The argument over whether it is better to invest in shares or property has raged for decades and will continue to be argued for decades to come. At Navado Financial Advisors, our Financial Planners have learned over the years that it all comes down to the individual and personal situation. Whether it is better investing in shares or to have an investment home or investment property can only be answered on a case by case basis. Below is a brief description of how some people invest in shares and property.
Shares – Are often (but not always) suitable for two types of investors. The first type is those with substantial time and skill who are able to thoroughly investigate the investments they are proposing to select and then tracking the progress of the investment. The other type is those who are time poor and are willing to pay the fees involved to invest in Exchange Traded Funds (ETF), Managed Funds or hire a professional to study the share market and track its progress on their behalf. Shares tend to be more volatile and so they are not appropriate for everyone.
Property – Is sometimes (but not always) beneficial for people who are willing to put in the effort necessary. Investors will be selecting and (at times) changing tenants, organising repairs and other parts, putting in the time required to track expenses and paying the extra cost of having your tax return done due to the fact that the Tax Return is now more complicated. For the savvy investor there can be substantial benefits but for those who over-commit or make one of the other many bad decisions the repercussions can be severe.
We recommend you speak with a financial planner before making any investment decisions to ensure that they assist you in meeting you needs. Our financial planners are able to meet you in your home or in our Sydney Office.
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