Cash, shares or property? Report finds winner for past 10 years
Residential property has been the highest returning asset in Australia during the past decade, according to a report from Russell Investments. The “Long Term Investing” study found residential investments “outperformed all other asset classes at the lowest and highest tax rate at 7.2% p.a. and 5.8% p.a. respectively.”
Cash in the bank was the clear dud with the lowest returns.
Of course we’re all wanting the definitive answer on the next 10 years. But one clue lies in the title of their study. Much of the 2000’s have given us all false hope that assets will continue to surge in value, rather than creep and sneak up as they did during the 1990’s.
Our accountant tells us the after-tax cost of owning a Brisbane investment property is often around 1% to 1.5% of its value. So if it goes up more than that, you’re ahead. There’s a third of our population that rent so the government says it can’t mess with the tax incentives.
Where do you think the best investment returns will be during the next decade?