For decades, Australians have had a love affair with property. While direct residential property has been the traditional form of investment, listed property trusts or real estate investment trusts (REITs) have risen in popularity in recent years. SG Hiscock is home to an award-winning global property securities team consisting of experienced portfolio managers and analysts, who focus solely on investing in publicly traded real estate securities and trusts. Read on to find out more about property securities and REITs to see if they might be right for you.
What are REITs?
Real estate investment trusts (REITs) are simply that – investment trusts that invest in real estate. You may also hear the term ‘listed property trusts’, these are simply property investment trusts which are listed on the share market. The S&P/ASX 300 A-REIT Index shows all of the property trusts listed on the Australian share market. There are stocks across the retail, office, industrial and hotel and leisure sectors.
- REITs are ideal for long-term investors
- You can start investing with just a small amount of capital
- They provide a great way to diversify your investment portfolio
- They have the potential for higher returns with higher risks
- Returns include both income and capital growth
- It’s easy to invest in both Australian and international property securities
Creating a Diversified Portfolio of REITs
Managed funds can invest in single or multiple listed property sectors. Some may also include exposure to direct property and international property securities. The main benefits of managed funds are that you can invest in properties you would not be able to access directly on your own and you can hold a portfolio of properties for a relatively small initial outlay.
Why Choose Property Securities or Property Trusts Over Direct Property Investment?
Purchasing an investment property is usually a massive financial outlay, and in addition, managing a rental property can be stressful and time consuming. Property managed funds allow you to enjoy the rewards of property investing without enduring the restraints that often associated with it. Property related funds are also a great way of spreading your capital over a broader market. However, investors should be mindful in choosing a fund that suits their investment needs and goals.
Property Trusts Vs Property Securities
A property trust is where money invested is pooled together from a group of investors and used to directly invest in residential or commercial property, or a combination of both. This is different from a property security fund, which invests in other listed or unlisted property funds.
To Invest in Property Securities or REITs, Melbourne Investors Should Work with SG Hiscock
We believe that having specialist property investors is the most effective way to manage a global property securities portfolio. Our team is highly experienced and has in-depth knowledge of the world’s major property markets as well as the macroeconomic conditions that can influence returns, allowing them to appropriately assess the risks and opportunities in different property markets around the world.
Get in touch with us today online or make an appointment to speak with our experts by calling (03) 9612 4600 today.