If it's not shares it must be property. And if it's not property it must be shares.
Throughout the last seven years we have had a property boom, and also experienced an accelerating share market that even had the mums and dads investing for the first time.
As soon as the share market came off the boil, property became the next hot topic and then that's when the share market was a dirty word.
Timing is so important, and where most people get it wrong is when they don't pick the opportune time to buy and sell. When mixing up the portfolio so as to spread the risk, you should adapt both a long term strategy to some of your investments, and a short term to others.
Cash flow is the most important factor when servicing these investments, so be sure that you have factored in higher interest rates, vacancy rates and maintenance issues. The idea is to hold these investments through good and bad cyclical times, and should things get a little rocky you need to be in a position where you can sustain the investment without having to sell it.
Shares seem to be looking very attractive lately and are very liquid should you want to move them quickly for that Holiday you've always wanted in Tuscany, and have been returning over the last twelve months anywhere from 10 to 26%.
People will always have a love affair with property; you can touch it, feel it, drive past it and admire it. It has proved to be a winner time and time again, over a ten year period, and will always be a true love for the Australian investor.
Good solid blue chip shares should be part of everyone's portfolio, and some smart property investments should follow. Incorporate that with a long term hold strategy, and you should see yourself with a tidy little nest egg come retirement.
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