Shares Or Property Investment, Which Do You Prefer?

Discussion in 'General Trading Discussion' started by longtermbull, Mar 23, 2019.

  1. longtermbull

    longtermbull Administrator Staff Member

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    It could be argued that shares are more volatile while property investment is more of a long-term strategy. Between the two, which do you prefer and why?
     
  2. gowiththeflow

    gowiththeflow Senior Investor

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    I recommend using property investments as your long term backbone and taking a little more risk (within reason) with your equity investments.
     
  3. J_C_Anderson

    J_C_Anderson Senior Investor

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    As for me, stocks will give you more flexibility. First of all, you can always check the current market price, so there will be no surprises like ones possible with the real estate.
    Another point is liquidity. You can easily sell your shares even if you have large position - if it is an investment in Mid Cap (at least), you will be able to close your position in 1-3 days without substancial price decline, which is almost impossible for RE.
    At the same time, you could by reail estate if you are going to use it (for example, lend it to someone).
    To my mind, the better way will be to diversify your investment, but the part of RE in your portfolio should be something like 30%. For sure, it is not a strict rule, but just an assumption. It mostly depends on situation in your region, your investment goals and risk attitude.
     

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