Why Property is Better Than Shares

Risk is higher but so are rewards.

But my point is you gotta be able to stay in the game to reap the potential rewards. No point having an excellent returning asset but the volatility on high margin keeps you up a night.

If you think you can stay the course at 80% margin with your stocks down 20% and you see the dollar loss in your account and can ignore it and can address margin calls easily, then go for it.

 

You talking about me?

 

Well well...look who decides to show up..

Took a break from counting your millions eh...

 

I have been banned again .

... by the wife .

 

Have to agree with this, I thought I was made of the good stuff however with such a large sum (for me) invested in the markets it’s harder to stomach.
I remember loosing on paper just over six figures during the covid flash crash and being ok, not great but ok. Just the last couple of weeks I’ve dropped that amount on paper over a few days and to be honest it’s actually quite sobering. Not actually in the red, just dropping from highs.
With the above said this extreme volatility is due to a single stock that had gone from my average price of 11c to over $2 and now pulling back.
Moto of the story the next crash will test me when it comes, hopefully some old heads will be around to talk me off the ledge

 

I know some people who invest high 8 figures in the stock market and 2 of them swear by hypnosis.

 

I invest high eight figures! But that includes the cents.

 

Living on the edge!

 

imho share is way lower risk than properties. !
volitile yes,

 

Can confirm. Have IQ of potato

 

Hahah

 

i sold most of my resi cause dont wanna deal with tenants and PM, commercial is abit better but not great, so i am really all in stocks, i deal with 2 clicks off button (my broker don't have an app- unbelievable i know).

in terms of risk, if you have 100k cash,

its it risker to invest on apple/Berkshire/amazon/google

or a house in the tiny nation of Australia

i know which one i sleep better with.

 

whats the issues with the Commercial King30o0?

 

Nothing wrong, i haven't sold my commercials, just moved away from resi.

high risk high return

vacancy can be bad, depending on cycle, but returns are good and can be VERY good,

also with commercial, the barrier to entry is much higher. ahd at today's interest rate + consumer sentiment, might not be worth it.

stocks are much "easier" if you don't want to deal with people.

 

Wow. Read the entire thread. So many diverse opinions, experiences and knowledge packed into one thread. It has answers to many questions I had about investing in property and shares.

 

Some more reasons
You can get a centrlink reverse mortgage again ut

 

Please show some respect!

 

But even Blue chip shares are riskier as an investment, and this is illustrated by the lenders not by me, what is the maximum LVR will they lend? Yes, you can borrow against RE equity, but you will be entering more risky investment as an asset class defined by banks/lenders.

 

but are something like index funds riskier than property without the ETFs themselves being used as security?

the main risk with them is a margin call but if not used as security this risk disappears