Property investments are a key asset class of any portfolio.

The types of property investments are:

Direct Property

• Property directly purchased by you is a tangible asset but illiquid.
  
  
• You can borrow against it
  
  
• It will generate rental income as well as potential capital growth.
  
  
• It is a long term investment for you.

  Other considerations

• A significant deposit is required to purchase.
  
  
• Associated purchase costs, such as stamp duty, can be high.
  
  
• Other issues to be considered are poor tenants along with maintenance, repairs, rates and human the drain of personal effort.

Property Trusts

• Are investments which are unitised and are generally offered by Fund Managers and Institutions. It is not necessary to have a high in-going capital amount.
  
  
• Maintenance and administration issues are assumed by the Fund Manager for a predetermined fee.
  
  
• They also provide income and potential for capital growth, but have limited liquidity as the investment is usually for a set period, e.g. 5 years.
  
  
• The liquidity of investments in property trusts can depend on the type of trust:
  • With listed trusts a prompt exit is possible.
  • With unlisted trusts exit can be restricted, for example where the investment is for a set period, e.g. 5 years.

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