There really isn’t an answer because a lot of it comes down to your personality, preferences, and style. It also comes down to the specifics of the individual investment.
Let’s begin by looking at each type of investment:
At the end of the day, it all depends on your goals and what you want from your investment. Are you looking long term or short term? Do you want low risk or high risk? Do you have a large amount of capital to invest right now?
In order to help you decide which approach suits you best, here is a list of pros and cons for investing in property or shares.
Investing in property is often seen as the ‘safer’ and less volatile option. Everyone needs a home to live in, and the demand for housing is only going to increase as the population numbers grow. However, investing in property requires a longer term approach and you are unlikely to make money overnight.
When it comes to property investing, you need to watch the property market carefully and invest in a good location. As they say, “it’s all about location, location, location.” You might find the perfect property, but if it is not close to transport, shops and amenities then it might not go up in value, or may only grow very slowly. It pays to do your research.
People often perceive investing in shares as the riskier option due to higher volatility and the fact that you could potentially lose all your money if things went belly up. Many people find shares harder to understand, and those in the know or who like to gamble prefer to hold shares.
Although some shares should be held over the longer term, many people look at shares as a quick win and short term approach.
Overall, whatever option you choose, you need to remember there is always a degree of risk involved. Diversifying into different property markets or shares can help to spread your risk so you don’t lose your whole investment. As the age old saying goes, “Don’t put all your eggs in one basket”.
“If you are looking at investment for the longer term, then I would suggest investing in property due to the property market being more stable and less volatile compared to shares. By choosing the right property, in the right location you will be on the right track to making money”.