Investment Returns: How Does Property Shape Up?

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

People invest for all kinds of reasons. Some wish to retire earlier, some wish to work part-time and others may want to stop working all together. Depending on how much risk you want to take and what your investment goals are, the types of assets you should invest in will vary. Different assets have their advantages and disadvantages.

High interest term deposit

Let’s start with an example of investing in a high interest term deposit. When investing in this way, the investor may not have access to the interest earnt until the term deposit matures. This could be anywhere between one month, two months, six months or even two years! If you’re looking to supplement your income with regular returns, a term deposit probably isn’t suitable.

Shares

Shares are one of the most popular assets in which to invest. They provide good capital growth, the entry and exit fees are relatively low and in terms of being able to diversify a portfolio, they provide great opportunities. However, shares aren’t the best asset class if you want a frequent and regular income.Firstly, some companies do not offer income in the form of dividends, such as mining companies. For those companies that do offer dividends, the company may withhold them from investors and decide to re-invest any profits back into the company. Secondly, if they do distribute dividends, it will probably be quarterly or every six months. While shares can be a great investment, they may not be suitable for those expecting more frequent returns.

Do you need more detail on this subject? Head on over to the full article for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on 0434 506 909.

Thanks,

Alex