When you want to start building an investment portfolio, you may consider to either invest in property or invest in shares. Both choices come with their own benefits, and while the decision is ultimately a personal one based off your own wants, needs and financial goals, seeking professional advice is an important step. So, to help you better understand each investment choice, and whether investing in property or investing in shares is right for you, we have compiled some pros, cons and must-know facts.
Investing in Property
For many Australians investing in property is a popular route to take thanks to its familiarity. The physicality of the investment helps people to see where their money has gone. Plus, most people understand the concept of owning property and have confidence in the real estate market.
Another one of the key factors that people love about investing in property is its long-term investment, with a planned outcome. When dealing with large sums of money, people want stability and reliability. When you buy an investment property, it will generally remain an unchanged investment for years, even decades, with the expectation of general upkeep.
Investing in Shares
When you invest in shares you have part-ownership of a company. When the company earns money you too will often earn money through dividends, and when the company goes up and down in vale, the value of your shares will move accordingly. This is in stark contrast of a steady investment property, but the differences don’t stop there.
In comparison to the long-term investment that is property, shares are a short to medium-term investment and need to be treated as such. Shares are all about buying low and selling high, allowing people to have a big impact in a restricted amount of time.
Discuss Your Investment Options with A Specialist
There are advantages and disadvantages of both investing in property and investing shares, and as discussed it will come down to how you want to make money, and what you feel comfortable doing.
Buying a house, apartment or even residential property to then rent out is a tangible, less risk option than investing in shares, but that is not say it is best option for you. Making the right investment decision is a big one, so to learn more about property investment and its multitude of benefits, reach out to the team at InStyle Property Management to discuss your needs.