Sector it was just an example. Property vs other investment...

  1. 96 Posts.
    Sector it was just an example. Property vs other investment classes. TLS was just an example, but i was trying to pick a highly defensive stock. certainly some have seen their money washed away in weeks, but what about those that also bought a few years ago sub $3? (by a fluke i was one, not at all to gloat, i also bought FMG at $4.40).
    all i am saying is that the majority of residential property is not a good investment on the assumption you purchased it at market value. high entry and exit costs mean it cannot be short term, it is illiquid, and has barriers of entry. it also ties up large amounts of capital.
    starting out, i think many young aussies would be better to purchase a balanced and defensive share portfolio and look to buy a property later on. i have a number of friends who have purchased houses and had to make huge sacrifices to their lifestyles, i am concerned what happens when interest rates increase in time.
    by the way, just because you own the house physically vs owning shares "in the air" does not make you immune to market conditions. what control do you have other than selecting a tenant? market dictates the return paid there.
    PS regarding the name, you responded to a query i had to Justis about his maths, sorry if i was wrong.
 
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