Property vs Shares: Where Should You Invest?

One of the most common debates in wealth creation is whether to invest in property or the share market.

The short answer? There’s no right or wrong—only what’s best for your personal situation and financial goals. In many cases, a combination of both can be a great strategy for building long-term wealth.

Personally, our team invest in both, though the majority of our wealth is in property. Why? Because we believe it provides the safest and most consistent path to growing our financial position. It’s also an asset class we understand deeply.

Why We Favour Property

We like that property is tangible—you can see it, touch it, and know that land doesn’t just disappear. While companies can go under, wiping out shareholders’ investments, property retains value over time.

The share market fluctuates by the second, making it easier to react emotionally and make impulsive decisions. Property, on the other hand, is a longer-term investment. Since you can’t buy or sell at the push of a button, it can help prevent emotionally driven mistakes—one of the golden rules of investing.

Shares Have Their Advantages Too

One of the key benefits of shares is accessibility. With many platforms allowing you to start investing with as little as $500, it’s a great option for those without a large capital base.

In contrast, property requires a significant upfront investment, with costs like stamp duty, legal fees, and agent commissions. For those saving for a deposit, investing in shares along the way could help accelerate the process.

Property is a Strong Hedge in Economic Downturns

During tough economic times, people prioritise their rent or mortgage over discretionary spending. Governments also work hard to prevent property market crashes, given the broader economic impact.

Meanwhile, businesses in the share market often rely on consumer spending, making them more vulnerable during downturns.

This is one reason we see property as a safer bet in volatile times.

The Power of Leverage

One of the biggest advantages of property investing is leverage.

Let’s say you buy a $1 million property with a $100k deposit and borrow the rest. If the property increases in value by 10%, you’ve made $100k—effectively doubling your initial investment (a 100% cash-on-cash return).

In contrast, if you invest $100k in shares and the market rises by 10%, you make $10k.

While some investors use margin loans to leverage shares, it comes with significantly more risk, and the borrowing capacity is much lower than in property.

What’s Right for You?

The best investment strategy depends on your personal goals, risk tolerance, and financial position.

No one has a crystal ball, and anyone who claims to know exactly where you should invest likely doesn’t understand your full situation.

A well-rounded investment portfolio often includes diversification across asset classes to manage risk effectively.

If property is part of your wealth-building plan, we’d love to have a chat to see how we can help you make the right moves.