I personally think that it's good to have a "mix" of both property and shares.
If l really wanted to toot my horn, l would be bragging how I'm up over 110% on RIO at the moment and 1 of my investment properties is also up around 80% too, all bought within 5 years.
To pick out 1 single spec stock and say, yeah, l bought BCC 2 months ago at 4cents and sold at 16cents, IMO, is just stupid. That could have easily have just gone the other way and ended up with nothing. It would be like buying a cardboard box and selling it for a huge 400% profit. I hear so many people on these forums saying, yeah, l'm up 100% on this and 120% on this. Ok, on how much capital? I think that if your serious about shares, you need at least 100k-200k in something and a decent return, like 10%p.a. to keep up with a property investment.
The biggest sticking point with shares, is volatility! ANZ compiled data from the last 20+ years on property and shares. They both came to within the same returns over a time period, but with a
volatility factor put in, property won, hands down. Some people like to buy an investment and can sleep better at night knowing that it ain't going to crumble to nothing when they wake up in the morning, which shares can easily do. But, therein lie the big opportunities too.
Now, using the above example, of BCC, l know people who bought units in Cottesloe, W.A, beach front in early 2000 for around 100k, now worth over a million, and not to mention receiving rent in the mean time.
I've heard arguments on both sides of the fence;
1) Friend of mine bought shares, he's down 30% at the moment
2) Friend bought shares, he's up over 100%
3) Friend got a unit, he's down 15%
4) Friend got a house, he's up 75%
The property was in different parts of Australia, much like the shares, which were in different sectors.
What do l think personally about property prices. Sydney+Melbourne are going to surge because they've been stagnant for the last 5 years and there isn't a lot of construction happening. With demand rising, and not much supply entering the market, prices only have 1 way to go, up.
Brisbane l think will have a little boom like W.A. did because there is a lot of natural resource+LNG projects that are starting to take shape in the next few years.
The housing council of Australia estimates that we need to build something like 150,000 houses a year and we are only building something like 120,000. So, a little bit of a shortfall at the moment.
Just my thoughts, please don't kill me.