As an investor, I’m constantly looking for a strong, long term investment.
I don’t want to take on a huge amount of risk, or debt, and I want something that is going to provide me with a passive income for life.
Both shares and property have a solid, long term track record in Australian, America and Europe.
I like the idea of both but I have been attracted to the property since reading Rich Dad, Poor Dad, when I was 23.
For some reason, property makes sense to me and fits better with my risk profile.
Pros of investing in property
- With 70% of Australia’s owning property to live in, property is less volatile than shares.
- Australia’s population is expected to exceed 50 million people by 2066, according to the ABS, providing strong future demand for housing.
- Banks can lend up to 90% of the value of a property.
- You can physically see and touch property.
- A quality property can provide strong, long term capital gains, along with strong cash flow.
- A quality property can be an extremely low maintenance investment, with the right team in place.
Cons of investing in property
- You need a large deposit to buy a property.
- Property is a long term commitment.
- You will not get rich quick investing in property.
- It can take months to sell a property.
- There are costs involved with buying, holding and selling a property.
- Property values rise and fall, like any other asset.
That said some of my friends have done really well out of the share market.
Pros of investing in shares
- Well timed shares can provide high returns over a short period of time.
- Shares can provide strong dividends.
- You can pick your shares, based on your personal risk profile.
- You don’t need a huge amount of money to start investing in shares.
- You can sell shares quickly.
Cons of investing in shares
- Share values can fall dramatically.
- A shares value can fall to $0.
- You are reliant on a company and its employees to continue making a dividend.
- Share values fluctuate daily and must be watched carefully.
- Understanding the share market takes time.
- It's more difficult to get finance for shares.
Property is more suited to people who like are looking for:
- Lower risk
- Long term gains
- Consistent cash flow
- Lower maintenance
As a husband and father of three children, this suits me well.
Shares are more suited to people who are looking for:
- Short term gains
They are also suited to people who don’t have a huge amount of capital and investors who like to be active.
Like what you've watched so far?
Why not book a one on one Strategy Session with us here:
WHAT CAN YOU EXPECT FROM YOUR STRATEGY SESSION?
By the end of your session you’ll have identified:
1. Where you are right now in terms of your property investing goals.
2. Where you want to be by the time you retire.
3. The roadblocks currently holding you back from achieving your goals and how to address them.
4. Your next action steps.
Follow Us Online Here:
Subscribe to our podcast, The Pumped On Property Show, Here:
DISCLAIMER No Legal, Financial & Taxation Advice
The Listener acknowledges and agrees that:
• Any information provided by us is provided as general information and for general information purposes only; • We have not taken the Listeners’ personal and financial circumstances into account when providing information; • We must not and have not provided legal, financial or taxation advice to the Listener; • The information provided must be verified by the Listener prior to the Listener acting or relying on the information by an independent professional advisor including a legal, financial, taxation advisor and the Listener’s accountant; • The information may not be suitable or applicable to the Listener’s individual circumstances; • We do not hold an Australian Financial Services Licence as defined by section 9 of the Corporations Act 2001 (Cth) and we are not authorised to provide financial services to the Listener, and we have not provided financial services to the Listener.