Benefits of Investing in Shares

Plenty of people are actually investing in shares in a passive way through their superannuation, but others like to take a more active role and have an investment portfolio of different shares that they invest in. Since investors in shares have the ultimate goal of making money from them there are several benefits of investing in shares as opposed to real estate.

* The main benefit to investing in shares is that there is a high level of liquidity. When compared with owning real estate and selling it to get a profit, owning and then selling shares can be done in a fraction of the time. So you can get your money back really quickly with shares, where you may have to wait months to sell your property.

* The 1200 companies that offer shares make it easy to choose which ones to buy to meet your needs. With real estate there are only a few choices, e.g. rental properties or commercial properties.

* You can buy shares for a smaller investment than real estate requires. That said, you can also buy shares in real estate – but you will not own the whole thing.

* You get a share in the company when you buy shares, so you get a small say in how it is run.

* You can make a profit two ways, by getting dividends from the company or by selling your shares once their value has increased.

* You don’t need to get a mortgage to buy shares like you do with real estate.