Investigation and Report

Investigation and Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Shares, its purpose, with process of purchasing and selling...................................................1
Rental properties investment strategy with process of how its value accrues to the investment
with time.................................................................................................................................2
Comparison of share investment strategy and rental properties investment strategy, with
advantages and disadvantages................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Rental property can be referred to as the property whereby the owner acquires a fixed
sum of money from occupants (more commonly known as tenants), in exchange for utilization
of the property (Paccoud, 2019). Rental properties can either be commercial or residential. It is
seen that the owner of any rental property have the right to leverage some tax deductions like
depreciation, mortgage interest and so on (Gerard, 2019). The present project explores the
concept of shares, their purpose and the procedure of its purchase as well as sale. Further, the
project illustrates discussion over rental properties and its working in Australian market. Besides
this, comparative analysis is presented of shares and rental properties as investment strategy on
the basis of their advantage and disadvantage for the investors.
MAIN BODY
Shares, its purpose, with process of purchasing and selling
Shares can be defined as unit of ownership in a corporation or financial asset, which
provides an equal distribution of profits to shareholders (Coleman, 2019). For raising capital in
business, employers provide a small wedge of ownership to potential investors. Generally, shares
are found in two types as Common shares and Preference shares. Shareholders who purchase
common shares have voting rights in the firm and they receive dividends over the period as per
level of profitability (Hulse, Morris and Pawson, 2019). While, preferred shareholders gain
priority in dividends payment but don’t possess right of voting. Therefore, making an investment
in shares by selling or purchasing means to make more money on invested amount of capital
(Rossi, Vismara and Meoli, 2019). When an investor purchases shares of a company then money
can be gained in two ways. First one, with growth of company, invested amount also worth more
and valuable (Sharam, 2019). Second one is getting in the form of dividends, i.e. get a part of
company’s profit each year. ASX i.e. Australian Securities Exchange is one of the largest stock
market of Australia, where more than 2,000 companies are associated with buying or selling
activities of shares, whose market capitalisation is more than $2 trillion AUD (How to buy shares
in Australia?, 2019).
Ways to buy shares in Australian market: The most common procedure to buy shares in
Australia is “On Market” that is – buying shares in exchange from ASX or Chi-X. Here, when
investors place a trade with brokers then they automatically buy shares at the best premium rates
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