I had a look at the excellent returns in the Unit Trust Domestic Real Estate sector over the week-end. The Prudential Tracker fund Unit Trust (which includes Growthpoint and Redefine)in particular has given returns of 31% over the last year and 42% over the last three years. What do the formites think?
Do have a look at PTXSPY as well as buying on the stock exchange is cheaper than whats charged by those companies.Yes the capital gain was from a low after the sell-off in early 2009. The income u receive is also very good.Do remember its fully taxable as it is interest income.Do have a look at my blog on Real Estate on 2010plusstocktrends.blogspot.com
Listed property is all about the annuity income streams (dividend is not the right word here). The capital expansion is an added bonus. And from that perspective, I am not that impressed with PPXSPY it has a 5% income stream vs 8.5% that I am getting from Redefine. The purpose of PPXSPY as well as a unit trust, is to enable you to spread your risk across multiple schemes, but I think that this type of diversification is pointless, when it comes to listed property. Unit trusts have their place for stocks, but there are only a handful of listed property stocks to chose from anyway, and diversification = watered down annuity income, and unnecessary management fee overhead. My advise would be to chose 2 (max 3) listed property stocks and invest direct. From this perspective, you can't really go wrong with Growthpoint and Redefine (although, in hindsight, I would rather be with Growthpoint - as I only own RDF!!)