Property vs Shares: Which is the Better Investment?
When it comes to building wealth, two of the most common pathways are property and shares. Both have made countless Australians financially secure and both come with their own risks and rewards.
So, how do you decide which is right for you, or whether a mix of both is the smart move? Let’s weigh up the pros and cons of property vs shares.
Investing in Property
Pros
Tangible asset: Property is something you can see, touch and even live in, which makes it feel more secure for many investors.
Leverage opportunities: Banks are often more willing to lend larger amounts for property, allowing you to use borrowed money to grow your investment.
Capital growth: Australia’s housing market has a strong history of long-term price appreciation, especially in capital cities and high-demand areas.
Rental income: An investment property can generate a steady rental stream to help cover your loan repayments.
Tax benefits: Negative gearing and depreciation deductions can reduce your taxable income.
Cons
High entry costs: A deposit, stamp duty, legal fees and ongoing costs (insurance, maintenance, rates) mean property requires significant upfront capital.
Illiquidity: Unlike shares, you can’t sell off part of your property if you need quick cash. Selling can take months.
Concentration risk: A property is usually one large investment in a single location, leaving you exposed if that market underperforms.
Ongoing responsibilities: Tenants, repairs, vacancies and property management all add complexity.
Investing in Shares
Pros
Lower entry point: You can start investing with as little as a few hundred dollars, making shares accessible for almost anyone.
Liquidity: Shares can be bought and sold quickly, giving you flexibility if your circumstances change.
Diversification: With shares, you can spread your investment across industries, sectors and even countries.
Dividend income: Many Australian companies pay regular dividends, which can provide income as well as growth.
Franking credits: Australian investors benefit from franking credits, reducing tax on dividends.
Cons
Volatility: Share prices can swing daily, sometimes dramatically, which can be stressful for investors.
Less control: Unlike property, you don’t get to influence company performance.
Behavioural risks: Emotional decisions during market ups and downs (selling at the wrong time) can erode returns.
Lower leverage: While margin loans exist, they’re generally riskier and harder to access than property lending.
Property vs Shares: Which is Right for You?
There’s no one-size-fits-all answer. The right choice depends on your:
Financial goals (long-term growth vs passive income).
Risk tolerance (comfortable with market swings vs preferring a tangible asset).
Timeframe (shares can be flexible; property usually requires longer holding periods).
Cash flow and borrowing power (property requires more upfront capital, while shares allow smaller, more regular investments).
A Balanced Approach
Many Australians choose a blend of both. Property can provide stability and leverage, while shares add diversification, liquidity and compounding growth potential. A well-structured financial plan often combines the strengths of each to reduce risk and increase opportunities.
How Maher Group Can Help
At Maher Group, we work with clients across property and investment strategies every day. Whether you’re considering your first investment property or looking to diversify into shares, our financial experts can help tailor a strategy that aligns with your goals.