Property vs Shares in Australia: Which Investment Option Is Right for You?
Property vs Shares in Australia (2025): Which Investment Strategy Fits You?
June 3, 2025
Written by:
Erin Truscott
Senior Financial Adviser
For decades, Aussies have debated the big question: Should you invest in property or shares?
It’s the classic comparison — bricks and mortar vs paper assets. And chances are, you’ve heard arguments for both around the dinner table, at weekend BBQs, or scrolling Reddit at 2AM.
We recently took a deep dive into whether property is still a smart investment in 2025. If you haven’t read it yet, you can check it out here: 👉 Is Property Still a Good Investment in Australia?
But now it’s time to zoom out. This article puts property and shares side by side, so you can see how they really compare — not just in theory, but in practice.
Because when it comes to building wealth, there’s no one-size-fits-all answer. The right choice depends on your:
So if you’re weighing up where to put your money — or whether to mix both — this guide will help you make a smarter, more informed decision.
When it comes to property vs shares, Aussie investors are anything but shy. Reddit threads like
this one reveal just how split the room still is.
Some people lean into the security and control that comes with bricks and mortar:
“Property gives you control. Shares give you freedom.”
Others take a more colourful view — but the point stands:
“It’s like comparing a house to a vending machine — they both make money, just differently.”
For some, it’s about time and headspace. Property means more involvement, while shares offer a simpler ride:
“If you want to get your hands dirty and build equity over time, property works. But shares? You can buy, forget, and get on with life.”
Liquidity — or lack of it — is another big dividing line:
“I like shares because I can sell some if I need cash. You can’t sell a bathroom when things get tight.”
And then there’s the leverage conversation. It’s why many stick with property despite the downsides:
“The only reason I do property is leverage. No one’s lending me $1.2M to buy ETFs.”
The takeaway? It’s not about which one is ‘better’. It’s about what fits your lifestyle, your risk appetite, and your goals.
While it’s not the right fit for everyone, property continues to attract investors — and not without reason. Here are some of the key advantages that make it appealing:
Property allows you to use borrowed money to control a much larger asset. With a $200K–$400K deposit, you can buy a $1M+ home — something you generally can’t do with shares.
Australian property has historically delivered steady growth over the long term, particularly in major cities. Many investors buy with a 10+ year horizon to ride out the cycles.
It’s a real, physical asset. You can see it, improve it, and rent it out. For many, that makes it feel more stable and understandable than paper-based assets.
Negative gearing and capital gains tax (CGT) discounts can reduce the cost of holding a property and boost after-tax returns — especially for higher-income earners.
Property often feels more secure than the sharemarket due to lower daily volatility and its long-term demand drivers like population growth and limited supply in key areas.
Want a deeper breakdown of the risks, numbers, and strategy?
👉 Check out our full guide: Is Property Still a Good Investment in Australia?
Shares — especially through ETFs — offer a compelling alternative to property. For many Aussies, they represent a more accessible, flexible, and lower-maintenance way to build long-term wealth.
You don’t need a six-figure deposit. With as little as $500 to $1,000, you can start investing in diversified assets right away.
Shares are highly liquid — you can sell part or all of your portfolio within days (or even hours), making it easier to respond to life changes.
Investing in ETFs or managed funds gives you exposure to hundreds of companies with a single trade — spreading your risk across industries and regions.
Many shares pay dividends, providing regular income without the effort and unpredictability of managing tenants or maintenance.
Shares are easier to automate and manage. Once your strategy is in place, you can often leave it running with minimal intervention.
This debate came up a lot in the Reddit thread — and as usual, there was no clear winner.
“They’re just different tools. Depends what you’re building, and what kind of investor you are.”
Property appeals to those chasing leverage, stability, and the comfort of owning something tangible. Shares (especially ETFs) are more liquid, easier to diversify, and suit hands-off investors who want flexibility and lower ongoing effort.
Let’s say you’ve got $375,000 to invest. To help illustrate the trade-offs, here’s a simplified comparison of what that might look like over 10 years — either invested in property 🏠 or in shares via ETFs 📈.
You use the $375K as a 25% deposit to buy a $1.5 million investment property. Rental income helps cover costs, but things like loan interest, rates, and maintenance mean you could still be out of pocket — in this example, around $48,000 per year.
If the property grows at 6% annually, that’s around $900,000 in capital gains over 10 years. But those returns come with debt, effort, and the need to manage negative cash flow along the way.
Instead, you invest the full $375K in a diversified ETF portfolio. With an assumed 8% average return (a mix of growth and dividends), the portfolio might grow to around $810,000 after 10 years.
No borrowing, lower ongoing costs, and it’s fully liquid — but without the leverage property provides.
Important: These examples are simplified and don’t include tax, fees, or individual circumstances. They’re just a high-level way to explore how each approach might work in practice — not financial advice.
We help you understand how investing fits into your overall financial strategy — so you can make confident, informed decisions.
Book a no-cost consult to get expert financial advice tailored to you.
“Some people thrive with property — they’re comfortable taking on debt, managing costs, and playing the long game. Others are better suited to shares or ETFs because they prefer flexibility, simplicity, and lower maintenance.”
“Often, the smartest approach is a mix of both. But how you balance them comes down to your goals, income, risk tolerance, and life stage. That’s where personalised financial advice really matters.”
There’s no one-size-fits-all answer when it comes to investing. Property and shares are both powerful tools — but they serve different purposes, and each comes with its own set of pros, cons, and risks.
For many Aussies, the best strategy is actually a blend — using property and shares together to balance risk, boost diversification, and grow wealth over time.
Whatever path you take, make sure it’s one you’ve chosen for the right reasons — not just because everyone else is doing it.
Choosing the right investment isn’t always straightforward — especially with so many options and opinions out there. That’s where clear, personalised advice makes all the difference.
In this short video, Senior Financial Advisor Erin shares how we help clients weigh up their options, from comparing shares and property to building an investment plan that actually supports their goals.
Whether you’re just getting started, working out how to invest smarter, or thinking about diversifying — we’re here to help you move forward with confidence and a plan that fits.
There’s no one-size-fits-all answer — but here’s a rough guide:
Example: $375K invested in a diversified ETF returning 8% annually grows to about $810K in 10 years. That same $375K used as a property deposit might control a $1.5M asset — potentially netting a $900K gain (at 6% growth), but with significant cash flow costs along the way.
Bottom line: Property offers more upside through leverage, but also more risk. Shares are simpler, but rely solely on what you put in.
Not at all — it depends on your goals.
Many investors use both — leveraging property to build equity and shares for liquidity and diversification.
Absolutely. In fact, many financial advisors recommend it.
For example, you might:
A mixed portfolio helps you balance growth, income, and risk.
The big one is negative cash flow. Many investors are out of pocket $40K+ per year, especially early on.
Other risks include:
You need a buffer — and a plan.
Yes, just in different ways.
The good news? Diversified ETFs help spread your risk — and there are no tenants or toilets to manage — but things can go wrong quickly.
There’s no perfect time to invest — only the right time for you.
Ask yourself:
Whether it’s shares, property or both — the smartest move is to run your numbers and get quality financial advice first.
This first step comes at no cost to you—just a quick, no-pressure chat to understand your financial situation and goals.
In just 10 minutes, we’ll answer your questions, explain how we can help, and outline the next steps.
No commitments, no sales pitch — just a friendly chat to see if we’re the right fit.
Fill out the form, and we’ll be in touch to book a time that works for you.
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This is a publication of Direct Wealth Pty Ltd, a wholly owned subsidiary of Direct Wealth Group Pty Ltd.
General Advice Warning – The information contained in this article is of a general nature and does not take into account your particular objectives, financial situation or needs. You should therefore consider the appropriateness of the advice for your situation before acting on it. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decisions regarding any products or strategies mentioned in this publication.
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