with all the searching neccessary and the almost impossibility in returning better than an average of 5 pecent on renting a domestic property it seems a good idea (i think) to invest in unlisted property trusts. does any one have any feedback on what i should look out for or which funds or company is highly regarded? any help would be appreciated.
stephen g
hi steveadel
couple of things
1. not sure if you know what aunlisted property trust is and if you do then you would know that you can’t advertise aunlisted property trust because the are also called syndicates
2.and unlisted property trust is as the name suggests is a unit trust that is put together to invest in property(that is a very simplistic statement and there is alot more in them)
3. under asic you are not allowed to advertise if the value is over 2mil or aimed at more then 20 people and unless you are going to invest in a project under 2 mil and you will find few if any that are down at that level unless they are building a house and the trust is two units you will not qualify.
4.most of the successfull unlisted property trust are formed by like minded investors me being one of them that organise ours.
5. There are alot of large groups but the fees and charges out strip return.
you can pm if you wish but this is not to be seen as any form of advertising.here to help
Grossrealisation, you haven’t got it completely correct, there are some very large unlisted property trusts, some of which are open ended some closed. These are operated by companies with a Financial Services License, same as listed vehicles. I agree that the fees for these often make them unattractive.
Regards
Alistairhi APerry
yes I agree there are but they are a long time investment that can and do make money it just that you must know what type and what they are investing in and steveadel need to do a bit of resurch to see what he wants there is agood article in the current issue of australian property investor of these type of investments and the differences between them.
it is one of the fastest growing markets and just like franchising (front runner currently and unlisted property trust are running second to my information) ( which I am involved in both to different degrees)unless you know what you are investing in is not a markets for the money under the bed investor.
I maybe wrong and if I am steveadel can correct me but the first part of my post was that not sure if he new what they are and if you don’t then learn until you do and even the large are unit trust which in essance is a syndicate of unit holders.
as for them holding a Financial Services License I have a little quote that I go by and that is theres more stolen with a pen then there is with gun and just because they have a license to be a Financial Services License or a plumber do your own research and if the numbers stack up then invest.
Just because a person wears a suit doesn’t mean he hasn’t just changed out of his prison greens.here to help
I have an older book by Austin Donnelly called ‘Realistic Real Estate Investing’. It was written in the mid-to-late ’90s I believe.
In it he gives one piece of strong advice :
“Never invest in an unlisted property trust”.
Now I think blanket statements like that are always bad as they fail to take into account individual circumstances, such as the difference between a seasoned professional and a new investor. However, given the target market of the book (people with little real estate investing expertise), I would guess he meant ‘new investors should not invest in unlisted property trusts’.
I believe the reasons were a major collapse of UPT’s in the mid 90’s which most people have forgotten by now. I think this was because of the valuations given on properties underlying the trust were based on very high figures in boom times, and when the values came down the trusts were basically insolvent and most investors (having bought in at the top) lost almost everything.
I’m not trying to give advice on whether to buy or not, but you could flick through the book to get a dose of devil’s advocate. Not sure if it is still on sale though.
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We all need somewhere to live – but do we all need a CBD apartment?Hi Grossrealisation,
I agree with everything you are saying. I just thought your initial comments pointed to unlisted funds as only being smallish, when there are some very large ones.
It’s actually quite interesting going through the Financial services legislation. You can operate outside of its duristiction if you only deal with “sophisticated investors” (meaning wealthy people. Because of this people who operate syndicates as a business can offer much better products (ie lower fees) to wealthy investors as they don’t have to go through all of the crap and expense involved in getting a FSL.
Regards
Alistairhi APerry
If you ask me?? then you are outside this ruling automatically as you are sen as a sophisticated investors.
This side of business is very interesting and once you get involved you understand why I must admit that I can see both sides of the fence but we must work within the rules and not against them.
you need a what are you involved in page and the if an ivestor asks you to explain it them one on one it gets outside all these ruling as it seen as a request not an advertisment.here to help
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