Economists weigh in on whether to invest in shares or property in 2019
Investors looking for the best place to park their cash this year face challenging market conditions for both residential property and shares, economists say.
Housing has been hit by the financial services royal commission and a tightening of credit, while federal Labor’s proposed changes to negative gearing and capital gains tax incentives have also added uncertainty.
But sharemarkets locally and overseas have recorded large swings in recent weeks as investors fret about the China-US trade war and its potential local impacts.
HSBC Australia’s chief economist Paul Bloxham said the housing market was going through an orderly decline and the situation could be worse, even as he predicts Sydney and Melbourne prices could drop 12 per cent to 16 per cent from peak to trough.