According to Perpetual, buying property trusts is much better than getting residential property because of diversification, liquidity, etc. See the link below: http://www.perpetual.com.au/pdf/20360_GTI_Prop.pdf However, according to an ABC article Shares or property - what's the better investment? it says the following: "If you are borrowing to invest, and many people do, it is cheaper to get a loan secured against property than against shares. This is important to consider if borrowing is part of your wealth creation strategy." In other words, if you borrow from the bank and secure the loan against your house, you can get better deals. What I want to know is whether you need to secure the loan against a residential home or whether you can secure it against units in a property trust. Do banks prefer actual residential homes or will they be happy with units in a property trust?