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ivan j

Property fund investment

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Afternoon all,

Do any of you invest in property funds?

I am starting to research this area and would be interested to hear of others experiences.

Cheers

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Following one private message, let me clarify...

I am talking here about property equity funds, for example, the Aberdeen UK Property Class I Accumulation fund (to take the first off the list at Hargreaves Lansdown). 

I presume most of these funds focus on commercial property, I have only found one build to rent UK fund, focusing on London (Greystar). 

Seems to be a massive gap in the market for a build to rent fund outside London for private investors. 

 

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@ivan something that I am familiar with based on 50 years of personal investments/investing

disclaimer: past life as an individual sophisticated investor - I have never worked in the investment industry.

FWIW for information purposes only

reward for risk & even in a fund 'there are zero guarantees' with a 'past performance is not indicative of future results'

are you specifically looking at private 'property related investments, funds or even stocks', ranging from - closed end funds, trust units/unit trusts, REITs, private Bonds or small private property developer JV investments?

property related funds include Mortgage funds, including REIT's or property funds that are specific, either commercial, residential, retirement, healthcare/care homes, caravan sites....

property related private companies or LSE listed companies even some huge in North America usually have a basket of investments or funds such as the Aberdeen funds.

for reference purposes, look at the performance/returns, NAV, management fees.... is this an investment that anyone put their money in?

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000WY19&tab=1

there are probably more than 100 possible ways to invest your money in property.

when investing in a property type fund or investment 'always do your due diligence as well as this' 'are the fund owners/managers in it for themselves, do they feed themselves first even if there is zero return to an investor or the unit price/stock price waffles'?

like any financial adviser who only cares about his/her fees, I could suggest (not recommending) a few property related funds/investment - but I won't, because I wouldn't want to be blamed for steering in the wrong direction or be accused of being someone that is not allowed to or licenced/regulated to give investment advice.

hint: google ... morningstar.co.uk 'funds'

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Beware - sometimes redemptions are difficult if a fund does not keep enough cash - rather than be forced to sell a building they can close redemptions which may cause problems for you if you want your cash.

do you research thoroughly before investing to know whether you are investing in physical buildings or shares of building companies.

good luck :)

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whether private or publicly listed companies offering folks investment in them - its all about 'buyer/investor beware'

due-diligence like anything else - all of the financials, what they do, what they those companies are invested in as well as who is at the helm.

then a look at the 'Balance sheet' - assets, liabilities, income, expenses, liquidity, the financial ratio's if its a stock market listed company (EPS, P/B, EPS) plus the NAV if its some sort of fund & a look at the folks running it, - no different than an individual having or investing in a BTL, HMO or investing in whatever else.

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