Prop­erty vs shares for in­vestors

Daily Mercury - - REAL ESTATE - — Erin De­lahunty, realestate.com.au

IT’S THE mil­lion-dol­lar ques­tion – to in­vest in the stock mar­ket or prop­erty?

Out­side of su­per­an­nu­a­tion, prop­erty and shares are the two most com­mon ways of build­ing wealth in Aus­tralia, but choos­ing be­tween the two can be hard, ac­cord­ing to Chris Brycki, founder and CEO of Stockspot, Aus­tralia’s first dig­i­tal in­vest­ment ad­viser.

Brycki, who has more than 21 years of in­vest­ment ex­pe­ri­ence, says shares and real es­tate have both gen­er­ated re­li­able in­come and cap­i­tal re­turns for Aus­tralians over the long-term.

He says there’s no clear an­swer to which is best – be­cause it de­pends which way you look at it.

“Over the last decade, the win­ner would clearly be prop­erty, but over a longer pe­riod, say 100 years, the re­sult is pretty even be­tween shares and prop­erty,” Brycki says.

“Look­ing to the fu­ture, in some ways it’s any­one’s guess, but based on all the data we have, we know over a pe­riod of time, both types of as­sets will go through pe­ri­ods of do­ing well, but then come back to the av­er­age.

“Prop­erty has had a great pe­riod of late, so the chances are it will prob­a­bly come back to the av­er­age,” he says.

Brycki says there are gen­er­a­tions of Aus­tralians who’ve never seen prop­erty dive, but do re­mem­ber stock crashes, so be­lieve prop­erty is the best bet.

Shares though, have gen­er­ated re­li­able in­come and re­turns for Aus­tralians over the long run, he says.

Brycki says choos­ing the right one comes down to in­vestors’ time­frames and un­der­stand­ing the ad­van­tages and risks as­so­ci­ated with both.

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