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Property versus Shares: which is a better investment in 2024?

With the real estate market gaining traction once again, which is your best option this year?

By Josh Bozin
Wed, Apr 3, 2024 3:05pmGrey Clock 4 min

For those on the hunt to find the perfect investment opportunity in 2024, two of the main sources of potential investment income to consider are shares, and the property market. The latter, currently, is gaining momentum again in Australia, coupled with stabilising interest rates, and inflation on a downward trend compared to this time last year.

On the other hand, if  entering the property market is out of the question right now and you’d rather start small, investing in shares is a great alternative to consider. Naturally, there are always going to be dangers and risks associated with any type of investment, be it property or shares, but with some research and guidance, you’ll be better suited to make a decision.

“One thing all investors should do in the beginning is understand the asset class they want to invest in. If your personal interest is in building a property portfolio, then researching property investing and understanding the ins and outs is key,” David Pelligra, director & mortgage broker at Wealth Point Lending, says. 

“The same goes for shares. If you are someone who enjoys the nuances of the share market and the inner workings of a publicly listed company, then again, researching that particular part of the market is important. My biggest piece of advice when investing is to speak with professionals that understand the market you are wanting to invest into.”

So, in 2024, which is your best option for starting your investing journey? What are the pros and cons of each? These are the questions you must ask before investing your money in either sector.

What are the pros of investing in shares?

The idea of investing in shares as a means for potentially earning high returns has long enticed those looking to increase their capital growth over a long period of time. Shares also present the opportunity for ownership in companies with shareholders enjoying particular voting rights and dividend potential. Those who invest in shares often have a degree of flexibility and control, which is a comfort when investing large sums of money. For example, should you wish to access your funds at any point in time, often you can do so instantaneously. This cannot be done with property.

“Shares are a liquid asset, meaning you can sell parts or all of your portfolio, allowing for quick access to cash,” Pelligra says.

When investing in shares, individuals — novice or otherwise — should consider adding blue chip shares to their portfolio. These are shares issued by a large corporation, often one of notoriety, with an excellent reputation and experience in market capitalisation. Blue chip shares are often safe and risk-adverse, however any financial gain is usually in the long-term.

What are the cons of investing in shares?

As Warren Buffett once said, “the first rule of an investment is don’t lose (money). And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are.”

Despite their advantages, it’s essential to remember that investing in shares also carries with it risks, including the potential for the loss of capital. Price volatility is also another important factor to consider — where shares prices rise and fall rapidly over the space of days or months. Those who invest in high risk shares — although seeking higher returns in a short amount of time — have to be prepared that they could lose a large sum of money depending on which way the market swings.

Naturally, when endeavouring to invest in shares, it’s important to conduct thorough research. This includes seeking advice from financial professionals before making large investment decisions.

What are the pros of investing in property?

Somewhat a no-brainer, investing in property offers a number of benefits, from capital growth (should the property rise in value over time), through to reduced volatility (historically, property prices only go up). If you’re planning on owning a property as an investment—and plan on leasing it—you can generate continual cash flow to cover your property expenses. Unlike shares, investing in property is a physical endeavour, in that it’s something people can see and touch, which is always favourable.

For those that are looking long-term and don’t necessarily need the instant cash flow (yield) renting a property can provide, investing in property for capital gain is also a great way to increase your finances considerably. Depending on where you buy, residential properties have the potential to rise in value in a relatively short period of time, and as a result, can offer owners a significant gain should they look to divest at the right time.

“Investing comes with an inherent risk, but the key is to look at past performance. Property, for example, has consistently performed in Australia for the last 30 years, so you could feel quite safe if you were investing,” says Pelligra.

“Property is also a physical asset that you can either live in, or earn an income from if you are to rent it out.”

What are the cons of investing in property?

There are a number of potential pitfalls that come with investing in property. No one can predict where the property market is going to go, whether interest rates will rise or fall, and if you plan on renting your property, whether your tenants do the right thing in the way of upkeep, making regular payments, and so forth. Properties can also have additional costs attached, such as maintenance, repairs and upgrades, as well as insurance. For those looking to gain capital on an investment property they don’t live in, you also need to consider the capital gains tax, which naturally reduces savings and investment incentives.

Of course, there are ways of mitigating the risks of investing in property by doing thorough research, and speaking to the professionals who can assist you on your journey.

All commentary made is considered general advice. It is recommended to seek financial advice from a professional before making decisions associated with investing.



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The property portal you didn’t know you needed making big strides
The property portal you didn’t know you needed making big strides

The team behind one of Australia’s biggest property sites is now enjoying rapid growth with a new portal offering unique insights

Fri, Apr 5, 2024 2 min

A new property portal providing an overview of all properties — for sale or not — is proving a hit with buyers.

February data from market research analyst IPSOS shows that View.com.au is now Australia’s fastest growing residential property portal with 102 percent growth in unique audience since October last year. The rapid rise means it is now challenging longstanding property portal, Domain.com.au, for second position behind realestate.com.au, which remains the most popular property website in the country.

View.com.au is headed up by seven former Domain executives, including former Domain CEO Anthony Catalano. The team were responsible for growing Domain to a $2.2 billion listing on the ASX.

Anthony Catalano fronts the team at View.com.au

Chief marketing officer for View.com.au, Paul Tyrell said the audience growth for the relatively new portal was ‘fantastic’.

“Our consumer proposition is unique and features over 136,000 properties for sale, however it offers a complete view of the market with access to nearly 11 million properties Australia wide, with buyers able to express interest in properties even if they’re not for sale,” Mr Tyrell said. “All delivered by best in class mapping from Nearmap.

“To be the fastest growing property portal in the country is a testament to the hard work of the team and a clear demonstration of the need for a competitive alternative in the property portal space.”

Mr Catalano said View.com.au offered a genuine alternative for agents.

“We can make it free or keep prices low because VMG’s business model is not predicated on listings revenue, where the only option is annual price increases,” he said. “We’re creating a true property ecosystem that caters to all steps along the property journey. View will soon bring finance propositions to market with our banking partner ANZ.”

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

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