Why Property is Better Than Shares

Where's the fight in this thread?

 

You changed your avatar, last week it was property you love this week its dividends.

 

No I didn't, you're imagining things.

 

Thats my favourite

 

But if I want to get really serious it would be this:

 

Hey Terry, why not shares just (<10 yrs?) before retirement?
Say you didn't have IPs or shares and turned 50, and lets say you don't have full control over your super (SMSF or tfr to a "better" fund option) to take that out of the equation, are you saying that an IP or ten would be more ideal before retirement (say at 60)?

 

Hey mate forgot to ask, How much is lmi costing you?

 

I think it's around 10k per property roughly..
That's another thing that makes etf's very attractive.

I think there is no fight been property and shares, ideal portfolio should include both, maybe 50:50 ratio.

 

10k each for the 2 houses using lmi.
If you borrowed 80% only by using the 100k, that would have saved you 20k?

 

Yup

 

Something to sample that homebrew with

 

But replace "tomorrow" with "PERMANENTLY".

 

General info only - Yes diversification is a very important part of the big picture and agree the leverage advantage with property is not all it's cracked up to be as there are many other strategic considerations than just leverage. There are also plenty of ways to leverage shares too - margin, warrants, internally geared funds, etc.

Depending on your intended property purchase price, you may be able to immediately set up a 'spare equity' account and start your portfolio at the same time Could then continue on with debt recycling/DCA for portfolio.

I must be honest and say I think you would be wise to consider seeking professional advice as I can see from your questions there are some elements of your strategy that need more discussion/clarification.

 

2014 article, so not inclusive of current Sydney - Melbourne

Property or shares - which is a better investment?

An interesting article last week compared the returns from property and shares over 10 and 20 year periods respectively to December 2013.

 

This
Summary

In summary, two very different asset classes that are nigh on impossibly difficult to compare in any meaningful manner.


How can anyone compare, its just general statement and meaningless really, because it will come back to the investor, skill, what they purchased, property/shares, success rate

For example if property investors managed to buy in 2 or 3 booming property markets over the last decade they made a killing, and those that purchased in falling or flat markets either went backwards or made very ordinary gains. Just saying....

 

Well I can compare shares that I have been holding for a while.
Easiest one is IAG (from NRMA) that has been reinvested since 2005.
To note that Sydney& Melb RE is above the long term avg growth atm.
And share markets can also be timed.

The more I look at it, the better equities are as an investment after having accumulated some RE.

One thing I would NEVER do is buy LICs or ETFs.
People here seem to forget that when market gets volatile, and it always when not if, your accounts will be accounts will be locked.

 

@austing - what does he mean - your accounts will be locked??

 

Ah didn't we tell you about the LIC / ETF account lock??

 

I have heard of trading halts.
But account locks are a new one to me.

 

When the markets get volatile, usually a fairly big drop, you will not be able to withdraw or sell out of managed funds.
LICs and EFTs will likely be suspended from trading.
Either that or take a big loss and close.

Then they start another fund from a much lower level and tell you how wonderful they are.