As Steve says, property is a better wealth creation investment than shares, though shares outperform, property is better because of leverage. The biggest benefit I see is that property has a regular, steady income stream, which is good for retirement and finance needs.
Well with new financial products recently developed, leverage is now better with shares. is it time to re-evaluate? Im not talking cycles. Im talking long term trends in the future. Gone are the days when brokers charged 3-5% and promoted stocks they were selling. Now there is no stamp duty, no brokerage, no costs at all (using CFD’s)
and property investment is still bogged down with high costs and delays. I mean 90 day settlements? crikey! I can sell all my investments and bank the proceeds in 5 mins flat! and I wont lose 10% of it in agents fees and stamp duty either. I dont need approval to borrow more money, and I can unlock my equity in real-time. Also, it is now very easy to hedge shares. hedging means insurance against falling prices. I can easily buy NAB, and short sell CBA so that if a crash happens I dont get wiped out. Actually I am preying for a crash, cos I will make a lot of money.So lets discuss the pros and cons…..I am sure a lot of you have built a lot of wealth in property. But ask yourself, “how much would I have if I had chosen shares instead?”
crashy – you’ve scored the quickest 20 in forum history and you dont even like property. thats a great effort.
not sure how many replies you will get on shares, that miught be whole different forum
good luck
crashy, you certainly make some valid points, but did you really need a second thread on essentially the same topic?
Rod.
you have a point there.
my view is that if someone is going to promote entry into an investment that is booming, then they have a responsibility to warn about the end of the boom and promote the exit of the investment. Unless of course it can be justified that exit is a worse option than staying put.
Now Steve could tell me to shut up and bugger off, but I was under the impression this site is to help people succeed in property. I forsee that many will endure failure in the future, and success may mean getting out or not getting in to begin with.
At the end of the day its all about each of us making the $$$$$$$$. Yes you might make money buying property here, but I see the risks are great. Im not saying property is a bad investment. Im suggesting we all look for the BEST investment.
I believe in risk management.
Property: cash flow pos, or extra land to subdivide and act as a buffer in case values fall
2.shares: insure them against crashes as you would insure your property, car, health etc.
Ultimately, when I am old and doddery (I hope not too soon), I would like a hassle free income stream, eg a share portfolio, I can write cov. calls against it and collect dividends.
Who wants property and tenant hassles then, you want to be travelling and or looking at the sunset on your verandah.
Currently looking at getting into a hedged share portfolio, as all we have is property.
Sorry, I am sure I am out of order talking shares in a property site.
By the way, forget share “trading”, CFC’s, unless you are: 100% disciplined, unemotional and have a sure fire trading system.
I am speaking from many months of stress and thousands of losses, thinking share trading had all the cash flow answers.
The topic ‘time to re-evaluate the shares Vs property argumen’ is closed to new replies.
