Property Investment Funds

pat_sexy

I read recently that Property investment trusts might be on the market soon.

As I don't have sufficent funds to buy property outright in the UK market could anyone advise if this is a useful option?

Is anyone familiar with the worldwide property market, are there any better investment bets than the UK - i.e. will probably be more profitable over the next 10-15 years?

Will Property Investments trusts be available for non-UK properties.

Cheers,

Pat

cloud_dog

Pat, there are already a number of Property "Investment Trusts" available and property funds. These tend to invest in the shares of companies that develop properties or run properties as investments.

I think you may be referring to the relaxation of rules allowing funds to invest directly in property, especially residential property. I don't think this has been approved yet.

Affraid I don't like recommending investment options for people but if you go to a finacial website (sucj as III - https://www.iii.co.uk) and seach on funds or IT's with "property" in the name you will find some.

cloud_dog

isasmurf

I think you are referring to UK Real Estate Investment Trusts (REITS). These are not expected to be available until April 2006 at the earliest.

As I understand it (although I may be completely wrong!) the main difference between REITS and the property funds currently available is that the companies that are set up for the REIT would be tax exempt -the individual would pay tax at their normal tax rate. Whereas the companies that are set up for property funds currently pay normal business taxes.

EdInvestor

You can already invest in commercial property in four ways

1.Through the well established property funds run by the major insurance companies ( a good slot for some of your pension savings perhaps?)

2.Through several unit trusts run by fund managers such as New Star

3.Through a number of offshore property trusts recently set up by insurers such as Scottish Widows, Standard Life, Friends Provident.These are listed, so you buy them like shares

4.By buying shares in listed property companies.

The tax arrangements for REITS aka PIFS don't seem to have been sorted yet, looks like they won't be available until next year at the earliest.They are already a big feature of US and Australian investment strategies.

dunstonh

Not just insurance companies...

Although the NU Property fund (sometimes referred to as Morley. NU own Morley) is the most consistent and regular award winner, a number of fund managers offer property funds.

Not all property funds are equal though. Some will invest in commercial property only. Others will invest in property companies and shares in property. The latter being higher risk (although lower than general stockmarket).

Every portfolio should include a percentage of commercial property. Only negative is that property funds cannot be utilised inside of an ISA. Pensions, UT, OEIC etc are fine though.

blinko

i think axa have just launched a european property fund which may interest you although im not sure if its a UT or IT