Property vs shares for investors
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.