I assume you're talking about a $10000 deposit to buy a $100000 property... How much do you pay to buy that property [stamp duty, loans setup, transfer costs, settlement fees, title searches etc etc] and how much do you pay to own that property for a year?
I can justifiably add that plethora of costs to the share side of the comparison [because the share buyer doesn't have those outgoings!] Would another ten thousand dollars be in the ball park?
therefore, you'd have $20000 in hand with which you could buy a $100000 portfolio of, say, ten blue chips at total brokerage of about 2 hundred bucks on a diversified margin loan which costs zero dollars to set up. And zero dollars to own for the year.
then in the second year, you fork out another 5 grand for ownership, while the share investor adds $5000 to his portfolio.... and so on.
So, in the first year, your $100000 property has to make ten grand to break even, the shares have to make 200 bucks.
