We are often asked should you invest in property or shares. The right answer is both will help you build wealth. The real questions to answer are, which one do you feel more comfortable with and do I have a balanced approach to wealth building.
One of the great things about living in Australia is that for most of us we are already investing in shares through our superannuation. So in one way we have this asset class covered.
If you are wrestling with this question we wrote an article back in September called Why Property Looks Like a Great Investment Choice where we looked at a number of advantages to investing in property. Here are three more reasons that may make you more comfortable investing in property.
You have a greater amount of control over property than you do with shares. You have options such as increasing the value of your investment property by renovating, sub-dividing, or knock down and develop. You have total control.
Property is less volatile than shares. What we mean by this is that the share market can move quite a lot in short periods of time due to the fear and greed of the market. While property seems to behave in a much more predicitable way with less short-term surprises. Here in Australia property prices continue to enjoy long term growth due to strong demand for housing fuelled by our growing population.
You Can See, Touch and Feel Property
This is an often over looked topic when people are weighing up property versus shares but the simple fact is we are all unique and some of us will base our decision on more than just the numbers. One of the nice advantages of property is that you can actually go and ‘visit’ your investment, you can see it, walk around it. For many investors this gives them real comfort and enjoyment.
We hope this helps you when you are deciding which asset class to invest in. We will continue to revisit this topic as there are certainly many further discussions to be had. If we can help you right now then please contact firstname.lastname@example.org