When it comes to growing your wealth and securing your financial future, investment decisions play a pivotal role. Two prominent options that often take centre stage in this discussion are property and shares.
Is property a better investment than shares?
This question sparks debates among investors, financial experts, and enthusiasts alike. The truth is, the answer depends on your financial goals and risk tolerance. However, property investment consistently emerges as a strong contender. Let's delve into why property is considered a superior investment vehicle.
Property offers several advantages that make it a sought-after investment option:
When you invest in property, you require a tangible asset with intrinsic value. Unlike shares, which represent ownership in a company, property provides you with a physical space that can be used or rented out to earn an income.
Owning rental property can generate a consistent monthly income through rental payments. This dependable cash-flow can help cover expenses, service loans, and even provide you with passive income. Consider reading more about high rental yield investments, with a dual income property.
Over time, property values tend to appreciate, making real estate a potentially lucrative long-term investment. While shares can also appreciate, they may be more subject to market volatility.
Shares, despite their popularity, come with their own set of risks:
The stock market is known for its volatility, where share prices can fluctuate significantly in a short period. This can expose investors to sudden losses.
Shareholders have limited control over the management and decision-making processes of the companies they invest in. In contrast, property owners have direct control over their asset and its management.
Achieving diversification in the stock market can be challenging, especially for individual investors. Property investors can diversify their portfolio by owning properties in various locations and different types of properties, such as houses, units or multi-rental homes like dual incomes or duplexes.
Typically, the property market is less volatile than the stock market.
While both property and shares have their merits, property investment often stands out as a reliable choice, particularly for those seeking stable income streams and long-term growth.
The information provided is general in nature and should not be taken as advice as it does not take into account your personal circumstances, needs or objectives. Individual lender criteria applies to the approval of credit products. Terms and Conditions and lending criteria apply and rates are subject to change.
If you prefer to have a strategy in place before starting your property investment journey, this is for you. In this article we outline 6 key property investment strategies successful investors use to maximise their returns.