This is one of the most debated personal finance questions in Australia. The short answer from GeeVee: for most Australians building long-term wealth, a combination of both is optimal. But if you are choosing just one, here is what the data says.
Property vs Shares — 2026 Comparison
| Factor | Property | Shares (ASX) |
|---|---|---|
| Average annual return (10 years) | 7 to 9% total return | 9 to 11% total return |
| Income yield | 3 to 5% gross rental yield | 4 to 5% dividend yield (incl. franking) |
| Leverage available | Up to 80 to 95% LVR | Up to 50 to 70% (margin lending) |
| Liquidity | Low (30 to 90 day settlement) | High (sell same day) |
| Tax treatment | CGT 50% discount, negative gearing | CGT 50% discount, franking credits |
| Control over investment | High (renovate, develop, refinance) | Low (price set by market) |
| Minimum investment | $50,000 to $100,000 deposit | $500 |
| Tangibility | Physical asset | Paper/digital asset |
When Property Wins
- You can access leverage (a $100,000 deposit controls a $500,000 asset)
- You are in a high income tax bracket and can use negative gearing effectively
- You want control over the asset (renovate, develop, subdivide)
- You are building towards SMSF pension phase and need stable income
When Shares Win
- You need liquidity and cannot tie up capital for 5 to 10 years
- Your investment amount is under $50,000 (too small for property deposit)
- You want geographic and sector diversification without concentration risk
- You prefer a hands-off approach with no tenant or maintenance obligations
Frequently Asked Questions
Has property or shares performed better in Australia historically?
Over 30 years, Australian residential property and the ASX All Ordinaries index have delivered broadly comparable total returns when dividends and rental income are included. Property benefits more from leverage but has higher transaction costs.
Can I invest in property through my SMSF?
Yes. SMSF residential property is one of the most popular strategies for Australians with $250,000 or more in super. The Collings SMSF property guides cover the rules, compliance and strategy in detail. Sign up at collings.com.au/portal.
What is the best way to start investing in property with limited savings?
Consider a guarantor loan (using a parent’s property as security), the First Home Guarantee Scheme (5% deposit for first home buyers), or starting with a lower-priced market (regional QLD, outer Melbourne, Perth metro).
Build Your Property Portfolio
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
