Nathan
Hope this helps.
Listed Property Trusts (LPTs) allow investors to purchase an interest in a diversified and professionally managed portfolio of real estate.
Property trust investors gain exposure to both the value of the real estate the trust owns, and regular rental income generated from the properties.
The fund manager selects the investment properties and is responsible for all maintenance, administration, rentals, and improvements.
Most property trust managers include properties across a diversity of geographic regions, lease lengths, and tenant types.
Regular income from rentals is a common feature of LPTs, with most yielding between 6% and 10% per annum.
Part of this income may be tax deferred, therefore investors do not pay tax on the tax deferred portion of the income until their holding in the property trust is sold.
Because LPTs invest in relatively stable commercial real estate and investors receive regular rental payments, the price fluctuations of property trusts tend to be lower than for shares .
LPTs make up 12% of the world’s listed real estate assets.
The types of trusts currently available include:
Industrial – investment in warehouses, factories, and industrial parks
Office – investment in large to medium scale office buildings and parks, generally in and around major cities
Hotel/Leisure – investment in accommodation assets, generally 4 – 5 star properties in major cities or leisure assets such as theme parks
Retail – investment in shopping centres, malls, cinemas, and other shopping-related real estate
Diversified – investment in a mixture of Industrial, Office, Hotel, and RetailProperty Trusts give investors:
1) Regular income with exposure to real estate assets
2) Diversification into one or more types of commercial property
3) Returns from income and capital appreciation
4) An income stream with a tax deferred component
5) Capital stability with relatively low volatility.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
