REPLACE - Property - h1
REPLACE - Menu - .h4-list
1. Sectors
2. Potential benefits
3. Risks
4. Liquidity
5. Borrowing
6. REITs
7. Tax
8. Investing options
REPLATEMP - H2
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IC comment on 06/04/2023 P25 - passive funds will tend to hold equities .....list-body-text xxx
Liquidity - open-ended can be gated
ETFs - justETF > Filter Real Estate
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SEE NOTES AND DOCS IN WORD PAGES & NOTES > BRICKS > PROPERTY
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REPLACE - Sectors - H2
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1. Warehouses & industrial - includes Distrbution / Data centres / self-storage
2. Offices
3. Retail
4. Healthcare
5. Residential including student accomodation
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REPLACE - Property sectors - .h4-list
Different sectors. Have different characteristics.
Some property companies and funds focus on one sector, while others invest in a spread of different sectors.
Can invest in a preferred sector or a spread..
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Investing in property indirectly, either by holding shares in property or investing in property funds.
Enables the potential benefits of property ownership to be achieved from investing relatively small amounts.
Direct property by owning properties involves different considerations and is not considered here.
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REPLACE - Potential Benefits - H2
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Potential to recieve a regular income from rental income, with the potential for the income to rise over the medium to long term.
Potential for capital growth over the medium to long term through increasing property values.
Can provide protection against inflation.
Property values are less volaile than shares.
Can help to diversify a portfolio. Low correlation with shares.
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REPLACE - Risks - H2
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Property is illiquid. It may be difficult or impossible for properties to be sold, so it may not be possible to withdraw your money.
Property values can fall.
Rental income is not guaranteed. Existing tenants may vacate and it may not be possible to relet. Tenants may not pay rent.
Valuations are a valuer's opinion and they may not reflect the values that properties could be sold for. Valuations may not be current.
Propetrties can be expensive to maintain and manage.
Property company shares have greater correlation with shares compared to properties. Do not provide the same degree of diversifciation.
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REPLACE - Investing options - H2
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REPLACE - REITs
- Property
Companies - H2
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FTSE EPRA Nareit indxes - include:
FTSE EPRA Nareit Global Index
FTSE Nareit Developed Index
FTSE EPRA Nareit UK Index
FTSE EPRA Nareit UK Index - top 5 constituents:
1. Segro Industrial 19.4%
2. Landsec (Land Securities Group) Diversified 8.2%
3. British Land co. Diversified 7.3%
4. LondonMetric Property Diversified 7.0%
5. Unite Group Residential 6.5%
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Can develop as well as own properties
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Closed-ended
funds - H2
AIC Sectors - .h4-list
Property - Debt (5)
Property - Europe (4)
Property - Rest of World (2)
Property - UK Commercial (11)
Property - UK Healthcare (2)
Property - UK Logistics (3)
Property - UK Residential (5)
Property Securities (1)
Members of the AIC
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REPLACE - Open-ended
funds - H2
REPLACE - IA Sectors - .h4-list
Specialist - UK Direct Property
Specialist - Property Other
Members of The Investment Association
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Portfolio of properties
Usually a large cash holding to provide liquidity
Daily dealing but can be gated
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