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When it comes to building long-term wealth, investing is one of the most effective tools. But deciding where to invest can be daunting. Should you put your money into property or shares… or both?
In this blog, we explore the differences between investing in property and stocks and which might be the better fit for your financial goals
Why Do People Invest?
Investing is more than just growing your bank balance, it’s about planning for the future. People often invest to:
- Build wealth for retirement
- Create generational wealth
- Reduce tax obligations
- Establish a financial safety net
The right investment strategy can help turn today's income into tomorrow's security.
This blog is intended to provide general information only. It does not consider your personal financial circumstances or objectives and is not financial advice. Please speak with a qualified financial adviser before making any investment decisions.
Property vs Shares: Key Considerations
When considering different types of investments -such as shares or property -it’s important to reflect on your personal goals, financial situation, and risk tolerance. Each option has its own characteristics, benefits, and potential risks. Property investments may allow for leverage through a mortgage and can offer rental income, but they generally involve lower liquidity and can be influenced by local market conditions. On the other hand, investing in shares can offer diversification and the potential for passive income via dividends, but market volatility and emotional decision-making can impact outcomes.
This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for your circumstances and seek professional advice before making investment decisions.
| Feature | Property | Shares |
| Capital Growth Potential | High (location dependent) | High (company performance based) |
| Liquidity | Typically Low | Typically High |
| Passive Income | Rental income | Dividends (subject to company performance and distribution policy) |
| Upfront Costs | High | Low |
| Risk | Medium (market & interest rates) | Varies (linked to market volatility and company performance) as well as the investment risk profile |
| Time and Effort | High (management required) | Low (especially for passive investors) |
| Asset Tangibility | Tangible | Intangible |
Which Is the Right Type of Investment?
There’s no one-size-fits-all answer. Your best investment approach will depend on your financial position, time horizon, and long-term goals. Many Australians choose to diversify, investing in both property and shares for a balanced portfolio that provides various income streams and risk buffers.
Getting Started with Investing
Whether you're leaning towards real estate or the stock market, it's important to have a clear strategy.
Property Investors Might Consider:
- Location: Is the area growing? Are there infrastructure developments?
- Vacancy Rates: How likely is it that your property stays tenanted?
- Capital Growth Over Cash Flow: Choose areas with strong long-term growth.
- Leverage: Use equity smartly to grow your portfolio.
- SMSF Investment: Property can be included in a self-managed super fund (SMSF).
Need help with the steps to buy a property? We've got you covered.
Share Market Investors Might Consider:
- Dollar Cost Averaging: Invest regularly to manage risk.
- Active vs Passive Investing: Choose based on your time and expertise.
- Smart Picks for 2025: Blue-chip stocks, ethical ETFs, and tech companies show potential.
Learn more about how to invest in stocks with our helpful guides.
What Sectors Are Attracting Attention in 2025?
Many investors in 2025 are looking toward long-term, resilient sectors. Areas of interest include:
- Established Australian Companies (often called blue-chip stocks) in industries like banking, healthcare, and resources.
- Ethical & Sustainable ETFs that align with responsible investment themes.
- Technology & Innovation sectors such as AI, renewable energy, and cybersecurity.
These types of investments may offer a mix of growth potential and diversification - but also carry risk and should be considered carefully.
Building a Balanced Investment Strategy
So, which is the right type of investment? The truth is, both asset classes can play an important role in a well-diversified portfolio. Depending on your financial goals, risk appetite, and timeframe, a combination of both may help you achieve long-term growth and income stability.
This is where a trusted financial advisor can make all the difference. At Inovayt, we help clients tailor investment strategies that align with their goals, risk tolerance, and financial timeline.
We also work closely with experienced mortgage brokers to streamline the process of purchasing an investment property.
Need Help Choosing the Right Investment Strategy?
Whether you’re buying your first home or building a share portfolio, Inovayt is your partner in smart investing. Our advisors will work with you to create a personalised plan, backed by data and experience.
Ready to take the first step? Get in touch with Inovayt today and access the financial advisor help you need to make confident, informed decisions.
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for your circumstances and seek advice from a qualified financial adviser.
Inovayt Wealth Pty Ltd Corporate Authorised Representative No 435348.
