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Eagles4Ever

Eagles4Ever

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Shares or Property?

Shares or a an investment property? Which of these would be the safest long term investment option at the moment?
 
The safest? An investment property. The chances of making a loss on it over 10 years is virtually zero.
But a good australian share fund will probably give you better returns over that time. And on average a higher, more reliable income stream. But there is a chance that the value could fall.
 
Rob said:
The safest? An investment property. The chances of making a loss on it over 10 years is virtually zero.
But a good australian share fund will probably give you better returns over that time. And on average a higher, more reliable income stream. But there is a chance that the value could fall.
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Any investment property will do badly if you can't find someone to lease or rent it. Some people are having trouble with that now. And with the huge debts people are carrying on these investments, the interest payments can be a lot to have to carry while you're short a tenant. Also interest rates may well go up quite a bit from where they are today, which would eat into your margin even if you do have tenants. And if rates rose substantially, then the going price of properties such as these would fall, becuase buyers would dry up and there would be many forced sales from buyers who've gotten in too deep. Also, such a rate rise should see lots of selling from investment property buyers - the ones who understand investments should know to jump out once a good trend has turned sour. They can kick back and count their profits.

So anyhow, there's lots of ways in which a property investment can turn into a money pit. I'm not saying what will happen, just what could.

More sellers than buyers - for whatever reason - will drive any price down. Being the unfortunte one who buys at the very top of a market might mean you have to wait around 5-20 years for your investment to regain the price it had when you got it. When you buy big into any market that's had a really good run for a long time then you're at some risk of this happening to you. But then, the big trend might keep working for you for enough years that it turns out great. People who bought a family home 3 years ago & who might be up 50% today are looking pretty smart, and shouldn't really suffer even if prices died in the arse and fell by a third, or whatever. This is assuming though, that they've locked their interest rate... people with variable rate loans are taking a bigger risk of course.
 

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Re: Shares or Property?

Eagles4Eva said:
Shares or a an investment property? Which of these would be the safest long term investment option at the moment?
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I think it's laughable how you're making such big investment decisions on the back of advice from bigfooty.
 
Re: Shares or Property?

Argent said:
I think it's laughable how you're making such big investment decisions on the back of advice from bigfooty.
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I never said i was. It is an interesting topic though that is discussed a lot and seems to have no right or wrong answer. I have heard successes stories and i have also heard some horror stories of people getting stung with both types of investment.
Certainly an interesting topic. Thanks to those who replied with some worthwhile input.
 
Get Shares, leave it in their for 10-20 years and you will get a good return.

You can't just put it money in and take it out in 5 or 6 months.

I have money in 'Leighton' at the moment.

It is still down after 8 months.

Get, Woolworths......Get good money out of that.
 
GoSainters10 said:
Get Shares, leave it in their for 10-20 years and you will get a good return.

You can't just put it money in and take it out in 5 or 6 months.

I have money in 'Leighton' at the moment.

It is still down after 8 months.

Get, Woolworths......Get good money out of that.
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considering your age, you don't know wtf you are on about buddy. There are way easier ways to make money than that by investing.
 
Milne said:
considering your age, you don't know wtf you are on about buddy. There are way easier ways to make money than that by investing.
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It's not really such a bad suggestion. Over the last 20 years shares have averaged a 14% pa return. There is no reason to suppose that it would be any less for the next 20 years. The suggestion of investing in blue chip shares tends to take the trading worries out of the situation for those that don't wan't to be bothered with day trading etc,. Shares are also liquid, unlike many other investments.

So, if your happy with 14% return and no hassles I think it's not a bad way to go.
 
Frodo said:
It's not really such a bad suggestion. Over the last 20 years shares have averaged a 14% pa return. There is no reason to suppose that it would be any less for the next 20 years. The suggestion of investing in blue chip shares tends to take the trading worries out of the situation for those that don't wan't to be bothered with day trading etc,. Shares are also liquid, unlike many other investments.

So, if your happy with 14% return and no hassles I think it's not a bad way to go.
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Don't you think that investing in shares is alot more risky that it once was, what with the threat of terrorism and all. Look how long it has taken for alot of stocks to rebound since 911. Plus there is also the fact that because of the dot-com, investor confidence in shares has plummeted, and I could go on for days with many more reasons, but I'm not going to waste my time on it. With the added risk you would think that this would be more attractive to investors because of the increased yields people would get (a liquidity premium is added to entice investors to invest in riskier investments). However, there is isn't much apart from having a diverse share portfolio that can help minimise the risk. But then what if the whole share market dies due to an act or terrorism or some other reason? I'd much prefer to undertake other investments where I can offset the risks by hedging the market. Plus the returns are alot higher than the share market. Although you lot could just take the advice of a 12 year old and invest in the share market and lose all your money :cool:

/studies finance.
 

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i would like to ask, who in heavens name would want to invest money for 10-20 years?

Ten to TWENTY years for gods sake lads some of us will be dead in twenty years. Just rolls off the tongue though doesn't it, 10-20 years. Not sure a lot of thought went into that post, sorry sainter10 but i tend to agree with whoever wrote you probably don't know what you're talking about.

People in here probably know my opinion on making money. Shares and property are too slow for me, and i don't have enough control over whether they rise or fall in value. In my opinion if you are good at what you do and you have a bit of money sitting around (largely depends on how much i guess) i'd either start a business or buy into one in the industry you know well. Preferably a business that's not making money so it'll come cheap. Then go in work your guts out and turn it around, the profits you will make will far outweight anything you could make on the stockmarket. Only problem with this is if you aren't a gun at what you do you could lose everything.
 
Deej, I'm tipping that you invest in the dishlickas rather than shares.

If you're going to invest successfully the only way is to invest for the long term. The stats show that per annum shares and property over the last 20 years would give a fantastic return.

Take a look at a lot of the ethnic Australians who invested years ago (i.e The Jewish and Italians) They've made a truck load simply out of smart investment in these areas.
 
diamond8 said:
If you're going to invest successfully the only way is to invest for the long term. The stats show that per annum shares and property over the last 20 years would give a fantastic return.
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You didn't read my post did you
 
diamond8 said:
Deej, I'm tipping that you invest in the dishlickas rather than shares.
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Is that your only tip? Here i am getting excited you might have a sneaky one for the meadows tomorrow night!

Seriously though i'm not saying shares or property is a bad investment, just that in my opinion it takes too long to make anything off them and given we only live for 70yrs or whatever the benefits to me aren't enough. I'd rather go hard for 10yrs in a business and walk out with (hopefully) millions rather than take the more conservative approach in property.

Plus with property there's the banks you're paying interest to, tax benefits fair enough but really they aren't much when you look at it. A $400k loan over 25yrs will see you paying back nearly a million, so what's the property worth in 25yrs 1.5mill so what everything else has gone up too. So really you've just paid double for your joint and not owned it for half your life. By the time people pay off their places they're almost ready to die. Not for me thanks. But each to their own.
 
Deej said:
Is that your only tip? Here i am getting excited you might have a sneaky one for the meadows tomorrow night!

Seriously though i'm not saying shares or property is a bad investment, just that in my opinion it takes too long to make anything off them and given we only live for 70yrs or whatever the benefits to me aren't enough. I'd rather go hard for 10yrs in a business and walk out with (hopefully) millions rather than take the more conservative approach in property.

Plus with property there's the banks you're paying interest to, tax benefits fair enough but really they aren't much when you look at it. A $400k loan over 25yrs will see you paying back nearly a million, so what's the property worth in 25yrs 1.5mill so what everything else has gone up too. So really you've just paid double for your joint and not owned it for half your life. By the time people pay off their places they're almost ready to die. Not for me thanks. But each to their own.
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m8 no offense but ive been investing in shares for about 4 years and the returns you can get outa it are imo far better than what your suggesting!!!!!!!!!

an example i bought tower shares at 1.35 earlier this year knowing they were undervalued due to problems in the company, but these were being sorted out with new mgt team writing down assets etc ... in held them for 2 months didn't do much, had to sell b4 i went overseas, since then they have gone to $2.10. this is a gain of around 50% in 6 months. with a bit of research the sharemarket is a great source of investing.

btw: putting money into and running a business is not an investmnet strategy!!!! while the kids only 15 he makes a good point, i mean i was pretty clue at his age too, dont just dismiss him cos of his age!!!!
 

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BlueBoy83 said:
m8 no offense but ive been investing in shares for about 4 years and the returns you can get outa it are imo far better than what your suggesting!!!!!!!!!

an example i bought tower shares at 1.35 earlier this year knowing they were undervalued due to problems in the company, but these were being sorted out with new mgt team writing down assets etc ... in held them for 2 months didn't do much, had to sell b4 i went overseas, since then they have gone to $2.10. this is a gain of around 50% in 6 months. with a bit of research the sharemarket is a great source of investing.

btw: putting money into and running a business is not an investmnet strategy!!!! while the kids only 15 he makes a good point, i mean i was pretty clue at his age too, dont just dismiss him cos of his age!!!!
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All fair points in some way i guess. Big wins on shares only usually come for those involved in the company who's shares are being traded though, would you agree? The days of people making 10 times their money on the sharemarket within a year or two are few and far between. But the right business can do that, and remember you are pulling wages the whole time the business is increasing in value. Invest 50k in the right business and within 5 years you could have a multi-million dollar operation on your hands, and all sorts of cars homes boats and stuff being paid for in your name (or a subsidiary's name, 2nd or 3rd company being beneficiaries of the trading trust, if you set it up right).
 
I really have no clue in the whole share market area atm. But it's something I'd like to get into. Has anyone got some sites handy so I can investigate further?

Cheers
 
I'm shattered, I was going to buy into Seven Network when there shares hit $4.60ish which was liek close to there low for the last 12 months... but being the young person I am, I didn't have the money.
When i looked at the shares yesterday they were already back up to $5.33 and if Seven wins the Footy rights next year I will be one shattered and angry person at my parents for not buying shares for me.
 
Red_Devil_04 said:
I really have no clue in the whole share market area atm. But it's something I'd like to get into. Has anyone got some sites handy so I can investigate further?

Cheers
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Juzzy, the price of fish is more of your specialty isn't it?

;)
 

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