Property vs Shares: Which is Right for You?

In times of boom and bust, it’s easy for opinions to swing to extremes—“shares are too risky” or “you can’t lose with property.” The truth is more balanced. Both asset classes have strengths and risks. The job is to match them to your goals, time horizon and risk tolerance.

Risk

Share prices are visible and volatile. Seeing values move daily can make investors anxious and tempted to sell at the wrong time. Property can feel safer because the price isn’t flashing on a screen, but the high costs of buying and selling, maintenance, and lower liquidity introduce a different kind of risk.

Yield

Rental yields fluctuate in tandem with rents and prices; when prices rise more rapidly than rents, yields compress. With shares, when prices fall, dividend yields can rise—and franking credits may further improve after‑tax returns for eligible investors.

Supply & Demand

Short‑term price moves are driven by what buyers and sellers do next. Smart investors try to anticipate demand rather than chase the latest hot spot. Oversupplied inner-city apartments are a classic reminder that timing and selection are crucial.

Value

Price matters. With shares, common measures like the price‑to‑earnings ratio (P/E) help you assess whether you’re paying a fair price for expected earnings. With property, compare recent sales, rental prospects and holding costs.

Bottom line

Property and shares can both earn a place in a diversified portfolio. The winning mix depends on you—your goals, time frame and cash‑flow needs. A licensed adviser can help you build a balanced strategy rather than betting on one side of the debate.

Make an appointment with me today for a no-obligation chat to discuss the ultimate way to secure your financial future.

Disclaimer

General advice only: This information is general in nature and does not take into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for your circumstances and seek personal advice. Past performance is not a reliable indicator of future performance.