Titbit: Shares massively outperform real estate in FY13

Not surprisingly, and as predicted by the market analysts, share market investment blitzed real estate investment for the financial year just ended.

I can recall on the Sunday business show where they were forecasting that the share market would outperform real estate from the year 1/7/2012 to 30/6/2013 by a factor of three. Well they were wrong! Way wrong!

Based on the Australian average real estate improvement of 1.6 percent in FY13 the share market, which achieved a whopping 17.29* percent improvement, outperformed real estate by a factor of over ten! If you factor in dividends from shares the return from investment in shares is a whopping 22.2* percent providng a factor of almost 14 over real estate.

Even if you use the West Australian only real estate percentage improvement of 2.8 percent then the share market still outperformed that by eight times.

So, had you put $50,000 into real estate and $50,000 into the market at the start of the financial year then you would now, 12 months later, have $50,800 in your real estate account (assuming you did not have to pay anything out for costs or maintenance) and $61,100 in your shares account—assuming you bought the ‘average’ spread of shares.

So, the question now is, what do the experts predict for FY14?

[Page 40 of Saturday’s ‘Australian Financial Review’, 29-30 June, Equities by Leng Yeow]

BarryMark