Fund which contains housebuilders

redmalc

Hi Guys
I am looking for a fund which is mainly a spread of the U.K. Housebuilders for a punt in my HL S&S isa,can anyone point me in the right direction.

Glen_Clark

Be aware there isn't much profit in building houses. Recent 'housebuilders' windfall profits have been due to the increase in value of their landbanks.
For years now we have heard politicians promises to build many more houses but thats all they are - politicians promises, saying what they think will get them elected. It isn't going to happen unless they find the courage to take planning decisions away from local Nimbys, and there is no sign of that.
We haven't got enough trained builders to build them now anyway, what there are tend to be lured away into the Government's money no object white elephant projects.
When a sector becomes as fashionable as 'housebuilding' is now, its usually time to sell.

redmalc

Glen I am not ploughing fortunes into the fund,I have a well spread portfolio but just fancy a punt for a couple of years before I retire.
I have a NS&I bond maturing shortly so all I am doing is moving it from approx2'5% to the fund,not much risk there

Linton

I dont think there is any chance of getting a fund focussed on housebuilders, its far too much of a niche to create a fund of sufficient size or sufficient general interest to be economic. Most significant house builders will be in the FTSE250, but of course so will lots of other things.

If you really want UK builders your best bet is to buy individual shares, there arent that many quoted large builders. You would need to be thinking about at least £1K in each preferably £2K to keep % costs down.

If it must be a fund I am sure you can find better things for a punt.

george4064

Linton wrote: »

I dont think there is any chance of getting a fund focussed on housebuilders, its far too much of a niche to create a fund of sufficient size or sufficient general interest to be economic. Most significant house builders will be in the FTSE250, but of course so will lots of other things.

If you really want UK builders your best bet is to buy individual shares, there arent that many quoted large builders. You would need to be thinking about at least £1K in each preferably £2K to keep % costs down.

If it must be a fund I am sure you can find better things for a punt.

Over the past few years, with housebuilder shares rising handsomely we've seen a fair few of them promoted to the ftse 100. Barrett Devs, Berkeley Group, Persimmon, and Taylor Wimpey.

Bazofts_Revenge

Rather than Builders I would look at operators of Commercial Properties like Segro, British Land, Land Securities so a share mix of these may give you a better return.

redmalc

Land securities

Reaper

While you can invest in the shares of individual house builders for a focused investment on residential housing what you may be after is known as a REIT (Real-estate investment trust). They own a range of mostly commercial properties and hope to make money out of rental and rising property prices.

Examples include Land Securities, British Land and Segro. I wouldn't like to suggest which to go for though, or even whether the principle is sound or not.

Thrugelmir

TR Property Investment Trust plc is a solid fund if you want a diversified holding in the property sector.

panter

Housebuilders! If you want euphoria, invest in housebuilders. If you want utter despair, invest in housebuilders.

I've been in for the last three cycles of boom and (almost) bust. It is a very painful experience.

Don't do it.