Property vs Shares? What's Best for Australian Retirees?

[@wattlepartners9867]

If you need help in planning or accelerating your retirement, you can schedule a free meeting with Drew or one of our other licensed Financial Advisers here: www.wattlepartners.com.au/contact

[@CallsignEskimo-l3o]

The biggest advantage for shares over property is that the transaction costs are so much less in that you aren't faced with conveyancing costs, stamp duty and land tax.

[@wattlepartners9867]

Good point!

[@tonymar4772]

Hi Drew one of the major considerations missing from your comparison is the significant management cost and time that is required/ involved in property when compared to say managing investment in index ETFs. The need for regular property inspections, fire safety risks, insurance costs, repairs, maintenance and refurbishment costs, depreciation schedules and a whole host of other property management issues. Vanguard dont ring you over the weekend to say your toilet is blocked in your indexed ETF and you need to engage an afterhours plumber!

[@wattlepartners9867]

Great point! Was trying to stay as high level as possible.

[@1985tris1]

Hands down shares are better. The only issue right now is the price is very high at the moment. Seeing the banks only having a yield of like 4 to 5% is just sad. Considering NAB has moved from its usual 25 to 30 aud range now over 40 dollars has in my view is now overpriced. I am not as diversified as i would like to be but i prefer companies who only pay over 6% and with franking. And there are not many of those right now.

[@TheWoodworkerwhopaints]

Great stuff, very informative with pros and cons for both. Would have loved to see a 3 way comparison of Property vs Shares vs Super. As an aside we have an investment property that was purchased about 13 years ago. This was intentionally sourced in a beachside location we intend to retire to. We used it for ourselves and short stay lets for the first 5 years and have had it permanently rented since then. Has it been a good investment in that time is a 50/50 debate. Capital has doubled but has been just slightly negatively geared for most the time. The big winner for us is the strategy we will use to sell our current home (cgt free) which is our primary place of residence and to pump nearly 100% of the proceeds to our already healthy superannuation. We will then move to our beach house and this will be become our retirement home which we won't sell and hence no cgt payable. My kids can sort out the cgt payable after we depart this earth !

[@mjr1965]

You can't compare super to either property or shares. Super is a reduced-tax vehicle and super itself can invest in propert, shares or other asset classes.

[@TheWoodworkerwhopaints]

@@mjr1965 Very true. I think it would still be beneficial to compare the 2 against a standard 'Balanced' super fund return which is where probably 90% of super members have their super invested.

[@wattlepartners9867]

Good idea!

[@dianeridgway8070]

Great video!

[@wattlepartners9867]

Glad you enjoyed it

[@thetwowheeledintrovert3367]

We’re a way off retirement, my wife and I plan to travel between our investment properties. Which to us is part of the appeal. We have currently a 50/50 split between property and shares. Likely property will take a larger portion of our portfolio, over the next ten years.

[@wattlepartners9867]

Thanks for watching!