---
title: "Investing in property: directly and in equities"
description: We highlight the difference between investing in property directly or by buying equity (shares) in an company that works in the property sector.
image: https://properties.easyequities.co.za/hubfs/EasyP%20n%20EasyE.png
---

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## Investing in property: directly and in equities

![investing-property-directly-equities](https://properties.easyequities.co.za/hubfs/EasyP%20n%20EasyE.png)

14 June 2022 / [Education](https://properties.easyequities.co.za/news/tag/education) [Insights](https://properties.easyequities.co.za/news/tag/insights)

 Posted by: [ Standwa Nongauza ](https://properties.easyequities.co.za/news/author/standwa-nongauza)

[EasyProperties](https://properties.easyequities.co.za/) launched over a year ago in 2020, giving investors the opportunity to buy shares in property units. We highlight the key differences between buying shares in a property company via EasyEquities and buying shares in a specific property via EasyProperties.

The key difference between buying shares in companies that operate in the property industry versus buying shares a property directly is that your investment is not diluted by that companies' other assets, nor are you at the mercy of a company's management of the overall company's finances.

### The Macro vs Micro 

In a property company, many factors are at play including the sheer amount of assets they manage. Chances are that if a company is publicly-listed on an exchange, then their hands are in dozens of other assets/properties. As a result, they'd be vulnerable to the ups and downs of the broader market.

In addition, a company's liabilities and income are not only dependent on its fixed assets (i.e staff wages, corporate actions, investments, etc). These are the macro-influences that contribute to the company's success, and a property development is simply one piece of the pie.

On the other hand, investing in a property directly means a more granular exposure. 

Although the concepts remain the same, direct property investment reduces dilution. Even while a development must pay its own costs and obligations before it can turn a profit, the link between the revenue it generates and the profits an investor realises is closer, more evident, and easier to identify.

 

### Dividends vs Rent 

Companies may pay out dividends, and the factors that determine whether they will pay out dividends are outlined in [this blog](https://properties.easyequities.co.za/dividend-basics). But, in short, dividend payments are determined by a company's executives and that's that. Dividend payments are often guided by the business' health, strategies, and sometimes sentiments about the company.

Essentially, dividends feel like a reward for investors to attract more investors.

Property investors receive rent, which is far less negotiable. Flexible rental agreements may happen somewhere in the world but they are not the norm. A regular income is generated from the rent that property owners receive and it's no different on EasyProperties. The platform pays out rent to all shareholders in a property on a quarterly basis. 

### Liquidity 

Trading in equity shares via a stock exchange are likely to happen on a second-by-second to day-to-day basis. If you wish to buy or sell shares in a company you would likely find a buyer immediately so long as markets are open. Of course this is all predicated by whether a share is small cap or large cap, or what its status is on the exchange is (suspended or actively trading).

Buying and selling property is less liquid - a trader's nightmare as they would have to wait for a buyer after listing a property for sale. In the traditional environment this could take months to happen, and even then a lot of negotiation could take place before the transaction done.

Fortunately, EasyProperties aims to minimise this timeline to a quarterly basis where investors on the platform could bid and offer for shares in a property with other investors exclusively on the platform.

 

---

Learn more property terms [here](https://support.easyproperties.co.za/support/solutions/folders/13000014513) or click below

[![Property Jargon](https://no-cache.hubspot.com/cta/default/1690236/45167d88-0e8f-425c-9578-ac64916279a1.png)](https://cta-redirect.hubspot.com/cta/redirect/1690236/45167d88-0e8f-425c-9578-ac64916279a1)

---

### The point of this comparison

It's all up to you to decide what's best *for you*. Thankfully, South African residents have access to both on Easy so they don't have to choose one over the other type of investment. Deciding on how much to allocate your finances is down to your appetite.

Dividend-loving investors might veer toward direct property investing, while traders might appreciate the much faster-paced equity markets. Fortunately, the bulk of us do not choose to identify ourselves in such binaries, so a little bit of this and a little bit of that doesn't hurt. That is why I'll close with a cliché tip echoed in the markets and in Easter Egg hunts - don't put all your eggs in one basket.

 

---

>  
> 
> Have you seen the exciting properties currently listed?
> 
> To make investing through EasyProperties even more valuable and exciting, we continue to add more excellent properties onto the platform. We are super excited to show you these amazing properties, and we know you will fall in love with them just as much as we do because of the potential income they will provide.
> 
> [![View Properties](https://no-cache.hubspot.com/cta/default/1690236/0e378408-19c6-450b-9560-02a9afe2ae45.png)](https://cta-redirect.hubspot.com/cta/redirect/1690236/0e378408-19c6-450b-9560-02a9afe2ae45)
> 
>  

| ![ON BATH_EXTERIOR5-1-1](https://properties.easyequities.co.za/hs-fs/hubfs/EasyProperties/Properties/Capital%20on%20Bath/ON%20BATH_EXTERIOR5-1-1.jpeg?width=431&name=ON%20BATH_EXTERIOR5-1-1.jpeg) Capital On Bath ![NewListing](https://properties.easyequities.co.za/hs-fs/hubfs/NewListing.png?width=120&name=NewListing.png) ![home icon](https://properties.easyequities.co.za/hubfs/office.png) Hotel Apartments ![map marker](https://properties.easyequities.co.za/hubfs/map-marker.png) 72 Bath Avenue, Rosebank, Gauteng [ View Property ](https://platform.easyproperties.co.za/properties/property/25) | ![The Carrington Hero Exterior Cropped-1](https://properties.easyequities.co.za/hs-fs/hubfs/EasyProperties/Properties/Carrington/The%20Carrington%20Hero%20Exterior%20Cropped-1.jpg?width=431&name=The%20Carrington%20Hero%20Exterior%20Cropped-1.jpg) The Carrington ![NewListing](https://properties.easyequities.co.za/hs-fs/hubfs/NewListing.png?width=120&name=NewListing.png) ![home icon](https://properties.easyequities.co.za/hubfs/office.png) Urban Living Apartments ![map marker](https://properties.easyequities.co.za/hubfs/map-marker.png) 112 Loop Street Cape Town City Centre, Western Cape [ View Property ](https://platform.easyproperties.co.za/properties/property/25) <https://platform.easyproperties.co.za/properties/property/25> <https://platform.easyproperties.co.za/properties/property/25> |
| --- | --- |

>  
> 
> Got Questions?
> 
> Here are a few common ummm’s and aaah’s for you to check out, otherwise you can hit up our rockstar client engagement team on [helpme@easyproperties.co.za](mailto:helpme@easyproperties.co.za) for any questions you have.
> 
> - [Is there a minimum investment to invest with EasyProperties?](https://support.easyproperties.co.za/support/solutions/articles/13000072713-is-there-a-minimum-investment-to-invest-with-easyproperties-)
> - [Where do the properties come from?](https://support.easyproperties.co.za/support/solutions/articles/13000072714-where-do-the-properties-come-from-)
> - [How long is the investment term?](https://support.easyproperties.co.za/support/solutions/articles/13000072724-how-long-is-the-investment-term-)
> - [How long does it take for my money to reflect if I make a deposit?](https://support.easyproperties.co.za/support/solutions/articles/13000075007-getting-funds-into-your-account)
> - [Can I sell my shares at any time?](https://support.easyproperties.co.za/support/solutions/articles/13000072726-can-i-sell-my-shares-at-any-time-)
> 
> [Check out our Help Centre](https://support.easyproperties.co.za) - it's jam packed with answers to all the questions you can think of.
> 
> [![View Properties](https://no-cache.hubspot.com/cta/default/1690236/0e378408-19c6-450b-9560-02a9afe2ae45.png)](https://cta-redirect.hubspot.com/cta/redirect/1690236/0e378408-19c6-450b-9560-02a9afe2ae45)
> 
>  

 Happy Investing. 🔥

 

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EasyProperties is a juristic representative of First World Trader (Pty) Ltd t/a EasyEquities which is an authorized Financial Services Provider (FSP number 22588). All trades on the EasyProperties platform are subject to the legal terms and conditions to which you agree to be bound. The EasyProperties platform enables users to invest in securities which includes whole shares and fractional share rights (FSRs). EasyProperties acts an agent for the issue of whole shares, where the investor is the registered owner of those shares, entitled to dividends, participation in corporate actions and all the economic benefits and risks associated with share ownership.

In respect of FSRs, EasyEquities acts as principal to a contract for difference issued to the investor, where the investor will have a contractual claim against EasyEquities to the economic benefits and risks associated with share ownership (price movements and dividends) without having ownership rights in the underlying share. Fractional share rights (FSRs) which are issued through a contract for difference, are an over the counter derivative. Unlike whole shares, FSRs do not carry any voting rights. As the investor makes further investments in FSRs and ultimately ends up with a whole share, the contract for difference is closed out and ownership whole share is delivered to the investor.

The availability of any share on the EasyProperties platform is based on various factors but is not an indication of value and does not mean that any share is an appropriate investment for you. The value of a share is not guaranteed. The value can go down as well as up due to variable market factors. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. Examples and/or illustrations are not guaranteed and are provided for illustrative purposes only.

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