All about investment

By Scott Martin

When you're comparing shares vs. property in an attempt to decide where you'll invest your hard earned money next, it's never a case of one being entirely good or entirely bad. Shares and property both have their benefits and downsides. The important thing is to look for good choices in each sector, and to decide which option fits your particular situation.

For a while, the shares versus property argument was going in favor of property, as far as most people were concerned. Investing in property was fashionable. With the recent real estate crisis in America property investment is losing its appeal for many. However, that doesn't mean that investment property isn't a viable choice. Buying property to rent is still a good option, and there's plenty of opportunity available in commercial property.

Stocks and shares have bounced back and forth recently, and many people are concerned about their future prospects. However, the right choice can mean that, for you, the shares vs. property debate comes up in favor of the stock market. It all depends on your situation - there are good things about both of them. Anyone who argues that one is definitely superior to the other hasn't done his or her homework.

Benefits of Property

In general, property wins the shares vs. property argument for people interested in stability and long term growth. Property offers good leverage and strong capital gains. Established properties fare better, and it's important to choose carefully. Look for good locations and opportunities for price appreciation. If you want to be sure of income, think about rental locations as a safe bet.
Property investment is something that many find easier to understand than share investment. There's a certain level of knowledge and sophistication required, but less technical understanding. In terms of shares vs. property, property is also more tangible - you'll be able to see where your money is going.

Investing in property can also give you more control over your investment. Property investors have complete control over the investment, where share investors have only the influence of their voting power. In terms of shares vs. property, Property also gives you the ability to personally add value if you choose to renovate or develop it.

Benefits of Shares

When we talk about shares vs. property, shares offer high liquidity and good cash flow prospects. They're easier to profit on in the short term, if you keep a good eye on shares prices. Income is one of the most certain parts of any investment return. That means you should look for companies you know to be well managed, which have a good profit record if you think shares are the best choice in the shares vs. property debate.

In addition to the above, when it comes to shares vs. property, shares are much more divisible. You can sell down portions of your portfolio without selling the whole thing - something that can't be said about property. The minimum investment is also usually lower. If you can only invest five thousand dollars, that's not a problem.

Transaction costs are lower in the shares vs. property debate, too. The only costs required are brokerage on acquisition and disposal. On the other hand, property will have a number of extra costs on both ends, plus the cost of maintaining it. Direct share ownership actually has no ongoing costs at all.

Property vs Shares? As long as you are investing are heading in the right direction.

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