Shares trump property over 10 years

Research commissioned by the Australian Stock Exchange shows that an investor would have gained more by putting money into shares, particularly listed property trusts, over the past 10 years than into residential property. The Investment Sector Performance Report showed that LPTs and shares came in as the best after-tax performers over the decade to December 2002. Cash and fixed interest investment came in last.

The report measured six major asset classes for before-tax and after-tax returns. LPTs fared best, ranging from 10.7 per cent per annum for the lowest tax rate to 8.5 per cent for the highest. Australian shares returned 10.5 per cent for the lowest tax rate and 8.3 per cent for the top rate. Residential investment property delivered 10.2 per cent and 8.2 per cent, depending on tax. Cash returned only 4.8 per cent gross over the decade with after-tax returns ranging from 3.8 per cent to 2.4 per cent.