Inflation is the value of money going down, By owning a Building and land, You are hedging against inflation. Over time you should see your weekly rent and the capital value of the property increasing with inflation (provided you didn’t over pay to begin with)
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That’s true with both property and shares, the market average dividend yield is 4.3%, Margin loans are around 6.9%, so a 100% loan will see shares produces negative cash flow.
that’s a pro and a con, the liquidity has allowed many people to panic sell, locking in losses at the worst times, when holding would have been the best thing to do.
I agree the returns can be awesome in the share market, I can’t see how you can say they are less volatile though.
hopefully you’ll get the chance to own both eventually.
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