Listed Property Trusts

[voltage]

tell me is it time to start buying property trusts or is there further down side.
Thinking about buying a residential rental but with the yield may be gearing into a few property trusts could be a wise investment.

[fungus pudding]

tell me is it time to start buying property trusts or is there further down side.
Thinking about buying a residential rental but with the yield may be gearing into a few property trusts could be a wise investment.

It's hard to know the answer, but I reckon it might just never get better buying than current prices. Sure as hell beats residential anyway - that's not for the feint hearted. Don't forget all listed trusts are PIEs.

[Billy Boy]

Thinking about buying a residential rental but with the yield may be gearing into a few property trusts could be a wise investment.

Voltage..... Do your sums
The cost of a residential rental & %% return on investment.
Add in :- rates, down time, mataince, the odd bad tennant, Taxables,
Mortgage, & IRD looking hard at you.
Now look at the LPT's
No hassels as in the above. No tax as they are PIE's. Just collect
the hoot.
Property values will return. Be it 2 -3 yrs time, but in the meantime
you are getting 10% - 13% on your investment (tax free) !!!

I have a lot of my money in these things. Started buying in when they
were higher, but have been steadly averaging down. In these times
I can find no better place for an investment, and am certainly not sorry
with what I have done. In fact when things do pick up I will be
reluctant sell because of the income.
Cheers BB

[777]

It will be interesting the take up on APT rights issue and KIP unit purchase plan next week.

[Billy Boy]

It will be interesting the take up on APT rights issue and KIP unit purchase plan next week.

Yes it will
I wonder about APT..... Market pricing them down....Mostly office space
..... Expensive buildings (hard to sell)..... Govt spending comming under
the hammer... hmmmmm
Maybe the 2:00pm budget will shed some light.
BB

[macduffy]

I don't hold APT although I have in the past.

The reason I sold them (and KIP) is that the property trust model seems to encourage managers to borrow and issue more shares to enhance their own income - usually a percentage of the trust's total portfolio value/income - without this necessarily being in the interests of unitholders.
However, I wouldn't be too worried about any attempts by the govt to reduce the bureaucracy. The usual result of such action is to put a lid on growth - for a year or two - then it's back to business as usual.

[voltage]

thanks for your comments
I have broker reports that suggest APT is certainly a must in a property portfolio. They all have their good and bad points. May look at a spread over the 5 property trusts. I would appreciate any comments.

[Balance]

Yes it will
I wonder about APT..... Market pricing them down....Mostly office space
..... Expensive buildings (hard to sell)..... Govt spending comming under
the hammer... hmmmmm
Maybe the 2:00pm budget will shed some light.
BB

APT is not in the business of selling properties. It buys with a view to growing rentals and capital values. Overgearing is the problem which has resulted in the other property trusts especially in Australia having to fire-sell properties.

Now is the time to buy, not sell, I would have thought.

[Dr_Who]

I bought some APT rights the other day at 6 cents.

A good long term portfolio stock.

[fungus pudding]

thanks for your comments
I have broker reports that suggest APT is certainly a must in a property portfolio. They all have their good and bad points. May look at a spread over the 5 property trusts. I would appreciate any comments.

My two cents worth as someone who has managed to grind out a living as a property investor over the last forty years is don't get too hung up on office bldgs. Brokers and bankers might understand them as they spend their time staring out the windows of them all day, but poor overworked landlords like me hate the sight of them. Light industrial/warehouse/showroom are good; so is retail, althought there is good and bad depending on location. I've got most of the trusts, but not APT, although I might buy a small smattering of them one day. But really office buildings are nearly as bad - and as unrewarding - as residential flats/houses.