Gearing: Shares vs. Property

Gearing: Shares vs. Property

share market, property, finance

Having recently reviewed the book, The Australian ETF Guide by David Bassanese, I was intrigued by a conversation I had with Peter Moussa from Leveraged, a fully owned subsidiary of Bendigo and Adelaide Bank regarding leveraged ETFs.

Traditionally investors have borrowed to purchase property and paid cash for shares. I have found that the general consensus among authors of Australian share investment books is that borrowing to invest in shares increases your risk profile in what can be a volatile market. In addition the retail investor will have higher borrowing costs and may be subject to margin calls and strict rules of trading.

In his article, Peter presents an alternative means of leveraging into shares through the use of leveraged ETFs.

I hope you enjoy his article, Gearing: Shares Vs Property.

Glenis Phillips, F Fin

Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products. The article ‘Gearing: Shares Vs Property’ is the opinion of Peter Moussa and not necessarily that of Financial Mappers.

I am a founding board member of Plencore Wealth Ltd and Plencore Online Pty Ltd. I am the designer of the product Financial Mappers and Financial Mappers PRO, cloud based modelling software for Personal Finance. This software is sold on the web site www.financialmappers.com.au.I am an educator, investor and expert in both personal finance and mathematical modelling and the author of 'Map Your Finances'.I have both a Graduate Diploma in Applied Finance and Investments and a Diploma in Financial Advising from the Securities Institute of Australia. I also have a Financial Analysis Certificate, by Distance Learning from University of Technology, Sydney. I am a Senior Fellow and Senior Mentor of FINSIA.
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