Better Returns For Property (written by Enzo Raimondo)

Hi all, here is a great article written by Enzo Raimondo (REIV ceo).  Enjoy!! 
The Goggin Team. "WE GET RESULTS" 

The recent falls in the stock market, both here and overseas, are a timely reminder about the benefits of diversified investment portfolio which includes property.
The last 20 years have shown that investment in Melbourne property has provided better returns than the stock market, a factor that will provide further comfort to property investors.
A recent study by Dr Ashton de Silva and Professor Gavin Wood published by RMIT University showed that, in addition to satisfying the basic need of accommodation, housing was also a very solid long-term investment.
Their study compared the typical rates of appreciation across 108 different segments and 500,000 sales between 1990 and 2010. This period of time includes the 1991 recession, Asian Financial Crisis, the 2001 recession and the recent Global Financial Crisis.
The outcome was compared to that gained from a balanced portfolio of Australian shares as measured by movements in the Australian All Ordinaries Index over the same time.
The study showed that that the quarter-on-quarter percentage increases for property was 1.6 per cent compared to 1.3 per cent for shares.
Not only were the returns greater but they were subjected to less volatility (view the graph).
The study also found that in over 80 per cent of the market segments reviewed there was very little or no correlation between the share market and returns from the residential  property market. This means that broadening an investment portfolio to include property is likely to provide not only stability to the outcomes but can also help to counter balance significant shifts in the stock market