When comparing shares and property as investments, one option is clearly the better choice.

Both shares and real estate have nearly tripled in value over the past 20 years, but one of these common asset classes offers more advantages.

Which of our two most popular investment assets is the best has been a topic of discussion for as long as Australians have been making investments.

Some people cling to the stock market and its constant distribution of generous share dividends, which come with tax advantages from franking credits.

Others, among the 2.2 million Australians who invest in residential real estate, think that real estate is the best place to keep your money.

Some people rank superannuation as the top. The best tax advantages belong to super; tax-free retirement. But in reality, it serves as a structure to hold your retirement investments, such as stocks and real estate.

So, we're back to the property vs. shares discussion. There is a definite winner in our book: property, and here is why.

Different types of property exist. Real estate investment trusts, for example, are struggling on the stock market once more, but for the majority of us, property refers to a traditional brick and mortar building that provides a roof over our heads. And the roof is the primary justification for choosing property.

The shelter a home provides is distinct and priceless, even if you own Woollies shares and are contentedly stroking your grocery cart or purchasing tech items at JB Hi-Fi and sharing in the profits.

Importantly, it means you can invest the money after a loan is paid off instead of having to pay rising rent.

The second justification is the tax advantages of home ownership. Owner-occupiers don't have to pay capital gains tax if they sell their property for a profit, unlike most other assets, including shares. The biggest winners in this massive legal tax evasion scheme are those who own the most expensive homes.

Thirdly, the tax advantages of investing in real estate help reduce some of the out-of-pocket expenses associated with paying interest, council fees, insurance, repairs, and maintenance. Although controversial in some circles, tax deductions for negative gearing help landlords protect against investment losses while they wait for their properties to become positively geared and start turning a profit.

Investors in real estate may also be eligible for tax breaks based on the depreciating value of the building's structure, as well as occasionally for the cost of curtains, carpets, and other furnishings.

The fourth justification is that equity in real estate can be used as a down payment on additional properties. Due to rising interest rates and bank borrowing buffers, this has become more difficult for many, but tapping into home equity can be a potent wealth-generation strategy.

The size of a property investment is number five. If you invest $60,000 in shares and they increase 10% in value over a year, you will profit $6000. However, larger investments in real estate yield greater returns. For example, if you spend $600,000 on a property and it appreciates by 10%, your profit is $60,000.

While there are some drawbacks to investing in real estate, such as tenant problems and maintenance hassles, these can be managed by a qualified property manager, allowing investors to take a hands-off approach.

In the end, comparisons come down to performance and timing, and between 2003 and 2023, the value of both shares and real estate nearly tripled.

According to data from the Real Estate Institute of Australia, the country's median house price increased from $343,000 to $953,000.

Both have produced profitable long-term investments. But in our opinion, real estate has more power. And we are betting that it'll perform better over the next ten years.