Why This Comparison Matters
Australians are increasingly looking for ways to grow their wealth — and two of the most popular avenues are property and shares. But which one is right for you?
This article doesn’t provide personal advice — instead, it gives a broad comparison to help you better understand the characteristics of each investment type.
Investing in Property: What to Know
Pros:
- Tangible, physical asset
- Can generate rental income
- Potential for long-term capital growth
- Can leverage through borrowing (e.g. home loans)
- Often viewed as more stable
Cons:
- High upfront costs (deposit, stamp duty, legal fees)
- Ongoing costs (maintenance, rates, insurance)
- Illiquid – takes time to sell
- Requires more active management or use of property managers
Investing in Shares: What to Know
Pros:
- Easily accessible — start with smaller amounts
- Highly liquid — buy or sell quickly
- Diversification across sectors and industries
- Historically strong long-term performance
Cons:
- More volatility — prices fluctuate daily
- Subject to market sentiment
- Emotional investing can impact decisions
- Requires more knowledge or research to understand
How Are They Taxed?
Generally:
- Property: Capital gains tax applies when selling an investment property, and rental income is taxable.
- Shares: Dividends are taxable, and capital gains tax applies to profits when you sell.
(Note: Tax outcomes vary — always speak to a qualified tax adviser.)
Risk, Liquidity & Time Horizon
- Property may suit long-term strategies and people who want a tangible asset.
- Shares offer flexibility, faster access to funds, and can suit shorter or longer timeframes depending on the investor.
Final Thoughts
Both shares and property have their place in a diversified financial strategy. The best fit depends on your personal goals, appetite for risk, time horizon, and desire for involvement.
Understanding the pros and cons of each is a great starting point. Speak with a licensed professional to explore options that suit your individual goals.
Compliance Notice
This article is for general informational purposes only and does not constitute personal financial or investment advice. Always consult a licensed professional before making any financial decisions.