Is it better to invest in ETFs or property in Australia?

Neither wins automatically. Property is leveraged, so a small deposit controls a large asset and modest growth is amplified — but stamp duty, loan interest and holding costs are heavy and it's illiquid. ETFs have almost no costs, full liquidity and easy diversification, but no leverage. Over the long run both have built wealth for Australians; the right choice depends on your borrowing capacity, risk tolerance and time horizon.

Does leverage make property the better investment?

Leverage cuts both ways. Borrowing to buy property magnifies gains when prices rise, but it also magnifies losses if they fall, and you pay interest the whole time. You can borrow to invest in shares too (margin loans, debt recycling), though most people don't. Leverage is the single biggest reason property and ETF returns diverge in any comparison.

What costs does this calculator account for?

For property it deducts roughly 6% of the price in buying costs (stamp duty and legals) and nets the remaining loan off your end equity, with rent assumed to roughly service interest and holding costs. It doesn't model negative gearing, depreciation, capital gains tax or interest rate changes, so treat the result as an indicative guide, not advice.

ETF vs Property Calculator

Should you put your deposit into a diversified share ETF or an investment property? Compare projected end wealth for both — net of buying costs, the loan, and leverage.

Last verified: 5 May 2026

Shares or an investment property?

Property is leveraged — a small deposit controls a big asset — but stamp duty, interest and holding costs are heavy. ETFs have almost no costs and full liquidity, but no leverage. The winner depends on your assumptions. General guidance only.

Worked example. A $100,000 deposit at 8% in an ETF grows to about $317,000 over 15 years. The same deposit on a $650,000 property growing 5% builds equity too — adjust the inputs to see which pulls ahead for your numbers.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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ETF vs Property Calculator

Shares or an investment property?

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