Get in the ring: Stocks versus property

Barbecues (remember those?) just wouldn’t be the same without it: property investment. I’m sure we’ve all been bailed up as that “friend” chewed your ear off about how much yield he’s generated from his two-bedroom walk-up in Ultimo (when all you want is to drink your beer in peace).

And then there are the “stock frothers” whose eyes flash dollar signs over everything from Afterpay (ASX: APT) to Z Energy (ASX: ZEL).

If you bring the two investing tropes together, you’ve got a fight for the ages as they each extol the virtues of their asset class.

Well...that’s not quite what we’ve got for you today. But in this Livewire Income Series special, Chris Bates, a financial planner who now runs his own mortgage broking firm Wealthful, debates Steve Johnson, CIO of Forager Funds Management. Johnson has (wrongly, he argues) earned a reputation as being anti-property investment and very pro-stocks, which is perhaps understandable in his line of work. While he now owns a home, or “assisted his wife in buying their house” as he puts it, Johnson holds a more measured view on the merits of property investment versus stocks.

In this interview, they get stuck into:

• the danger of assuming the average 8% both asset classes have returned over the last 20 years will last forever
• why owning an investment property for income is a furphy
  
• why high rates are a turnoff for both stock “frothers” and wannabe reso tycoons
  
• the relative costs (and returns) of maintaining a stock portfolio versus a Werribee weatherboard

So, let’s get ready to rumble. Ding-ding.

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