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Domestic Real Estate Unit Trusts

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mikki
Contributor
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?
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3 REPLIES 3
barry_1
Super Contributor
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
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mikki
Contributor
Thanks a lot, Barry. I appreciate your feedback.
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Not applicable
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!!)
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