SHARES? OR AUSTRALIAN PROPERTY?
There are many views and arguments supporting both shares and property. What cannot be denied is the benefit of liquidity with shares.
Or the strength of property to enable gearing and harness the power of leverage.
With that in mind, we have looked at putting exactly the same amount of money into various stock markets, ten years ago, and then compared it to the return today, vs buying a property using the same amount as a deposit on a flat.
The results may surprise you. In each case, we have also used the exchange rate ten years ago, compared to today, and calculated the returns.
Without boring you with all the calculations, we have simply taken the various stock indexes and used the Brisbane apartment index for the comparisons, and ignored dividends, rent, broker’s fees, transaction costs etc.
So, if you had placed HK$500,000 (AUD$84,006) into shares 10 years ago (on 27 July 2006) using the Heng Seng and Dow Jones index, this is what you would have got back....:
Hang Seng HK$656,715 (AUD$113,138)
Dow Jones HK$831,963 (AUD$143,308)
If you had used the same HK$500k as a 20% deposit on a flat in Brisbane, you would have got back today HK$1,512,487 (AUD$605,182) assuming the rent was not cash flow positive and just covered the bank repayments and costs and after you repaid the loan.
Yes, this is about an 84% better return than the Dow Index, and some 322% better than the Hang Seng!
In just ten years.
SUMMARY IN % TERMS
RETURN ON INVESTMENT (on cash outlaid in local currency) past 10 years
HANG SENG +31.34%
DOW JONES +66.39%
BRISBANE FLAT +620%
Now, if you would also like to see how to magnify your returns by Building a Portfolio, using only ONE initial deposit, then receive over USD$100,000, in TAX FREE income for life,
GO HERE www.buy4properties.com
<PS: If you had invested in Singapore’s Straits Times Index you would have done even worse: STRAITS TIMES +17.14%>