Why Residential Property?

Australia’s Top Performing Asset Class

“In risk-adjusted terms, residential property has delivered vastly superior returns to all other broad asset classes” (ANZ Economists, 2008).

High Average Returns

In raw terms, in the 20 year period to June 2010, residential property has delivered compound annual total returns of 9.7%, slightly higher than that of equities (9.6%) and above both composite property (6.9%) and bonds (8.7%).

Low Volatility – ‘Safe as Houses’

Due to its low volatility (relative to shares, etc), residential property has earned a reputation over the decades of being a ‘safe’ place to park money.

Diversification Benefits

Residential property exhibits a low correlation to other asset classes, which provides critical portfolio diversification.

With high average returns and low volatility, increasing residential holdings within an investment portfolio has been shown to greatly reduce the prospect of a negative annual return.