lcy versus real estate

If I was considering placing a deposit on rental real estate to achieve a capital gain OR looking at an investment in a resources growth stock like Legacy Iron, the decision would be easy.

LCY would easy win the comparison.

I know that I would not achieve 100% gain on my investment stake in real estate in the next 12 months, in fact I would lose money (negatve gearing). I also know how complex that property investment would be.

If I invested in iron ore resource co Legacy Iron, kaving done my research on the company, including reading the company reports published on the ASX & some of the press articles, then I would have a fair idea of the likely capital return on my investment.

LCY wins easily.

# Low transaction costs ie no heavy state stamp duty on purchase.
# Plenty of liquidity in LCY versus complexity of selling a property.
# Ability to sell a few thousand shares for some short term access to cash.
# Regular updates on the progress of the company's proving of its resource base.
# No rental/tenancy issues.
# No property maintenance issues.

Sure, this comparison does not directly work with all up & coming resource companies, but LCY is at a stage where it has a proven JORC resource, and drilling continues. The Mt Bevan iron ore resource has proven access to Port Esperance via rail. (that's important).

Mt Bevan is just one of Legacy's treasures.

There are a number of joint venture partnership opportunities for LCY. The Indian Govt firm - NMDC has an MOU - memorandum of understanding with LCY, other possible JV partners are the neighbour Jupiter Mines, various Chinese firms & many other iron ore producers.

So, if you had a sizable deposit, would you tie it up in property or invest in LCY ?

Not a difficult one to answer ..............