THE GOOD AND BAD OF INVESTING

PROPERTY – the good: Less volatile than shares. Owner has more control and can add value. Easier to choose a good asset. You can insure it. Tax breaks – higher negative gearing and depreciation.

PROPERTY – the bad: Less liquid than shares. Higher transaction costs. Much higher entry costs. Vacancy risk.

SHARES – the good: Easier to diversify as entry cost for individual assets is much lower. Overall lower transaction costs. Very liquid. Tax – you can get valuable franking credits.

SHARES – the bad: More volatile. You have no control over the companies in which you own shares. You cannot add value. Value drivers very subjective making it harder to choose strongestperforming assets. Difficult to outperform the overall market.