Ben
Member
property is beginning to look more attractive.
Each has it's pros and cons, however I think property is more suited to the "typical aussie".
Another thing.
Let's say you have $100k in the bank.
You can leverage property at 80% without paying LMI. Your $100k will get you $500k worth of property. Property doubles on AVERAGE every 10 years, so your $500k property is now worth $1m; you've turned your $100k into $600k.
Leverage with shares varies between nothing and 50%. At 50% leverage, you would need to generate an average annual compounded return of 13.35% to turn $100k into $600k. At no leverage, you'd need to generate 19.62%. Possible? Of course. However, if you look at the historical returns of most of the professional managers, very few achieve it.
With shares and leverage, you also need to have cash reserves or be prepared to sell at a loss if margin called.
No such thing with property.