“I think stocks are ridiculously cheap if you believe interest rates will remain at their low levels.” Warren Buffett A portfolio of Australian stocks yields a dividend income return of 7.5%. Property investment in a home or apartment yields a net rental income of around 2.0%. A 10-year Australian government bond yields 1.0%. “Stocks are ridiculously cheap” when compared to property and bond investments. The question then becomes, will stock prices rise to better equate their returns to property and bond investments? Time will tell, however it’s a nice position to be in owning a prime portfolio of
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What are the advantages and disadvantages of direct stocks versus managed funds? Performance Direct stock ownership allows you to focus on the stocks which you believe offer the best potential returns. If you are right you will outperform the market. Studies show that 92% of managed funds underperform the market, due to their size and high fees. " Size is the enemy of performance." Warren Buffett Transparency With a directly owned stock portfolio you know exactly what you own and your dividend income. Managed funds lack transparency. You don't know what underlying stocks you own, or the income you can
We are experts, with decades of experience working with our high net worth clients in real estate investment. Real estate is one of the safest places to put your money. It never goes completely bust like a business can. Its growth of rental income and property value is driven by population growth, inflation and increasing affluence. There are two ways to invest in property in Australia. 1. Real Estate Investment Trusts (REITs) A Real Estate Investment Trust is a portfolio of property assets listed on the Australian Stock Exchange. You own units in the REIT, in the same way as shareholders
Australia has vast mineral wealth, high living standards, rapid population growth, a stable Western democracy, the rule of law, a AAA credit rating, and is one of the world's preeminent investment destinations. Australia is the world’s 14th largest economy one of the world's largest stock markets, with the sixth largest pool of funds under management in the world rated AAA with a stable outlook by all three global rating agencies, characterised by a government budget surplus and low debt forecast to realise average annual real GDP growth of 2.7% over the next five years – the highest among major advanced economies
All investments carry risk, be they stocks (business failure), property (buildings depreciate, land can become degraded), or government bonds (inflation, low interest rates). In addition stocks and property are subject to market fluctuations which can be sharp, large and unpredictable. This is a fact of life, to be accepted as such if you are to invest in stocks and property. Market fluctuations can also be an opportunity if you have money available. "We simply attempt to be fearful when others are greedy and to be greedy when others are fearful." Warren Buffett Risk isn't the same as volatility. Rather risk is the chance of