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In order to protect and optimise your investment potential there are some important factors to look at. Both sides on the property and shares investment debate have solid arguments when you consider the long-term stability of your investment.
There are positives and negatives with investing in either shares or property and both markets have cycles of growth and downturns. No matter which market you are looking at investing in, you should look at individual factors affecting that investment. The stock market can be sporadic in nature, however, despite property investments remaining relatively stable throughout the Global Financial Crisis, capital growth in the property market is generally much slower. The variance of your investment portfolio is important to consider when looking at an overall balance in your investments.
Investment in real estate within Australia can provide your investment portfolio with long term stability. After years of property investment advice warning of a "market crash" due to over building, population and housing statistics from the last few years show that we are facing a housing shortage, especially in metropolitan areas. If these projections are correct, the housing deficit will continue for a number of years.
Australia's steady population growth, coupled with infrastructure development is a key indicator of the overall health of the Australian housing market. Currently, the property market is undersupplied, largely in metropolitan areas, with the number of people looking for property to rent, lease and buy outnumbering the available properties.
Before investing in property, it is important to look at the bigger picture and ask what the goals of your investment portfolio are, and will this investment compliment those goals? Remember, three main points before looking at the property market: