Updated December 2020

Should you invest in shares, property or both?
Have you got investing favourites or biases?
You can work out what’s best for you by asking these basics that financial planners and advisers ask.

What’s your:

• financial position?
• investing time frame?
• personal preference?
• risk profile?
• goal/s?

Get help answering these questions with the planning and self assessment tools available from the government organisations, Analysts and Commentators and other experts in Wealth Creation and Wealth Gurus BiG has found. Often their guides are free, they just want your email.
At the end of this post are some sample planning tips and tools.

Should you buy shares or property?

Your circumstances and answers to these questions will help you decide what you’re interested in and what’s best for you to invest in.
Here are some arguments for and against buying property or shares that experts and others point out.

Shares

• liquidity 
• low entry and exit costs
• little active management
• you can buy into the property markets through vehicles such as real estate investment trusts (REITs/(Australian) AREITs) and Exchange Traded Funds (ETFs)

Some ‘cons’:

• volatility and risk
• lack of personal control and ability to add value
• too much or too little knowledge and understanding about the company, its business, its board and management

Property

Some ‘pros’:

• familiarity, you can see, feel and understand residential property especially
• DIY add value (subdivide, renovate etc)
• DIY management
• lot of real estate experts, information, courses and other resources (eg Property Buyers agents)

Some ‘cons’:

• the advice financial planners can give on direct property investing is restricted. It’s often then left up to you
• not liquid – buying and selling take time, not instant and costs are high (stamp duty, conveyancing, advertising, agent fees)
• pressures on borrowing, affordability and capital growth
• property bubbles
• needs active management
• vacancy and tenancy risks

Here are some links to financial planning sites and self assessments tools to guide you:

• MoneySmart (ASIC): Develop an investing Plan (short, long term and retirement)
• Australian Central Savings & Loans: Secure your future with a sound financial planning strategy 
• Money Buddy: Investment properties pros and cons – a Money Buddy guide
• Mortgage and Finance Association of Australia (MFAA): Consumer education – School Entrepreneurs Programme and Global Money Week