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document.write("<div class=\"article_Comments\">USER COMMENTS >");
document.write("<h5>Not entirely true.</h5>");
document.write("You forget that with property YOU enjoy the return (capital appreciation and rent) on an asset that you don't even own (the banks owns it).<br /><br />If shares are \"safer\" than property, try asking the bank to lend you R800,000 to gamble (because that is essentially what you are doing) on the stock exchange.<br /><br />I'm not saying property is pefect, or that shares are no use at all, but the reality is property if invested in wisely, allows people with no capital to make a substantial return that would simply not be possible with shares. <br /><br />If you are sitting on pots of your own money, then yes, shares #may# be a better bet in the long run.. Bob");
document.write("<h5>Diversify</h5>");
document.write("Given the choice, I'd say that the best investment portfolio would have both property and a wide range of shares (blue chip through to start-ups for dividend income and \"pops\"). That way, risk is also diversified. One thing I'd add is that while shares may \"outperform\" property, there is very little chance, in the long run of you not getting back your original investment. Not so for shares. For high profile bankrupcies, think Bear Stearns, Northern Rock, Enron and Worldcom in recent years. Also, stock markets are very cyclical. You're in trouble if you want to cash out in a trough. Best to start moving to less volatile investments (bonds and cash) as you apprpach your retirement age. . John");
document.write("<h5>Property myths</h5>");
document.write("THANK YOU!<br /> <br />i have torn my hair out with frustration trying to get friends to understand that property is NOT the only way to make money! (just one of the many)<br /> <br />it is frightening how many people are of the opinion that property is a guaranteed way to increase wealth<br /> <br />alan gray turned R 10 000 into R 80 Mill in 30 yrs, NO property bought for R 10 000 30 years ago is worth a fraction of that today<br /> <br />i have copied the link to your article to a whole bunch of folks !<br /> <br />regards justin<br />. Justin");
document.write("<h5>Investing in stocks is NOT gambling!!</h5>");
document.write("In reply to Bob:  What the heck are you on about? Investing in shares is NOT gambling.  Check your facts - over the longterm shares outperfoms ALL OTHER ASSET CLASSES not to mention property.<br /><br />. Mike");
document.write("<h5>Property vs Shares</h5>");
document.write("It's not good enough to just 'get back your original investment' like John says.  You need to beat inflation!! Shares can do that. Buy lots of different companies and if one goes down, it won't matter too much.<br /><br />It doesn't matter that the market are cyclical or volatile if we're talking about the longterm here.  Over the longterm shares are not even a bit risky.  . Melody Pienaar");
document.write("<h5>A nice perspective</h5>");
document.write("Thank you for presenting some reality regarding property. The adage \"safe as houses\" has long been patently untrue and these days is irresponsible, if not downright dangerous to many family's opportunities.<br /><br />As a side note, I would like to make a note on John's comment above (Diversify) : John, you mentioned both Bear Sterns & Northern Rock as examples of high-profile bankrupcies, presumably in relation to the risk of shares? I'd like to point out that both those institutions suffered great losses from (amongst other things) derivative instruments based on collateral debt obligations, leading (bleeding) from... mortgages! The property bubble has most definately begun to burst (it's only just started, in my opinion) and that is why this article is refreshing in that it points out that such booms & busts do indeed occur in real estate.. Zac");
document.write("<h5>Response to Zac</h5>");
document.write("You correctly point out that both BS (ha ha) and Northern Rock went under due to their overexposure to CDO's. Also known as \"toxic waste\". I'd just like to point out that these are financial instruments more closely related to shares than to property as an asset class. In theory, if BS and NR had bought the houses themselves (or lent responsibly to riskworthy individuals), instead of buying chunks of potential bad debt from other lenders, the losses would have been sustainable. Lenders taking bigger risks on who they have lent to has no doubt contributed to the rampant rise in property value; and their rediscovery of prudent lending criteria (like a bigger deposit to shield their investment from the downside) in the down market will also, no doubt, contribute to the fall in prices over the next few years.  . John");
document.write("<h5>fees impact returns</h5>");
document.write("Two things, first diversification is the key, this will minimise up side as you won't have all your eggs in the one basket that is rising, but more importantly it also minimises downside losses. As different asset classes generally have different cycles.<br />One thing to also remember is shares have over a long period generated a return of about 9% pa. This is S&P 500. However when you have fees such as 5% up front and 1.5% per annum these returns are greatly reduced. Index trackers generally outperform manged funds over the long term because of the compounding effect of charges.<br />These don't apply to property.<br />Cheers<br />David<br />. David");
document.write("<h5>Property also has 'fees'</h5>");
document.write("To my namesake, property has multiple 'fees' that don't apply to shares.  The upkeep of a home is very expensive, but these costs are rarely taken into account when we talk about the value appreciation of our homes.. David");
document.write("<h5>Rental Income</h5>");
document.write("When comparing Shares to Property, in the case of a 2nd property, people tend to forget the fact that rental income allows you in the short-term to claw back some of your costs, in the medium-term most (if not all) of your costs and the long-term, make a tidy income. Then added to that the annual capital growth of around 10% makes property investment an attractive option, in my mind the first investment vehicle before shares as you need equity to invest in properly shares which property will give you.. Daniel");
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