Property Index fund

Moe_The_Bartender

Thrugelmir said:

Alternatively here's an investment trust that's been around for many years.
TR Property Investment Trust

The problem with TRY is that it’s 38% residential, much of it German, 15% retail and 29% offices. That’s not a good mix in the current climate and accounts for its poor recent performance.

Linton

Moe_The_Bartender said:

Thrugelmir said:

Alternatively here's an investment trust that's been around for many years.
TR Property Investment Trust

The problem with TRY is that it’s 38% residential, much of it German, 15% retail and 29% offices. That’s not a good mix in the current climate and accounts for its poor recent performance.

What mix of property sectors would you recommend? I dont see any property being very enticing, though perhaps that suggests it's a good time to buy.

Seldonista

Moe_The_Bartender said:

Thrugelmir said:

Alternatively here's an investment trust that's been around for many years.

The problem with TRY is that it’s 38% residential, much of it German, 15% retail and 29% offices. That’s not a good mix in the current climate and accounts for its poor recent performance.

What's wrong with German residential?

bowlhead99

Moe_The_Bartender said:

Thrugelmir said:

Alternatively here's an investment trust that's been around for many years.
TR Property Investment Trust

The problem with TRY is that it’s 38% residential, much of it German, 15% retail and 29% offices. That’s not a good mix in the current climate and accounts for its poor recent performance.

I would have thought it would be welcome to only have 15% retail exposure and under a third in office blocks if 'the current climate' is a concern. If using residential property for some income, Germany is not a bad place for it as they have more of a renters rather than homeowners culture than we do, in the major cities. I hold Phoenix Spree Deutschland, which suffered last year with the rule changes in Berlin, and then lost a third from February to mid-March, but has now come back 30% from its low. It will probably continue to plod along OK, even though its rapid early growth years since listing are now behind it.  Not a recommendation for a global property fund of course, just an observation.

Moe_The_Bartender

bowlhead99 said:

Moe_The_Bartender said:

Thrugelmir said:

Alternatively here's an investment trust that's been around for many years.
TR Property Investment Trust

The problem with TRY is that it’s 38% residential, much of it German, 15% retail and 29% offices. That’s not a good mix in the current climate and accounts for its poor recent performance.

I would have thought it would be welcome to only have 15% retail exposure and under a third in office blocks if 'the current climate' is a concern. If using residential property for some income, Germany is not a bad place for it as they have more of a renters rather than homeowners culture than we do, in the major cities. I hold Phoenix Spree Deutschland, which suffered last year with the rule changes in Berlin, and then lost a third from February to mid-March, but has now come back 30% from its low. It will probably continue to plod along OK, even though its rapid early growth years since listing are now behind it.  Not a recommendation for a global property fund of course, just an observation.

Just my personal opinion. If I were looking for property exposure at the moment, I would be buying the VT Gravis fund which I mentioned earlier in this thread.

sixpence.

Thanks everyone. Yeah having done a bit of research into this I can see that because property funds mostly hold commercial properties they actually correlate with equities so they aren't an optimum diversifier. Maybe it's actually better to hold gold? That does seem to still correlate inversely with equities?

dunstonh

Thanks everyone. Yeah having done a bit of research into this I can see that because property funds mostly hold commercial properties they actually correlate with equities so they aren't an optimum diversifier. Maybe it's actually better to hold gold? That does seem to still correlate inversely with equities?

Bricks and mortar property funds provide diversification.  Property share doesnt much at all as said.   However, you dont really want to be near bricks and mortar property funds for the next few years at least.