It’s a debate as old as time – what’s the better wager? Will borrowing to invest in property or shares reap greater benefits?
The reality is there’s no ‘one size fits all’ answer to this question. Property and shares both have their risks and their rewards, and success at either form of investment depends on your attitude as an investor.
Are you looking for short-term returns, or are you playing the ‘long game’? What’s your appetite for risk –
can you afford to make a loss or are you ready to speculate?
As a general comment, wealth is not built by most individuals when ‘timing the market’ – i.e. buying stocks or property at a market low before trying to sell at a market peak within a cycle or two. Timing the market requires a crystal ball, time to watch your markets extensively – and an appetite for risk and swift transactions!
Naturally, both the property and share markets are affected by fluctuations in the short term, which can leave risk-averse investors anxious about their assets. By taking a longer-term view – known as time in the market – and observing trends over a substantial period, property or shares bought well can both offer quality returns.
Buy well, buy once is the mantra of many savvy share market and property investors. Interested in
building either a property or a share portfolio?
Contact your broker to discuss lending options that work best for your circumstances.