A combination of Unit trust and Property investments will provide the smoothest return over the long-term. Leveraging property as investment with an Active managed model portfolio is a great diversification for your investment. Property investment can provide better returns than unit trust when geared (meaning using leverage or borrowing to invest), but it also comes with increased risks. Model portfolio will perform better if property is purchased cash or paid in full.  Unit Trust investment through an active model portfolio solution will offer you a more balanced investment portfolio.

Here are some reasons why property investment with gearing can be advantageous:

1. Leverage: When you use borrowed money (e.g., a mortgage) to invest in property, you can amplify your potential returns. If the property appreciates in value, your equity (the difference between the property's value and your mortgage balance) can grow substantially. This leverage effect can magnify your gains compared to a cash-only investment in unit trusts.
2. Income Potential: Rental income from property can help cover mortgage payments and potentially generate positive cash flow. If the rental income exceeds your financing costs, you can earn a steady income from your investment.
3. Tangible Asset: Property is a tangible asset, which some investors find reassuring. You have more control over its management and can make physical improvements to increase its value.

However, it's important to note that property investment with leverage also carries significant risks:

1. Interest Costs: Borrowing to invest comes with interest costs. If your investment doesn't generate enough returns to cover these costs, you could face financial strain.
2. Market Volatility: Property markets can experience significant fluctuations, and the value of your property may go down as well as up. If property prices decline, you may find yourself in a situation where you owe more on the mortgage than the property is worth (negative equity).
3. Liquidity: Real estate investments are generally less liquid than unit trusts. It can take time to sell a property, especially during market downturns.
4. Maintenance and Costs: Property ownership involves ongoing expenses like maintenance, property taxes, and insurance. These costs can eat into your returns.
5. Diversification: Investing heavily in a single property or property market can lack diversification, which increases risk. Unit trusts typically offer more diversification across various asset classes and markets.
6. Regulatory Risks: Property markets are subject to government regulations, which can change and impact your investment returns. For example, changes in property taxes or rental regulations can affect your cash flow.

In conclusion, property investment with leverage can provide significant advantages in terms of potential returns and income generation. However, it also comes with higher risks, including interest costs, market volatility, and illiquidity. Whether property investment with gearing is better than unit trust investment depends on your financial goals, risk tolerance, and ability to manage the associated risks. It's crucial to conduct thorough research, consider your financial situation, and consult with Our Family Office before making investment decisions.