18 Nov 2011
For a long time investors have been debating over which they think is the better investment, some will argue property and others will argue shares.
Both property and share investments have their pros and cons and one isn’t necessarily better than the other, but it was interesting to see that a recent ANZ report showed that home ownership was shown to have the best investment returns over the past 24 years.
The Asset Returns: Past, Present and Future Report showed that home ownership generated an average annual return of 12 per cent over the last 24 years, and this was after accounting for other costs and taxes. Investor housing showed good returns also, with an average annual return of 9.6 per cent.
Shares on the other hand only showed an average annual return of 8.9 percent over the past 24 years.
One of the main reasons that owner-occupied housing seems to have made the most profit for investors is because it is exempt from property gains tax. Although even with this in mind, investor housing still performed better than shares.
In the years to come, the amount of profit made from housing and shares could change based on different financial climates, but there is little doubt that housing is and will continue to be a good investment for the future.
Even though in some areas, property may not be performing as well as hoped, what matters most is that you sell your home when you are at an advantage and the major benefit of investing in property is that you can have a home and a lifestyle available to you while you are waiting for your investment to grow.
So if you are interested in investing in real estate in the local area, please give me a call at Arbee Real Estate – Professionals Bacchus Marsh for more advice and to see what properties are currently available.