Sunday, May 2, 2010

A mate has several investment properties (each property wort

Question: A mate has several investment properties (each property worth around $450,000-) where he makes a net yield of around 3%. On the other hand I've noted some quality ASX listed companies (eg. CBA, WBC, QBE, NAB, ANZ, WDC, AMC, etc) most with gross yields above 6%. Assuming there is no capital growth over the next 5 or so years for the above shares or property, then do you agree that I would be better off buying the above shares because the yields are much higher?

From: charles

1 comment:

Toop&Toop Real Estate said...

Charles, this is exactly what we will be debating on Wednesday. Property has such a core value to it and is easily understood, and it is never worth nothing! Anyone who has been in shares for any length of time has experienced a total melt down of a share price and has seen how fast it can occur, property lumbers along and the fact Banks love it as collateral really says it all...."safe as houses".

Tune in Wednesday and hear the debate, should be interesting.

Anthony