Check out what this Australian blogger has to say about "Property or Shares - what's best".
“As a general rule in Australia, houses don’t get half their value wiped out overnight”.
However, everything must be done in moderation. Shares can be an excellent income supplement to help you service your loans if managed correctly. The trick is to diversify your investment portfolio and not put all your eggs in the one basket. At the end of the day however, my opinion is that houses win hands down. Let explain why.
Lets say that I go out and buy a property and my mate Roy buys shares. Now lets asume that at the time we both have $40,000 cash (as a deposit) to invest..er I wish :) For a property, banks will loan up to 90% (sometimes 100%) and for shares they will generally loan up to 60%. With my deposit of 40k I can borrow 360 k (90%) therefore 400k in total to invest in property. Roy with his 40k can borrow 60k (60%) therefore 100k to invest in shares." more
Vacation property and recreational land can do the same for your portfolio. And better still you get to enjoy them. Go hunting, hiking, camping, fishing, bird watching, ATVing, cross country skiing - well, the choice is yours! Big acreage or small parcel, land will always be an asset you can appreciate.
Picture yourself here: The woods, the water, the hills, the sky.
Now that's investing!
