Property vs shares
The same capital, two paths: a leveraged property versus an unleveraged share-index investment. See how gearing changes the long-run outcome, for better and for worse.
Compare against
Returns are indicative long-run nominal totals (incl. dividends). Drag to your own view.
Wealth over 20 years
Side by side at year 20
This compares a leveraged property scenario with the same capital invested unleveraged in share indices, using the assumptions you entered and indicative long-run return estimates. It is a simplified illustration: not a forecast, a recommendation, or financial advice. Leverage magnifies both gains and losses; property and share returns vary and can be negative; and the comparison ignores tax, transaction and selling costs, vacancy, and your personal circumstances. Past index returns do not predict future results. Seek advice from a licensed financial adviser before acting.
Leverage cuts both ways. The same gearing that lifts the property line in a rising market deepens the loss if values fall. This ignores tax, buying/selling costs, and vacancy.
Property vs shares: questions
Is property or shares a better investment in New Zealand?
Neither is universally better. They behave differently. Property is usually leveraged (you borrow most of the price), so gains and losses on the whole value are amplified against your deposit; it's less liquid and more hands-on. Shares are typically unleveraged, more liquid and diversified. This tool compares the two paths on the same capital; it's general information, not personalised financial advice.
How does leverage change property returns?
Leverage means you control a large asset with a small deposit, so a modest percentage change in the property value is a much larger percentage change on the cash you invested, in both directions. A 5% rise on a property worth 5× your deposit is roughly a 25% return on that deposit, before costs; a 5% fall works the same way against you.
What long-run return do shares average?
Long-run share-index returns vary by market and period and are never guaranteed. Rather than assume a single number, this calculator lets you set the index return assumption yourself and see how the comparison changes, useful for stress-testing both sides.