Companies quite often don't pay dividends so that they can use those monies to expand their business. More shop fronts for e.g. Not paying a dividend doesn't mean the share price doesn't rise. A little different to a tenant trashing your IP and not paying rent I feel.
Shares vs Property
- Thread starter Harro
- Start date
and the never ending cycle of debates continues.
Pitty there wasnt such robust rebates during the GFC
Pitty there wasnt such robust rebates during the GFC
Yes, and as for LICs buying them at a hefty discount during the GFC effectively meant buying the underlying companies at a absolute bargain price. As for investing my motto is buy good assets like crazy during periods of gloom, then forget about it whilst enjoying life until the next crash/major downturn occurs. Then repeat the process......
But does he mainly have residential property or commercial property?
and your point .......
Check out the title of the thread ...
Cliff
It was just a question, not making a point as such.
But, most discussion on here is about residential property from mostly residential property investors, rather than commercial property.
And if you are to have a worthwhile debate on shares vs. property you should appreciate at least that there are very different classes of property with different growth and in particular income characteristics.
Just out of interest do you know the answer to the question posed (it was not a rhetorical question)?
I think you will also find the same in equity markets if one has the mental ability to look upwards from 10 cents per unit,that pay nothing and sometimes go back into 2 cents,up too $70.00 and above that pay above 10% fully franked,effectively the division of knowledge.
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The only upside with equity markets is they are very liquid from a sales angle maybe a 36 hour turnaround,property is ok in a limited supply market come a oversupply market then that's a total different market that few have seen..imho..
Ride the next wave
How about a foot in both camps?
With all the talk of a (ka)boom, who has considered investing in building supplies eg: Boral, James Hardie, Brickworks etc?
I read today that Beacon Lighting is about to float as well: http://clients.criticalimpact.com/g...24326&jid=0ff1d4f68d4476cb&d=7e081819eb51bc57
In the current state of flux with both shares and property values rising is there value in investing in the food chain whilst decreasing the exposure?
How about a foot in both camps?
With all the talk of a (ka)boom, who has considered investing in building supplies eg: Boral, James Hardie, Brickworks etc?
I read today that Beacon Lighting is about to float as well: http://clients.criticalimpact.com/g...24326&jid=0ff1d4f68d4476cb&d=7e081819eb51bc57
In the current state of flux with both shares and property values rising is there value in investing in the food chain whilst decreasing the exposure?
There is a bit of talk about 'dining boom' but I think it would be a slow increase... not a 'boom'!
Ahh.....including franking credits. Should read more carefully.
RC
RC
I have no magic 8 ball so I used Google, as he is my friend
Google (AU) says..
Shares "Made money"
About 1,260,000 results
Shares "Lost money"
About 2,130,000 results
Make of that what you may, including my parameters and the fact that bad news sells
For additional fun, I tried
Property "Made money"
About 689,000 results
Property "Lost money"
About 893,000 results
Ditto re parameters, other searches may yield different results
Google (AU) says..
Shares "Made money"
About 1,260,000 results
Shares "Lost money"
About 2,130,000 results
Make of that what you may, including my parameters and the fact that bad news sells
For additional fun, I tried
Property "Made money"
About 689,000 results
Property "Lost money"
About 893,000 results
Ditto re parameters, other searches may yield different results
I was talking about LICs.
This is a bit old (Mar 2013) but will give you an idea. Current yields are a tad lower due to last year's growth.
I like both shares and property and have done well out of both over the years.
I'm currently doing the figures on whether to buy another property or put the money into shares.
As my wife is not currently paying any tax so which ever way we go it will be in her name.
The property I'm looking at is $230,000 rented for $300/wk and the net yield is 4.8%. With a 20% deposit it's basically neutral.
I can borrow the $230,000 against an existing property and buy a portfolio of high yielding blue chip shares. Min 5% net yield with a fully franked dividend. (anz, cba, wbc, tls, wow, wes etc)
So including franking credits a yield of around 8.5% seeing as she is currently paying no tax.
With shares I can diversify between many different companies in a range of different sectors.
If I buy the property I'm buying one house in one town.
Imagine putting all the money into just one share!
In my opinion you need to keep a balance of both.
Shares provide growth, yield and liquidity. Property gives stability and the ability to leverage.
They compliment each other, so why not have both?
RC
I'm currently doing the figures on whether to buy another property or put the money into shares.
As my wife is not currently paying any tax so which ever way we go it will be in her name.
The property I'm looking at is $230,000 rented for $300/wk and the net yield is 4.8%. With a 20% deposit it's basically neutral.
I can borrow the $230,000 against an existing property and buy a portfolio of high yielding blue chip shares. Min 5% net yield with a fully franked dividend. (anz, cba, wbc, tls, wow, wes etc)
So including franking credits a yield of around 8.5% seeing as she is currently paying no tax.
With shares I can diversify between many different companies in a range of different sectors.
If I buy the property I'm buying one house in one town.
Imagine putting all the money into just one share!
In my opinion you need to keep a balance of both.
Shares provide growth, yield and liquidity. Property gives stability and the ability to leverage.
They compliment each other, so why not have both?
RC
At what price would you buy enter any of these stocks?
If he only cares about the yield, and probably wont exit, then I imagine doesnt care about entry
Yeah sort of. I dont work out a price that I'm prepared to pay.
I'd put half the money in and then keep adding on the dips to lower my average cost.
That's the most important thing with shares IMO. Keeping some powder dry.
You dont want to be just "riding out" the falls in the market, you need to use those opportunities to average your price back.
RC
I use both shares and property and generally apply the same principles to both. Long term buy and hold. I very typically leveraged to the hilt in my "youth" in blue chip properties and as I made heaps of equity, started to invest in simple low cost / high yield managed share fund/s (without leverage). I'm still weighted heavily in property but the balance will improve as I get older. There's something quite elegant about receiving those quarterly dividend payments without any associated property management issues.
But I will always have both. It's not one or the other. I could never predict which asset class will do better at any point in time and not interested in working it out.
But I will always have both. It's not one or the other. I could never predict which asset class will do better at any point in time and not interested in working it out.
