Address Level 2, Collins St Melbourne VIC Analysing purely on a short term basis, will naturally favour one option over another, depending which time period you choose. But , is this really the knockout blow for equities in this great debate? If you subjected the property market to daily trading, like shares, it too, would appear very volatile.

So lets start comparing apples with apples. And, I might add, the cost of maintaining this asset is virtually zero. Comparing right down to the minute detail of expenses like; rates and water charges, does seem a little petty now. Stock Doctor Star Growth Stocks performed Yes, there are many things to like about property investments. However, one that strikes me as particularly strange, is the obsession in having a tangible asset. The attraction to bricks and mortar is completely irrational, yet people often let it influence financial choices.

The fact remains, bricks and mortar are no more secure than stocks.

Real estate vs. the stock market - MoneySense

The difference is, stocks do have a number of rational advantages over property. Particularly if you are just starting out on the investment path and have relatively modest capital at your disposal.

Shares are simple to invest in, if you have the right tools to guide you. With the help of an investment platform like Stock Doctor , you can easily research and select and invest in a wide range of stocks that align with your objective. Your returns will be governed by the fundamental quality to the companies you hold and your ability to remain disciplined in the management of your portfolio.

Your holding is liquid: You can sell the shares you want, when you want, without having to wait for long periods of time. If you need to sell your property, you need to outlay money to cash-in the asset, paying thousands to realestate agents just to manage the sale.

Also, long sale processes, cooling off periods, settlement periods, result in your money being tied up for months at a time. Property requires, you to engage agents, conveyances and lawyers to make a transaction go through — and that means very steep transaction costs!

The ability to diversify: Shares offer you the ability to diversify across sectors such as mining, health and even property through a real estate investment trust REIT. With direct property you could invest across a range of sectors such as residential, commercial or industrial property. However, the cost of diversification would be exorbitant. Often the only way an investor can buy a property is if they take on a large amount of bank debt via a mortgage.

This can put enormous strain on investors if they borrow outside their means. Investing in shares requires a much lower outlay. A few hundred dollars will get you started.

Lower capital and cost requirements: As with any business, the owner will benefit when a company grows and increases its profits, making their investment more valuable. This gives you more flexibility to spread your investments across a range of companies.

With property, this is usually a very large, single investment. Volatility is your friend. Any seasoned share investor will tell you that volatility is indeed your friend.

It is the vehicle that drives growth, through all the buying and selling and changing demand throughout all market conditions. In turn, this fuels longer term share market growth and puts money in your pocket. Even during those blips! But, we believe that if you only invest in one asset class, shares are the standout choice. In our experience, share market investing provides the best opportunity for wealth accumulation over the long-term, with fewer risks, and stronger returns.

But by all means try if you like. If you are feeling a little overwhelmed by all the numbers, why not speak to an experienced Lincoln team member to explain it in more detail.

You owe it to your future self, because the decisions you make today, dictate your chances of a secure, comfortable retirement. Renowned for their outstanding performance, Star Growth stocks represent a portfolio of companies with exceptional financial health and strong growth prospects. Lincoln Australian Income Fund This managed fund is designed for those seeking a reliable and dependable income stream.

Lincoln Indicators Pty Limited ABN 23 , as Corporate Authorised Representative of Lincoln Financial Group Pty Ltd ABN 70 , AFSL This blog may contain general financial product advice. It has been prepared without taking account of your personal circumstances including your objectives, financial situation or needs and you should therefore consider its appropriateness in light of your objectives, financial situation and needs, before acting on it.

You should read and consider our Disclaimer for more Important Information and our Financial Services Guide FSG which sets out key information about the services we provide. The Disclaimer and FSG are available at www. Star Growth Stock returns were calculated by Lincoln as a measure of the historical performance of the strategy reflecting the changes in recommendation and the performance of them over time and does not represent an actual investment. Investments go up and down.

Past performance is not a reliable indicator of future performance and should not be relied upon. The portfolio is rebalanced to equal weight exposure when the composition of the Star Growth Stocks changes. For all transactions, closing prices for the next trading day are assumed. Transaction costs of 0. Returns are expressed in a per-annum basis. The calculation makes no allowance for other distributions, government charges or tax, or annual subscription fees payable to Lincoln.

All performance figures are calculated as a per annum percentage and reflect the overall capital return and dividend income paid of the strategy highlighted above for the stated time period presented. It is important to note that for returns on periods longer than 12 months, actual annual returns achieved during the time period would have varied, both positively and negatively, from the stated overall performance figure.

For returns of 12 months, the per annum performance varies positively and negatively month to month reflecting the volatility of the equities asset class. Therefore no performance figure should be taken as a reliable indicator of future performance. The Star Growth Stock criterion has not remained constant but has been revised and updated over time. The quoted performance reflects actual Star Growth Stock recommendations as they have been published to the public over time and have not been retrospectively implemented.

Star Stock encompassing Star Growth, Star Income and Borderline Star Growth returns were calculated by Lincoln as a measure of the historical performance of the strategy, reflecting the changes in recommendation and the performance of them over time and do not represent an actual investment.

The portfolio is rebalanced to equal weight exposure when the composition of the Star Stocks changes. Dividend distributions are reinvested in the specific investments which generate the distribution on the appropriate ex entitlement dates. Returns are expressed on a per-annum basis, with the exception of time periods of less than 12 months where they are quoted as actual for the relevant period. All performance figures are calculated as a per annum percentage and reflect the overall capital return and actual dividend income paid of the strategy highlighted above for the stated time period presented.

The Star Stock criteria have not remained constant but have been revised and updated over time. The quoted performance reflects actual Star Stock recommendations as they have been published to the public over time and have not been retrospectively implemented. This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information.

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Shares v Property - a 20 year investment comparison Lincoln Indicators

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Call Lets compare two Australian favourites; an average Australian property Versus an average portfolio of ASX shares. Which do you think delivers the higher return?

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But, if you really want to be knocked for six, look at these figures: And the proof… Yes, there are many things to like about property investments.

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