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Which is Currently the Best Investment – Stocks Or Property? It’s a very strange economic climate at the moment with stocks at very low levels, property prices well off their peaks, oil prices down, and commodity prices down as well. So if you were looking to invest your money somewhere, which is the better investment – stocks or property? Well the first thing I would say is that I don’t personally think there’s any need to quickly throw your money into either market because I think both property and stock prices could fall further in the short term. However it is a good time to start thinking about where you’re going to invest your money when the time comes. I personally have always been drawn to stocks more than property. Both stocks and property can be potentially very lucrative investments but the trouble with property is that it requires a lot more of your time and money whereas shares are more of a hands-off investment. For example if you are looking for a regularly rental income from your property then you need to find tenants and take care of any issues that may arise throughout the year, including taking care of running costs and maintenance. Also if you don’t find any tenants, then you won’t receive any income from your property. With shares you simply buy the shares and if the company pays out a dividend, then this dividend goes straight into your share dealing account automatically. The major drawback with share investing is that you have to pick quality companies that grow their earnings and dividends every year. If you pick a bad company you could lose money on your investment and the worst case scenario is that the company goes bust and you lose your entire investment. Property is of course a less risky investment in this sense because every single property tends to move broadly in line with the overall market, and in the long run property prices will always appreciate in value. The stock market also tends to increase in the very long term but you still need to pick quality companies. For that reason it’s very often best to take a Warren Buffett approach and only invest in huge market-leading companies that have a long history of increasing their earnings and dividends each year. If you do this and buy into these quality companies when they have fallen with the broader market, such as now, then you should find that share investment outperforms property investment quite easily, particularly if you reinvest any dividends. So my own view is that high quality shares that are currently trading well below their true market value based on historical price/earnings ratios are a much better investment than property, although it should be pointed out that both share and property prices will be a lot higher than they are today at some point in the future. Click here to read James Woolley’s review of ADVFN and to read his full INO TV review. Tags: Currently, Investment, Property, Stocks, Which View this post on my blog: http://stocktips.valuegov.com/which-is-currently-the-best-investment-stocks-or-property/