Property vs Shares: Discover Your Knockout Investment Strategy

Conclusion: and the winner is . . .

You have almost finished reading the book and you’re wondering ‘Which is better, property or shares?’ Before we reveal who the winner is, let’s summarise how each asset performed, based on the criteria that were mentioned at the start of the book.

Capital growth

In general, shares as an asset class will outperform property as an asset class. However, this doesn’t mean that every share will outperform every property. There are many things to consider. When it comes to shares, you should aim to buy undervalued, quality shares. That is, you should buy into companies with strong management, a healthy balance sheet, a good business model and the potential to grow earnings. The timing of your purchase and subsequent sale of shares is critical. For property, you need to ensure that you buy the right type of property in the right location. A property with a valuable land component in close proximity to the city or the sea is what you should be looking for.

Income

It’s too hard to pick a winner in this instance, so we’ve called it a draw. There are shares that provide great income, just as there are properties that earn a relatively high rent. Overall, property and shares are both good assets if you are seeking a moderate to high income.

Tax effectiveness

Both property and shares are winners here. Owning Australian stocks has the great advantage that ...