Compared with equities, property as an investment is typically characterized by which of the following?

• A. Offer a higher return.
• B. Lower protection against inflation.
• C. Significantly lower level of liquidity.
• D. Offer a lower return.

Answer: (C)

Liquidity is about how quickly you can turn an asset into cash without taking a big price hit. Property is much less liquid than equities because selling a property takes time—finding a buyer, negotiating terms, completing conveyancing, and paying transaction costs can stretch over weeks or months. In contrast, shares trade on exchanges with many buyers and sellers, and you can usually sell quickly with minimal price concessions. That makes property’s liquidity significantly lower than that of equities.

The other statements don’t fit as a general rule. Returns can vary, but equities often offer higher long-term growth potential and are not inherently lower in return than property. Inflation protection in property tends to be stronger than cash because rents and property values can adjust with inflation, so the notion of lower inflation protection doesn’t hold universally.