Property Securities Funds, or sharemarket-listed
Property Trusts are unit trusts that invest in properties, a popular
alternative in Australia to investing directly in property.
Property Trusts are very liquid investments, meaning trust units
can be traded
regularly allowing investors to access and exit the market with
relative ease.
When considering investing in a property trust a number of factors
must be
considered:
- The Trust’s annual report. Check out the assets in the
trust and examine its performance in the past.
- Ensure the properties are well-tenanted.
- Consider the location of the properties.
- Review the qualifications of the manager.
Attempt to invest in Property Trusts whose prices trade at a discount
to the value of their underlying properties. In other words, the
property assets within the trust are worth more than the trust’s
value according to its unit price.
Finally, bare in mind that Property Trust investments should
be considered for
the long-term, at least five years.
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