We’re constantly reminded by the media about the property market and it’s ups and downs. The reality is Australians love bricks and mortar, and property investors like any other investor should be fully informed about the risks and rewards before making a purchase. After all, investment in direct property is relatively more expensive than shares, meaning that typically an investor needs more to get into the direct property market.
How does an investment in direct property stack up against shares over the long term? Accepted wisdom is that a higher return is only possible with a higher level of risk and there is no such thing as a guaranteed return. How do the different types of property perform, residential compared to commercial, new versus old, house versus apartment, city versus country, state versus state, suburb versus suburb, and so on?
These are not the only matters a savvy investor should consider about the inclusion of direct property into their investment portfolio. Until recently, there seemed to be a misguided perception that you could never lose with property. This simply isn’t true. Just like the world isn’t flat, property doesn’t always go up in value.
When an investor understands these points, they’ll see what is possible and what isn’t.
At Finesse we educate our clients so they understand why particular investments are suitable for them, how they are to be structured, what the benefits and the potential risks are, before inclusion in their investment plan.