Lets Settle This Property or Shares

Trying2SaveABuck on 25/11/2020 - 23:37
Last edited 25/11/2020 - 23:38

There is a bit of a debate happening after apparently one guy spent close to 12m on 3 different 'the block' properties. - A few investment threads had bagged out the purchases as stupid and that putting that money into the market is better way to go.

So is it better to invest in property or invest in shares. Thoughts?

To clarify by shares i would include EFTs/LICs and property investment is strictly for investment purposes not for owner occupier reason no dodging tax crap like saying you lived there for 12 months when u had it rented out for cash to randoms from flat mate.com.au . Has to be 100% legal

Poll Options

  • 31
    Shares
  • 20
    Property
Financial

Comments

  • 0FoxGiven on 25/11/2020 - 23:47
    +6

    The guy who bought those properties recently sold his IT consultancy to HCL for $115.8 million. So he is cashed up and he was wealthy to begin with. I guess this was just done to get the media's attention and show up on the front page. They were not meant to be smart investments.

    • Drakesy on 26/11/2020 - 00:49
      +1

      This, one ended up getting donated and im guessing the rest will just sit there.
      I dont think he's too concerned with making more money given that that 115 mill some 20 odd years ago, if invested smartly would be worth a considerable portion more.

      Smart investment? No
      Does he care? Probably not.

      Im still in the camp that sydney and melbourne have nowhere to go but plateau or down (but the market has been fixed for a while now so i doubt it'll happen)

  • mit on 25/11/2020 - 23:48
    +2

    Both. But you already knew this. You can also invest in property through shares without the headache if that's your thing. You can argue one way or another and historically see where both have had upsides and downsides. And of course, it also depends on your financial situation etc etc etc…

    The most stupid thing is thinking there is only one way to invest.

  • LemonShapedRock on 26/11/2020 - 00:01
    +1

    Transaction and maintenance costs if property make it a hard sell for me for investment.

    Ideal setup is both I guess to be diversified.

    • mskeggs on 26/11/2020 - 01:02
      -1

      Need to do a lot more than that to be diversified. Property and shares are strongly correlated.
      If you want to diversify for risk reduction, you need to own some "shitty stuff" that only goes up when property and shares don't. This has basically not happened for 25 years, so people have forgotten how it works.

  • whooah1979 on 26/11/2020 - 00:04
    +1

    Do you have other?

    • mskeggs on 26/11/2020 - 01:00

      C'mon, we buy high and sell low round here.
      Only a loser would seek out undervalued investments that might appreciate over time. Winners join the 1st place podium of expensive investments!

  • AustriaBargain on 26/11/2020 - 00:04

    Shares. If you want a dream home then buy it, otherwise rent and invest elsewhere. It's very liberating knowing that you don't have to give one damn about the condition if the place you're renting will be in five years, if you plan on moving by two years anyway. And by renting you'll have more spare money to invest in shares, compared to paying off a huge mortgage and paying all the costs to maintain a house that normally would be covered by your landlord.

  • TheBird on 26/11/2020 - 00:10
    +1

    If you're only considering shares or property, you've already lost the game you didn't know you were playing.

    What you want is what's right for you. Your needs and requirements. When you have $115M, throwing $12M into real estate can be a solid move.

    • mskeggs on 26/11/2020 - 01:04
      -1

      Or if it is dumb, no dumber than buying a new car is for somebody on a regular income. Not something of grave importance that will make or break you.

  • Donaldhump on 26/11/2020 - 00:27
    +3

    Shares, just fit the least hassle.

    Can sell in 1 second
    Can buy in 1 second
    No douche lord renters
    Buy property, gold, silver in the shares

  • marquise on 26/11/2020 - 01:02

    Weekly expiring options

  • bemybubble on 26/11/2020 - 01:31
    +1

    Property all the way.

    • Banks will mortgage it
    • Can’t make it (unless you’re in the South China Sea)
    • No matter what happens to the market, people always need a place to live
  • Tasmaniac on 26/11/2020 - 04:11

    I guess it depends on your knowledge of property and shares. If you want above average returns you need above average knowledge. For me it's shares, only because I know more about the markets than I do about property.

  • djkelly69 on 26/11/2020 - 06:54

    As with most things, it depends.

    It depends on:
    - risk profile
    - life stage
    - financial goals
    etc, etc

  • orangetrain on 26/11/2020 - 07:49
    +1

    Do both. Do micro transactions, allowing people to buy/sell property shares!

    • mrtin on 29/11/2020 - 22:58

      Yeg why not both. That should be an option!

  • brad1-8tsi on 26/11/2020 - 14:50
    +1

    The property buyer obviously isn't stupid or he wouldn't have $12m to play with.

    I like shares because:
    They are easy to get into and out of.
    I can diversify easily
    I don't need to leverage 80%.
    I don't have to deal with REs and tenants.

  • Ghost47 on 26/11/2020 - 20:19

    Shares because I don't want to make people to pay me for something that will eventually be mine because I'm not a jerk. I don't care if the return over the long term is lower, I'll still be having my money working for me and I won't be making it hard for other hard working Australians to achieve the Australian dream.

  • ozbargainerlife1 on 29/11/2020 - 23:17

    12m in share market… if it goes down 5% you will sh** in pants.. property will not go down that much….

  • Some Guy on 07/12/2020 - 19:04

    Go for shares. Provided you own at least one property that will be paid off by your retirement age.

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