PROPERTY NEWS - As if consumer's did not have it difficult enough in the wake of Brexit, Theresa May's ill-judged snap election has caused even greater uncertainty.

According to recent data from YouGov and the Centre for Economics and Business Research (CEBR), consumer confidence has collapsed from 109.1 to 105.2, leaving businesses facing an uncertain future as households commit to spending less.

This is also bad news for investors, particularly those who indulge in trading forex and shares. This may encourage them to move their money into real estate instead, but this is a complex comparison that deserves careful consideration.

Property or shares: 3 Main considerations
Growth and returns
While the UK housing market has enjoyed a boom in recent times, it has also endured significant periods of decline. This has had an impact on the level of bottom line growth within the sector, which has peaked at an average of 0.9% per annum since 1966.

Conversely, alternative indexes report that the average annual returns for share trading are far higher. Take the JSE All Share Index, for example, which when adjusted for inflation has provided investors with returns of 15% during the last decade. While this decreases slightly to 11% over the course of the last 30 years, this still compares favourably with the housing market.

Much of this has to do with the flexibility of share trading and the ways in which investors can access the market, and it may have a crucial impact on your decision.

The issue of capital
Thanks to the evolution of the financial market, shares are now far more accessible to part-time traders and investors. This makes share trading ideal for developing a passive income stream, as it is relatively low-cost, manageable online and capable of delivering optimised, tax-free returns.

While some will argue that you can finance the purchase of property with borrowed capital, of course, this requires a significant fiscal commitment and a willingness to accrue long-term debt.

Not only this, but you may wish to reduce your borrowings by laying down a 20% deposit, and this can be a sizeable lump sum that increases the risk associated with real estate investment.

The importance of diversification
While there are a number of underlying laws that govern financial market success, the need for a diversified portfolio is one of the most crucial. After all, this optimises your prospects of earning viable returns at any given time, while it also enables you to create a balance between risk and reward.

In general terms, shares offer greater flexibility, as you can use this vehicle to purchase equity in numerous businesses across various industries. So, you can spread the risk across a number of different markets, rather than committing to a real estate sector that remains vulnerable to the wider, macroeconomic climate.