Property vs Shares for a 20 something

[modandm]

before you invest in property do a spreadsheet model for it as an investment - factoring in different interest rates and different rates of capital growth.

When I last did it for my parents I proved buying a property in Glendowie the capital gain needed to be 2-3%p.a to break even and gain/lose about 12k for each % either side. That was factoring in everything including tax benefits on 39% - which is no longer available due to changed laws. That also was self-managed - not professional.

If you do this thoroughly without bias - evaluate the risks and decide it is a good investment - go ahead. Otherwise just keep saving for your first home (not investment). Your own home is generally a good investment provided you pay your mortgage off as fast as you can. I personally tell friends not to buy until they have 50% deposit.

[JBmurc]

before you invest in property do a spreadsheet model for it as an investment - factoring in different interest rates and different rates of capital growth.

When I last did it for my parents I proved buying a property in Glendowie the capital gain needed to be 2-3%p.a to break even and gain/lose about 12k for each % either side. That was factoring in everything including tax benefits on 39% - which is no longer available due to changed laws. That also was self-managed - not professional.

If you do this thoroughly without bias - evaluate the risks and decide it is a good investment - go ahead. Otherwise just keep saving for your first home (not investment). Your own home is generally a good investment provided you pay your mortgage off as fast as you can. I personally tell friends not to buy until they have 50% deposit.

wise words ,,i agree nothing worse that ticking upto the eyeballs to then see low to no Capital growth longer term(likely going forward 10yrs) and negative cash-flow when one could go out and just buy a few high yielder NZX shares 8-12% yield without all the hassle...

IMHO 30k would be invested in 3 different NZX blue chip high yielders or if it was me at the same stage as ENP 20k in high yields 5k in two higher risk high growth plays ASX

Of course I'd keep my eye on the property markets I was keen on and if a sharp deal come up you can aways sell your shares