At least this month, people on variable rates will save money on their repayments.

In the constant debate over shares versus property, bricks and mortar have won out… again.

1. You can value add to property just by painting, re-carpeting, new curtains, new bathrooms/kitchens etc which will increase the value of your investment.

2. According to an Australian Property Report, the family home has been the highest returning asset over the past 24 years.

3. Limited Supply – the supply and demand affects the price of properties.

4. Your own home doesn’t attract Capital Gains Tax.

5. Property is simple to understand and trading shares is a profession that includes understanding company reports and technical analysis.

6. You can be in charge of your own investment property – you can see it, touch it and drive past it.

7. Unlike shares, in this point of time in the Stock Market, it is very volatile – up and down like a bungee jump.

According to RP Data’s latest Equity Report, over the five years to June 2011, capital city home values have increased by about 30%, providing a significant wealth boost to most home owners during this period.

It’s interesting to note how the different investments have done over time:

·        Property was found to have generated an annual return between 9% - 12% depending on the location

·        Stocks 8.9%

·        Government bonds 4.8%

·        Commercial property 4.2%

·        Term deposits 3.7%

The result from the equity analysis reveals that only 3.7% of Australian homes are currently valued at a lower amount than the price at which they were purchased.

Homes also held for a longer time frame have accumulated more equity than those held for a shorter amount of time. My strategy is to buy and hold for the long term.

Residential property has proven to be a sound investment choice for future financial security.

Until next time, keep well and be safe and by the way, I waved to the Queen and the Duke as they drove past my home and the Queen gave me a royal wave back.