global property investment query

Linton

As ColdIron says, you need to look carefully at Property funds as there are a range of options. If you want property as a diversifier from equity you can buy a fund that invests directly in property eg PAIFs (an UT/OEIC front end to a REIT), M&G or Standard Life. Their value and returns directly reflect the value of the property and the rent received, so they arent subject to the ups and downs of the stockmarket and therefore are very much less volatile than equity. The downside is that you may be restricted in selling during the bad times because the fund cant easily dispose of a shopping mall or two to pay you. Direct property funds keep a reserve of cash for this, but it's of finite size.

You could buy an IT that invests directly in property. As the IT is a company quoted on the stock market its value will change according to market conditions with a discount or premium to the value of the underlying property, so you get less diversification than with a direct property UT/OEIC but minimal risk of being unable to sell.

Finally you can buy a fund that invests in the shares of any business that has anything to do with the property sector. So even less diversification from the general market.

And then there is the question "what is property". Mostly it is shopping malls and office blocks. However there are a number of niche areas such as doctor's surgeries, student accommodation that have been lucrative and may be more stable in price..

kidmugsy

My memory is that Value and Income IT holds a decent part of its assets as direct property investment, or at least that it used to. You could check.

dutchism1958

Thank you to Coldiron,Linton and Kidmugsy....a wealth of information that I am going to digest and research.It is this kind of support that helps the likes of myself in getting to grips with the understanding of what can be complex issues in a far easier and quicker fashion!.