INVESTING
The Highlights
Comparing Property to Other Asset Classes
SHARES
BONDS
INVESTING
The Highlights
• Property compares favourably to other assets: With combined returns of 10- 20 % per year, property offers higher stability and control than shares, bonds, or crypto.
• Property investment offers dual income streams: Rental income and capital growth, providing powerful returns through both cash flow and asset appreciation.
• Leverage boosts property returns: Using borrowed funds can dramatically increase your ROI, with annual IRR typically ranging between 15- 25 %.
Comparing Property to Other Asset Classes
Let’ s compare four key investment asset classes- property, stocks, bonds, and cryptocurrency- each with its own set of advantages and disadvantages, to help you make informed investment decisions.
SHARES
• Typical Returns: 7- 10 % per year( average over time)
• Pros: High liquidity; Steady dividends; Diversification can reduce risk; Growth potential for substantial capital gains
Cons: Market volatility & fluctuations; Economic factors, political events & company performance impact share prices; Complexity of understanding markets, and lengthy analysing
BONDS
• Typical Returns: 3- 6 % per year
• Pros: Stable & predictability; Offers a fixed interest rate, stable income; Diversification can reduce portfolio risk; Cushion against market volatility provides a more balanced investment approach
• Cons: Challenges with interest rates; Highly responsive with interest rate changes; Complexity, requires time & effort to understand markets
28 REI MAGAZINE APRIL 2025