Thoughts on real estate vs stock market

Great question, and congrats on the business success!

Lots to consider… here’s a few thoughts…

— Can you afford to tip more money into holding the property each month? Most Aussie rental properties are negative cashflow after costs, so signing up to a mortgage + expenses is a long term commitment.

— Will banks see you as a safe borrower? If you’ve only just begun earning decent income, banks will want to see a longer history of this income to base your loan repayments off, just to make sure they think you can afford it.

— The benefits of leverage with property are pretty big, since you can potentially get decent gains by using the banks money rather than your own. But buying/selling costs are high, cashflow is often poor, and growth cycles are often unpredictable.

— The simplest option is shares, and something like an index fund. You don’t have to add anything extra to it if you don’t want to, but the option is always there if you keep having success with your online business.

— Are you able to leave the money invested for at least 5 years in the stock market? If so, it could make sense. Are you able to hold for 7-10 years with property? I say longer for property due to the extra costs involved + ongoing, which both impact the return needed to breakeven.

Both are excellent options, so if you don’t have any debt to repay and have an emergency fund in place, both of these places are likely to be fruitful places to invest your money.