There is no doubt that planning for a secure financial future through investment is wise.
Having decided to invest, the next question is 'shares' or 'property'? The answer will depend on your individual financial circumstances, how many years you have before retirement and your comfort with risk.
One benefit of shares is the relatively small amount of capital required to begin investing - investors can purchase shares for under $1000.
However, shares are volatile. There are risks involved. In our recent memory we have seen the stock market plummet during the 2008-2009 global financial crisis and also following the recent earthquake in Japan. Investors went to bed comfortable and woke the next morning having lost huge amounts of money overnight. Many investors will never recover their money in time to fund their retirement as planned.
Property, on the other hand is a secure and stable investment. Although property values peak and trough through a cycle, over the medium to long term property is virtually guaranteed to increase in value. Property values have never been seen to dramatically fall overnight in the way the stock market has. Property investors can relax knowing their investment is safe and secure.
There is greater control over the investment with a property portfolio. Investors have the option to enhance the value of the property through improvements and there are many strategies to make the property appealing to buyers when it comes time to sell. With advice from property professionals such as the research analysts at ParkTrent, investors can predict areas of strong capital appreciation.
With economists highlighting the fragility of many economies globally, the world economy will remain volatile at least throughout 2011 and the immediate future. In comparison Australia's economy is robust, buoyed by the current commodities boom. Combine this with a chronic undersupply of housing for a growing population and property is clearly the wisest and safest choice of investment.
For individually tailored advice about planning for a secure financial future, speak with a ParkTrent professional today about property investment security.
If you would like more information, please contact our Customer Service and Sales team on 1800 652 224 or email contact@parktrent.com.au
