So which are better, Shares or Real Estate? It is a question that is asked by many investors, and everyone seems to have their own opinions on which is better. Both classes of assets have their advantages and disadvantages. Shares are often a much more liquid form of investment, whereas real estate is generally a longer term vehicle. Shares are also often very volatile, whilst real estate is seen by most, including the banks, as a very stable investment. This is one reason why they are happy to lend us 60%, 70%, 80% of the properties value to invest in it. It is tangible, and it can be seen and touched. It also has a purpose which serves the basic human need for shelter. Below is an example of the leverage potential based on investing ₤100,000 in shares vs real estate.
