Investment in residential property remains the safest bet since twenty years
Posted on | June 23, 2010 |
A study carried out by Australian Securities Exchange Long Term Investment Report and Russell Investments led to certain significant revelations. The study revealed that property delivered outstanding results for the last two decades, to December 2009. In addition, residential property returned to an average of 7.2% and 9.8 % during the same time-period.
The performances are based on actual returns that consider the costs involved in every investment and tax paid on income. Russell consultant Stanley Yeo maintains that after-tax results are extremely important to investors. However, many investors do not include their impact while evaluating the overall returns.
“It is important for investors to consider that tax is essentially a cost of investing. Our results show what a significant difference it can have on the end outcome for investors,” Mr Yeo says.
For instance, the latest results were switched on a pre-tax basis. The maximum average annual return of 9.8 % was attributed to property sector. The returns were slightly greater than the return of 9.7% from shares.
During a short time-period of ten years, residential property also assured the best returns, before as well as after tax.
Mark Forytarz and Paul Castran, the two renowned people associated with the famous real estate enterprise Castran Gilbert have a lot of experience in the industry. Both of them have presided over many real estate sales. Paul Castran and Mark Forytarz share their views about the events taking place in the real estate segment.
Investment returns (20 years to December 2009)
After tax (Top tax rate)
Australian bonds 4.5%
International shares 3.4%
Listed property trusts 5.6%
Residential property 7.2%
Australian shares 7.8 %
(Lowest tax rate)
International shares 4.3%
Listed property trusts 6.7%
Australian bonds 7%
Residential property 8.8%
Australian shares 9.9%
Before tax
Australian shares 9.7%
Listed property trusts 7.5%
Residential property 9.8%
Australian bonds 8.9%
International shares 4.8%
Tags: mark forytarz > mark forytarz realestate > paul castran > paul castran realestate
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