With the real estate market gaining traction once again, which is your best option this year?
4 min
For those on the hunt to find the perfect investment opportunity in 2024, two of the main sources of potential investment income to consider are shares, and the property market. The latter, currently, is gaining momentum again in Australia, coupled with stabilising interest rates, and inflation on a downward trend compared to this time last year.
On the other hand, if entering the property market is out of the question right now and you’d rather start small, investing in shares is a great alternative to consider. Naturally, there are always going to be dangers and risks associated with any type of investment, be it property or shares, but with some research and guidance, you’ll be better suited to make a decision.
“One thing all investors should do in the beginning is understand the asset class they want to invest in. If your personal interest is in building a property portfolio, then researching property investing and understanding the ins and outs is key,” David Pelligra, director & mortgage broker at Wealth Point Lending, says.Â
“The same goes for shares. If you are someone who enjoys the nuances of the share market and the inner workings of a publicly listed company, then again, researching that particular part of the market is important. My biggest piece of advice when investing is to speak with professionals that understand the market you are wanting to invest into.”
So, in 2024, which is your best option for starting your investing journey? What are the pros and cons of each? These are the questions you must ask before investing your money in either sector.
The idea of investing in shares as a means for potentially earning high returns has long enticed those looking to increase their capital growth over a long period of time. Shares also present the opportunity for ownership in companies with shareholders enjoying particular voting rights and dividend potential. Those who invest in shares often have a degree of flexibility and control, which is a comfort when investing large sums of money. For example, should you wish to access your funds at any point in time, often you can do so instantaneously. This cannot be done with property.
“Shares are a liquid asset, meaning you can sell parts or all of your portfolio, allowing for quick access to cash,” Pelligra says.
When investing in shares, individuals — novice or otherwise — should consider adding blue chip shares to their portfolio. These are shares issued by a large corporation, often one of notoriety, with an excellent reputation and experience in market capitalisation. Blue chip shares are often safe and risk-adverse, however any financial gain is usually in the long-term.
As Warren Buffett once said, “the first rule of an investment is don’t lose (money). And the second rule of an investment is don’t forget the first rule. And that’s all the rules there are.”
Despite their advantages, it’s essential to remember that investing in shares also carries with it risks, including the potential for the loss of capital. Price volatility is also another important factor to consider — where shares prices rise and fall rapidly over the space of days or months. Those who invest in high risk shares — although seeking higher returns in a short amount of time — have to be prepared that they could lose a large sum of money depending on which way the market swings.
Naturally, when endeavouring to invest in shares, it’s important to conduct thorough research. This includes seeking advice from financial professionals before making large investment decisions.
Somewhat a no-brainer, investing in property offers a number of benefits, from capital growth (should the property rise in value over time), through to reduced volatility (historically, property prices only go up). If you’re planning on owning a property as an investment—and plan on leasing it—you can generate continual cash flow to cover your property expenses. Unlike shares, investing in property is a physical endeavour, in that it’s something people can see and touch, which is always favourable.
For those that are looking long-term and don’t necessarily need the instant cash flow (yield) renting a property can provide, investing in property for capital gain is also a great way to increase your finances considerably. Depending on where you buy, residential properties have the potential to rise in value in a relatively short period of time, and as a result, can offer owners a significant gain should they look to divest at the right time.
“Investing comes with an inherent risk, but the key is to look at past performance. Property, for example, has consistently performed in Australia for the last 30 years, so you could feel quite safe if you were investing,” says Pelligra.
“Property is also a physical asset that you can either live in, or earn an income from if you are to rent it out.”
There are a number of potential pitfalls that come with investing in property. No one can predict where the property market is going to go, whether interest rates will rise or fall, and if you plan on renting your property, whether your tenants do the right thing in the way of upkeep, making regular payments, and so forth. Properties can also have additional costs attached, such as maintenance, repairs and upgrades, as well as insurance. For those looking to gain capital on an investment property they don’t live in, you also need to consider the capital gains tax, which naturally reduces savings and investment incentives.
Of course, there are ways of mitigating the risks of investing in property by doing thorough research, and speaking to the professionals who can assist you on your journey.
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All commentary made is considered general advice. It is recommended to seek financial advice from a professional before making decisions associated with investing.
Article originally published on Kanebridge News Australia
Rugged coastal drives and fireside drams define a slow, indulgent journey through Scotland’s far north.
A haven for hedge-fund titans and Hollywood grandees, Greenwich is one of the world’s most expensive residential enclaves, where eye-watering prices meet unapologetic grandeur.
The lunar flyby would be the deepest humans have traveled in space in decades.
4 min
It’s go time for the highest-stakes mission at NASA in more than 50 years. Â
On April 1, the agency is set to launch four astronauts around the moon, the deepest human spaceflight since the final Apollo lunar landing in 1972. Â
The launch window for Artemis II , as the mission is called, opens at 6:24 p.m. ET.Â
National Aeronautics and Space Administration teams have been preparing the vehicles to depart from Florida’s Kennedy Space Center on the planned roughly 10-day trip. Crew members have trained for years for this moment.Â
Reid Wiseman, the NASA astronaut serving as mission commander, said he doesn’t fear taking the voyage. A widower, he does worry at times about what he is putting his daughters through.Â
“I could have a very comfortable life for them,” Wiseman said in an interview last September. Â
“But I’m also a human, and I see the spirit in their eyes that is burning in my soul too. And so we’ve just got to never stop going.”Â
Wiseman’s crewmates on Artemis II are NASA’s Victor Glover and Christina Koch, as well as Canadian Space Agency astronaut Jeremy Hansen.Â
What are the goals for Artemis II?Â
The biggest one: Safely fly the crew on vehicles that have never carried astronauts before. Â
The towering Space Launch System rocket has the job of lofting a vehicle called Orion into space and on its way to the moon. Â
Orion is designed to carry the crew around the moon and back. Myriad systems on the ship—life support, communications, navigation—will be tested with the astronauts on board.Â
SLS and Orion don’t have much flight experience. The vehicles last flew in 2022, when the agency completed its uncrewed Artemis I mission .Â
How is the mission expected to unfold?Â
Artemis II will begin when SLS takes off from a launchpad in Florida with Orion stacked on top of it. Â
The so-called upper stage of SLS will later separate from the main part of the rocket with Orion attached, and use its engine to set up the latter vehicle for a push to the moon.Â
After Orion separates from the upper stage, it will conduct what is called a translunar injection—the engine firing that commits Orion to soaring out to the moon. It will fly to the moon over the course of a few days and travel around its far side.Â
Orion will face a tough return home after speeding through space. As it hits Earth’s atmosphere, Orion will be flying at 25,000 miles an hour and face temperatures of 5,000 degrees as it slows down. The capsule is designed to land under parachutes in the Pacific Ocean, not far from San Diego.Â
Is it possible Artemis II will be delayed?Â
Yes. Â
For safety reasons, the agency won’t launch if certain tough weather conditions roll through the Cape Canaveral, Fla., area. Delays caused by technical problems are possible, too. NASA has other dates identified for the mission if it doesn’t begin April 1.Â
Who are the astronauts flying on Artemis II?Â
The crew will be led by Wiseman, a retired Navy pilot who completed military deployments before joining NASA’s astronaut corps. He traveled to the International Space Station in 2014.Â
Two other astronauts will represent NASA during the mission: Glover, an experienced Navy pilot, and Koch, who began her career as an electrical engineer for the agency and once spent a year at a research station in the South Pole. Both have traveled to the space station before.Â
Hansen is a military pilot who joined Canada’s astronaut corps in 2009. He will be making his first trip to space.Â
Koch’s participation in Artemis II will mark the first time a woman has flown beyond orbits near Earth. Glover and Hansen will be the first African-American and non-American astronauts, respectively, to do the same.Â
What will the astronauts do during the flight?Â
The astronauts will evaluate how Orion flies, practice emergency procedures and capture images of the far side of the moon for scientific and exploration purposes (they may become the first humans to see parts of the far side of the lunar surface). Health-tracking projects of the astronauts are designed to inform future missions.Â
Those efforts will play out in Orion’s crew module, which has about two minivans worth of living area. Â
On board, the astronauts will spend about 30 minutes a day exercising, using a device that allows them to do dead lifts, rowing and more. Sleep will come in eight-hour stretches in hammocks.Â
There is a custom-made warmer for meals, with beef brisket and veggie quiche on the menu. Â
Each astronaut is permitted two flavored beverages a day, including coffee. The crew will hold one hourlong shared meal each day. Â
The Universal Waste Management System—that’s the toilet—uses air flow to pull fluid and solid waste away into containers.Â
What happens after Artemis II?Â
Assuming it goes well, NASA will march on to Artemis III, scheduled for next year. During that operation, NASA plans to launch Orion with crew members on board and have the ship practice docking with lunar-lander vehicles that Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin have been developing. The rendezvous operations will occur relatively close to Earth.Â
NASA hopes that its contractors and the agency itself are ready to attempt one or more lunar landing missions in 2028. Many current and former spaceflight officials are skeptical that timeline is feasible.Â
