Stockmarket shares, or an investment property? It’s a global debate that never goes out of style.
And if you’ve taken a peek at your superfund balance lately (eep!), you may be asking yourself what’s behind the dip… and more importantly, where your money would be better off.
Last week, the Australian stock market closed on a ‘sour note’ with the ASX dropping 0.8% on Friday, driven by growing concerns around Trump’s controversial policy shifts and worsening global tensions.
The uncertain financial and political climate is certainly having a ripple effect on the Australian economy – but whether you’re already investing (in property, shares, or both) or simply thinking about it, now is probably not the time for knee-jerk reactions; as rushing to buy or sell, solely on the basis of today’s market conditions, is likely to do more harm than good.
Taking a step back, a look at the past decade shows that property rewards patience and those who play the long game. According to recent CoreLogic findings, housing has outperformed the sharemarket (over the past 10 years) and overall delivered slightly higher returns: 132.6% for property, compared to 126.4% with shares.
Needless to say, the appeal of the sharemarket is that trading shares is much quicker and more convenient than transacting property – but ease isn’t everything, as current headlines are indicating.
Property naturally promotes long-term wealth growth, and in this way offers stability against daily market fluctuations… as long as you’re not planning to constantly flip your assets, of course!
Beyond returns, what also sets property apart from the sharemarket is the wider value it represents. Sure, it’s great to see your investment property pay off – but the home is also tangible, provides shelter and can be altered, improved and completely repurposed to adapt to lifestyles – making it more than just an investment for most Australians.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | [email protected]
Prudential Real Estate Narellan | (02) 4624 4400 | [email protected]
