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