IP3 vs Shares?

I tried requesting it when the forum was in its infancy.

Open - Thread tools and print view

Simon showed some interest and said he would chase it up based on how the Whirlpool forums do it (it is excellent by the way). Then nothing happened. I PM'ed Simon a couple of times and got no reply.

But I agree that it would be an excellent feature.

 

@Realist35 have you progressed in your decision re 'IP3 or shares'?

I'm in a similar position and it's been good reading about what others are considering

 

Hey mate, I just had a similar conversation with someone else from the forum, so I will just paste below my response to him.

I think it all comes down to how we think the two asset classes will perform over the next 15 years or so:

1. If we assume an average property growth of 5% at 80% LVR and 9.2% growth for un-leveraged shares (which is the average growth for ASX 200 with div reinvested over the last 30 years), then the two asset classes are almost identical. However if your strategy is to sell properties and live off dividends, than shares are significantly better due to CGT on property sale.
2. If we assume an average property growth of 5% at 70% LVR and 9.2% growth for shares, than shares are significantly better.
3. If we assume an average property growth of 6% at 70% LVR and 9.2% growth for shares, than shares are similar to property. Again, if your strategy is to sell properties and live off dividends, than shares are significantly better due to CGT on property sale.

Based on all of the above I have chosen shares. Also it is a less speculative investment and will help me reduce the risk by diversifying.