Listed Property Trusts

[Onion]

Applied for $50,000 worth. Got 24640 shares which is about 75%.

You did well. I got $4319 worth from a bid for $15k. About 29%.

[Entrep]

Not much mention of Stride in this thread. The price action looks bullish and they have done well the last few years too.

[epower]

Due to being down to one income with a stay at home parent for the next several years our lending capacity has hit a cap, hence looking for alternatives than just paying down debts on buy and holds.

Enter property funds…

I understand enough about them. However just a few things I’m looking to clarify on the difference between listed and unlisted funds

Listed property funds
- listed on share market so very liquid can sell within minutes. 0.5% fee generally via brokers to enter/exit
- volatile in price due to liquidity
​​​​​​- you can nab a bargain in market crashes with yields go up due to price vs NTA going down
- funds issue more shares when buying more property, often to big institutions
- PIE for tax

Unlisted
- secondary market can be hit and miss when want to sell might take a month or two
- 1.5% to 2% fee to get in and out on secondary market
- not so volatile due to less liquidity
- harder to get a true bargain as people owning not likely to panic sell like listed shares would
- funds do public raising when want to issue more to mum & pop investors
- PIE for tax

So for unlisted, other than the reduced volatility I really don’t see any benefits to swing that way (PMG, Oyster, Augusta, etc) instead of buying into the listed ones (Argosy, Property for Industry, Goodman, etc)

What are the benefits of unlisted that I’m missing here?

[fungus pudding]

Due to being down to one income with a stay at home parent for the next several years our lending capacity has hit a cap, hence looking for alternatives than just paying down debts on buy and holds.

Enter property funds…

I understand enough about them. However just a few things I’m looking to clarify on the difference between listed and unlisted funds

Listed property funds
- listed on share market so very liquid can sell within minutes. 0.5% fee generally via brokers to enter/exit
- volatile in price due to liquidity
​​​​​​- you can nab a bargain in market crashes with yields go up due to price vs NTA going down
- funds issue more shares when buying more property, often to big institutions
- PIE for tax

Unlisted
- secondary market can be hit and miss when want to sell might take a month or two
- 1.5% to 2% fee to get in and out on secondary market
- not so volatile due to less liquidity
- harder to get a true bargain as people owning not likely to panic sell like listed shares would
- funds do public raising when want to issue more to mum & pop investors
- PIE for tax

So for unlisted, other than the reduced volatility I really don’t see any benefits to swing that way (PMG, Oyster, Augusta, etc) instead of buying into the listed ones (Argosy, Property for Industry, Goodman, etc)

What are the benefits of unlisted that I’m missing here?

Monthly distribution will be a benefit to some.

[NZSilver]

Listed investment property is diversified with many properties vs the unlisted/syndications that usually have less so therefore tenant risk is higher. Fees on unlisted can be huge and it's usually the managers who win out and take little risk. Listed would usually have higher quality asset too. I have looked at a fair few but often the headline yield numbers are not as good so I just buy more listed when I have funds. I'm pretty inexperienced in it all but intemperance reading a good article by Bryan gaynor or how listed property is often a much better option. You do have the daily share price movement but can Ignore them on the whole. I like arg for it's diversity and kpg for it's value

[Waltzing]

"I like arg for it's diversity and kpg for it's value"

absolutely....KPG will lag a bit though. Dont get MR B going on that one.

[fungus pudding]

Listed investment property is diversified with many properties vs the unlisted/syndications that usually have less so therefore tenant risk is higher. Fees on unlisted can be huge and it's usually the managers who win out and take little risk. Listed would usually have higher quality asset too. I have looked at a fair few but often the headline yield numbers are not as good so I just buy more listed when I have funds. I'm pretty inexperienced in it all but intemperance reading a good article by Bryan gaynor or how listed property is often a much better option. You do have the daily share price movement but can Ignore them on the whole. I like arg for it's diversity and kpg for it's value

I have a fair pile of LPTs, but I am also in a few syndicates. All of this stuff will eventually be bequeathed to younger family members and I like the limited liquidity of syndicates for that reason. Leaving lpts to many of them would be like handing them a truck-load of cash. An assett that would be difficult to instantly cash-up has a certain appeal for gifting - for obvious reasons.

[NZSilver]

Yes a good point fungus, I'm in my early 30s so hopefully I don't have to worry about that for a little while. Waltz yeah definitely don't mention the "K" word to Mr B

[epower]

Listed investment property is diversified with many properties vs the unlisted/syndications that usually have less so therefore tenant risk is higher. Fees on unlisted can be huge and it's usually the managers who win out and take little risk. Listed would usually have higher quality asset too. I have looked at a fair few but often the headline yield numbers are not as good so I just buy more listed when I have funds. I'm pretty inexperienced in it all but intemperance reading a good article by Bryan gaynor or how listed property is often a much better option. You do have the daily share price movement but can Ignore them on the whole. I like arg for it's diversity and kpg for it's value

So if the yields are comparative but the fees for unlisted are higher and the diversity worse and liquidity worse who in their right mind would buy unlisted instead?

[fungus pudding]

So if the yields are comparative but the fees for unlisted are higher and the diversity worse and liquidity worse who in their right mind would buy unlisted instead?

No need to buy them instead, but no harm in buying a few as well.