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Writer's pictureSAMUEL CHIBUNNA

Investing in Australia: Commodities vs Real Estate

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The Land Down Under is known by many as the ideal destination for a summer holiday with family or a group of your childhood buddies. From the sun-kissed beaches to the numerous attractions waiting to leave tourists from across the word mesmerized by all their splendour, it is one of the most preferred destinations of vacationers looking for a much welcomed reprieve from their day-to-day rituals. However, that is not all that the country offers to those looking to visit the country.

Business-minded individuals looking to invest their hard-earned Australian dollars, or any other currency for that matter, in the hopes of making a profit are also offered a ton of options to choose from. Among these, the commodity and real estate markets are regarded as two of the top choices among a majority of intellectuals. Let’s see why that is the case.

Investing in the Australian Real Estate Market If you take a look at some of the top-performing property markets from across the world, you are sure to find the Australian real estate market in amongst that list. This piece of information may serve as an eye opener for some, but it doesn’t make it any less true.

When world economies were left reeling from the after-effects of the Global Financial Crisis (GFC), Australia was one of the countries whose property prices did not suffer a major setback. This was primarily courtesy of the mining boom induced by China. As interest rates plummeted to increase lending and spending as a direct response to mitigate the effects of this downward trend, it helped in successfully stabilizing as well as driving up consumer demand and property prices within the country, particularly in Melbourne and Sydney.

So, if you have a life’s worth of savings lying in your bank account, consider buying a property rather than living off interest for the rest of your life.

Gold and Silver There are plenty of reasons why members of the business community have termed gold and silver markets ‘safe haven’ investment option. If you didn’t know this already, it’s because these commodities are not tied to financial assets, such as marketable securities or real estate. This makes them less susceptible to fluctuations in their prices and even less prone to suffer from devaluations in the considerable future.

According to Jordan Eliseo, a chief economist working at a reputable gold trading company in Australia, “Over the last 15 years, Australians would have been much better saving in gold rather than a bank account.” He also said, “It’s set up as direct debit plan, so it’s a very easy way to build savings in something that has traditionally risen a lot further than cash, and has also done better than shares and even property over the last 15 years.”

From an investment point of view, everything points in 2 directions: The commodities and the real estate market. So make sure you do your research to make the right call and increase your chances of earning a solid amount of profit.

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