Thoughts re property funds?

masonic

Aged said:

masonic said:

REITs held in either an ISA or UK pension scheme qualify for gross payment of property income distributions, and these are tax exempt due to the wrapper. So I don't think those concerns are relevant to your situation of wishing to hold in a pension.

Does 'UK pension scheme' = a SIPP?

Yes, a SIPP would qualify as a suitable tax wrapper.

Aged

After much researching and investigating, I have come to the conclusion that for me and my situation, property share funds are not what I'm looking for in my portfolio. They are a completely different animal from the PAIF that I'm seeking to replace. I guess I either go against the general advice, accept the risk of suspension and choose another open-ended property fund, or omit property from my portfolio going forwards. Would be interested to hear from anyone currently invested in a UK Direct Property fund and satisfied with it, but in the meantime thanks for everyone's input.

Linton

Prism said:

Linton said:9

Prism said:

Linton said:

dunstonh said:

Aged said:

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

Bricks and mortar property funds are problematic.    Property share isnt.

True, but I dont see property holding equity as any thing like the same thing as a holding of property.  Surely the point about buying actual property is that it is independent of the volatility of the stock market.  The failure of property OEICs thanks to the demands of fund holders wanting instant access to their money removes property completely as a viable investment for the small private investor.  Unless someone knows of some other vehicle.

REITs or funds of REITs?

Wont REITs and thus funds of REITs be subject to market volatility, which is what one is trying to avoid by buying property? Though looking at the graphs that does not seem to be the case - why not?

The property sector is pretty volatile - more so than general equities, That is the trade of vs liquidity. Not sure anyone is trying to avoid that especially.

Many years ago property was a major component of investment portfolios alongside equity and bonds. The steady income from rents provided additional diversification and a steady return similar to bonds but not correlated with them. 

With the inability of the open direct property funds to handle liquidity problems and the resultant costs it would seem that property is now merely one of many equity sectors alongside raw materials and tech with the resultant volatility and speculative booms/busts. As such I see little justification for paying more attention to it than any other sector.