Property Stocks

[Bling_Bling]

I find that interesting that there are no listed company with exposure to the residential property market. With the booming residential property market there would be some interest from investors.

[duncan macgregor]

The big downside of property stocks that never gets a mention here is natural disaster. Wellington sits over a fault line, Auckland has its volcanoes. We in NZ are at a higher risk than lets say London or Sydney. To be successfull, it is a must in business to take into account every possibility that the unexpected can be expected to happen sooner or later. It must come when the unexpected rears its ugly head. The chance that it can happen and you will lose the lot is a slim but realistic chance. macdunk

[nelehdine]

Wouldn't do Trustpower much good if all their wind-turbines east of Palm.Nth were suddenly lying flat on the ground due to an earthquake either MacDunk ..... come on you can't be serious that we should be thinking about Auckland's volcanoes suddenly erupting when we are making investment choices !!

[duncan macgregor]

NELEHDINE, At least you are thinking about it.
A bigger chance of that happening than you winning lotto and i bet you buy a ticket now and then. CHEERS MACDUNK

[nelehdine]

As I've mentioned before Bling Bling, anyone can slowly buy surely put a residential investment portfolio in place ... pretty difficult to put a Botany Downs or Vero Centre in your portfolio !! I think a listed residential investment company is a non starter ... no certainty of cashflow, tenants can up-sticks with 3 weeks notice, can trash the place and disappear overnight, R&M is far higher on residential than commercial, rates paid by landlord rather than tenant, terrible yields on anything decent ... the list goes on. Residential property investment IMHO is not a suitable investment for a listed company ... better off for individuals to do it for themselves.

[Steve]

Didn't TTP get landed with some residential properties in Auckland & Christchurch when flogging off the Finance Centre?

Does that count for listed residential property exposure?!

[SEC]

quote:Originally posted by Bling_Bling

I find that interesting that there are no listed company with exposure to the residential property market. With the booming residential property market there would be some interest from investors.

Doesn't that give you a clue on how bad an investment residential property is?

The only way such a listed company could ever make money would be from the capital gains made after selling rental properties.

As every landlord knows, net cashflow from rentals is lousy (and negative in many cases), tax losses are usually made, and the return on investment is shïte until the property is sold.

Even if the residential property trust made money from buying and selling property for capital gain, the returns would be very cyclic and the capital gains would be taxed.

Compare this to a 5+% return after tax for most listed commercial property trusts in good and bad times.

SEC

[croesus]

Nele is right...residential is for the middle classes, though to be fair better then giving your money to fund managers or insurance companys.

I consider AIA a property co with a twist....

Query do WHS own or lease their premises?

[Steve]

I think WHS own some and lease some. There are WHS sites occaisionaly marketed by Bayleys.

[zac]

Was not Olly Newland's listed investment Company set up for investing in residential property? (before going belly up).