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Investing in Property or Shares in Australia

by Olivia Bayly 4 months ago in personal finance
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Investment In Australia

Investment is something anyone with sound financial foresight always considers. However, the choices here are just way too many. Do you invest in gold? In crypto? Or maybe property? As we said, the choices here are virtually endless. Since the choices are so many and financial planning in Sydney so important, maybe narrowing down some options could prove to be really helpful. We can start by talking about two very important choices, the stock market and property. Both can be very volatile over an extended period of time. This adds to their risk factor but some people like taking risks with investment while some like to play it safe. Let's compare the odds of successful investment in both of these places.

Investment In The Stock Market In Australia

The stock market is characterized by several important factors. The first is fluctuations in the value of shares. Because of this, the other factor, which is  volatility, increases greatly the moment there's a slight change in price. Many investors are wary about investing in bonds and stocks because these can similarly affect one's portfolio. Still, some have gone on to earn a lot from investing in these instruments whereas others have lost big time. The key here has to be investors' knowledge and grit. It may not support you right away but in the long term, meaningful investments could lead to big gains. One must have patience while attempting to invest.

Investment In Property

Property is a much safer investment. It offers low to moderate levels of volatility and low risks of big losses or gains. You can always sell your property if you want but unlike the stock market, there's a lot more certainty about how much profit you stand to receive from selling. Unlike the stock market, investing in property can be really easy and convenient. Just like what we mentioned earlier, real estate investment is something everyone must consider if they want to secure themselves against financial difficulties in the future. Once you have invested in properties, it is guaranteed that you will not be hungry for years on end again as this investment does not require any additional investments and can prove to be very lucrative for years.

Advantages Of Investment In Stock Market

Financial planning in Sydney often leans towards investment in the stock market like in many other places. It is safe to say that it has its own pros and cons. Let's discuss some of the advantages of investing in stocks over the property.

  • Trading Hours

The first and probably the biggest advantage of investing in stocks is that they are a lot more accessible compared to real estate. You can choose to invest in stock markets during trading hours. This means that you can actually profit from day trading which has proven to be profitable for many investors out there. Stocks open for trade at 9:30 AM and close at 4:00 PM before the weekend. You can invest at this time as long as you don't need your money at that moment. Unlike some other options, if you want to put stop loss or buy shares of certain companies, it is possible with stocks too.

  • Capital

Another big advantage of investing in the stock market is that you do not have to spend any additional money when it comes to investing. The only money you need is your own. This way, it gives an investor much more freedom and flexibility in terms of where their money will be placed. Some investors are cautious about putting all their eggs in one basket like this but most people don't worry about this at all. It is easy for some investors to lose everything anyway because of poor planning and not being careful enough with how they invest their capital. If you want to invest your capital, there's no one stopping you from doing that whether you are rich or poor just like in the real world.

  • Expanding Capacity
  • Additionally, you can invest in different stocks without having to spend that much money. For example, if one stock does not provide the profit you want or expect, you could switch to another one anytime. This is what experts call expanding capacity and investors usually strive for it to have a diversified portfolio. Some do not care about this and simply stick with only one kind of investment but for those who are really serious about investing as well as financial planning in Sydney, this could be important.

    Advantages Of Investing In Property

    Property is also a viable and yet fairly expensive option. While you can start investing in stocks starting from a dollar, the same does not obviously go for the property. There are, however, some advantages. Googling 'financial planning near me' could really help you decide.

  • Real Estate Investment
  • There are many people who would not want to earn the interest they get from their money no matter how big the investment is. It is possible to accumulate something when buying real estate, but it takes a lot of time because of how expensive it can get. Even with the best timing, you will see that the amount of capital you get after years on end would not be enough. However, if you choose property as your investment and asset, you will then realize and earn a lot of benefits from this. For example, if your investment goes up by 10% every year for 40 years, then it can lead to $1 million in total.

  • Low Risks
  • Investment in real estate is usually a low-risk investment. This means that you won't end up with little to no capital as you have in the stock market. In fact, you could sell your property after some time and still get a decent amount of money out of it. The only thing is that if it sits on the market for too long, then it might not get sold at all. Property investment guarantees you a return over the long term which is why many love this option despite its decreasing popularity recently.

  • Steady Income
  • Property investment is also great because it provides steady income. Unlike stocks, investing in real estate can bring you a steady income without having to do anything by yourself. Do keep in mind, that even in properties, only worthwhile and smart investments can bring about profit.

    Conclusion

    In the end, it must be noted that both sorts of investment options have their own risks and gains. Financial planning in Sydney is no joke and needs to be done with care and precision if anything good is to come out of it.

    personal finance

    About the author

    Olivia Bayly

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