Property vs Stocks: The Leverage Advantage
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This is the reason why property is a better investment than stocks for most Australians.
The long term average return of the S&P500 is 10% per year. Which means if you invest $100k,
then you gain $10k a year on average. The long term average return on Australian property is 6.5%
per year, let’s use 5% a year. If you put a $100k deposit on a $500k neutrally geared
investment property, then you’ll gain $25k a year on average. $25k vs. $10k, it really is that
simple. Want to know how to find neutrally geared properties, how to beat the
market or anything else investment property related? Book a free discovery call with PropAI,
link is in the bio.
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