This has been asked again and again by countless people like you looking for the right option – which is the best choice for investment, is it property or shares?
Producing residential properties has long since been the preferred option for the average person to start creating financial independence, and that’s what we will tackle in this article.
While it’s true that it’s difficult to outperform the long-term averages in the share market, outperforming the averages when investing in property can be very easy as well if you know what you’re doing.
The key is purchasing the right type of property, one in a high growth area and the other is someplace you can add value to.
You are investing in an imperfect market. Because property investment is an imperfect market, it makes that you’ll be able to purchase an investment below its actual value as well as sell it above the real value.
Shares investment isn’t a completely perfect market, but it has limitations. That’s because it is a market where most players are well informed. Overall, the overall marketplace will know the information you have, because, for the most part, the information is equal, which creates the so-called ‘perfect’ market.
It’s possible to add more value to a property. Adding value to your property via purchasing well or with renovations can let you accelerate its rate of capital growth. Alternatively, the fate of the value of your shares is generally out of your hands because it will depend on how well the directors who run it, and the company itself perform.
Property is a fundamental human requirement. On the contrary, companies, as well as their shares, can come and go. Property is a fundamental necessity unlike a business or corporation in which you can buy shares.
All of us needs a roof over our head, whether via renting or owning a home, but the reality is that companies come and go all the time.
Housing will always be in demand as a necessity. Its value will remain since all of us simply can’t live without it. This gives the property the advantage over shares with less risk as well as greater stability through time.
Australians love the property. Australians prefer property partly because property, unlike shares, is tangible. This means that it will always be the popular choice since volatility of the share market makes investors shy away from it.
Around 70% of Australians own a home and recent surveys are showing a huge number of Australians considering opting for an investment property over the next few years.
It is easier to become an expert in the property because there are fewer unknowns when compared with shares.
Where the new properties are at
Because of the demand for properties due to living areas or investment, many Australians are keen on finding the right one to purchase a primary home or for investment. You can find a house and land package near Melbourne CBD here. When looking for investment properties, be mindful of all the costs you will incur, your buying capacity, and if you’re emotionally prepared to take such a responsibility.
Take note that the property market is currently in more mature phase so be careful since not all properties are good investments, though now may be the right timing for you to get into the property game.