LPT

Listed property tops returns
May 17, 2005
From: AAP
AUSTRALIANS investing in listed property trusts over the last ten years have done better than those who put their money into investment properties or Australian shares, according to a report released by the Australian Stock Exchange (ASX) today.

The ASX Investment Report found that investments in listed property had generated after-tax returns of 12.3 per cent per year for those on the lower marginal tax rate over the last decade.
Investments on Australian shares returned on average 11.6 per cent a year over the same period while residential investment properties returned 10.6 per cent.

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Fixed interest investments returned 6.7 per cent over the last ten years to those on the lowest marginal tax rate and cash returned 3.8 per cent.

The report said all of these returns were above the average rate of inflation, which had been 2.6 per cent per year.

Those on the top marginal tax rates were still well ahead of inflation if they invested in listed property trusts (10 per cent), Australian shares (9.2 per cent) or residential investment property (8.4 per cent).

If they invested in fixed interest assets they were still slightly ahead with a 4.4 per cent return but if they invested in cash they fell below inflation with a 2.4 per cent return.

ASX deputy chief executive Colin Scully said the results contained lessons for participants in Australian capital markets.

“Of course, all market are prone to volatility, but this report illustrates that diversification and perseverance are necessary for riding out the inevitable rises and falls of all markets,” he said.

“Money is a currency, like electricity and it requires momentum to make it Effective”
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