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Listed Property

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jo_soap
Contributor
Hi All I am building a long term investment portfolio, trying to concentrate on shares with a decent dividend yield and am reinvesting the dividends. I am quite keen to buy some listed property shares so that I have some exposure to property. Which one (s) should I investigate? Your help is much appreciated.
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21 REPLIES 21
Not applicable
I'd go for the one or two based on residential as commercial might be a bubble waiting to pop.
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Super Contributor
The person to talk to is Barry.. I am not sure of his email but I know he has a blog.. get in touch with him.
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Super Contributor
Vukile (VKE) my favourite prop. stock.
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Valued Contributor
why do you think commercial is a bubble waiting to pop ??

an have a look at the property etf .. proptrax ..
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Super Contributor
Hi Jo Soap. Keep in mind that many of the property shares pay interest and NOT dividends. Interest is taxed while dividends are not.
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Not applicable
Also recommend you search Louisg's comments in some other listed property threads - he makes a good argument against listed property, with their high debt - which should be weighed against us listed property fans, like me, who argue that the debt/equity ratio does not apply to listed property, since it is the manner in which they use their debt that is the relevant component here
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Not applicable
Because the newly completed flashy commercial block in my street took ages to get tenants, and even now, almost 2 years after completion, its still only partially filled. Whereas people will always need a place to live. My feeling about commercial property is similar to your take on gold - maybe I don't understand it.
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Super Contributor
I'm not dead against listed property. Listed property certainly has it's investment merits, I simply prefer high dividend yielding shares. It's an individual choice. As for high debt levels. One only needs to look what effect debt had on Liberty International. Nothing wrong with debt, just ensure that one can service it,ie POSITIVE CASHFLOW. 50% gearing will ensure a doubling of capital on the way up, BUT, a 50% decrease in value will ensure your capital is wiped out. The absolute results are the same (-50% and +50%), however the effective results are not. The negative result far outweighs the positive result in my opinion.
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Super Contributor
geez you are risk adverse... Liberty was hurt by sentiment but also ego.. they wanted to own Covent garden which does not really fit their normal portfolio... they bought it with to much dept right at the top of the market.. but evey thing you say is true... oh and thanks for taking up the challenge of matching Chartist sponsorship..NOT.. you tight fisted ####.
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Valued Contributor
ya, but is that bubble or recession ??
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Highlighted
George_1
Occasional Contributor
I'd go for the highly valued ones. Growthpoint,Resilient and Redefine. Maybe Hyprop... Doesn't seem like there's anything else there. The rest are risky ..............
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jo_soap
Contributor
Have just logged on now and seen all the responses. Thanks everybody. I will go now and do my homework.
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Not applicable
Im my opinion hopelessly overpriced, therefore a bubble, but one man's definition of a bubble could be another man's buying opportunity.
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Super Contributor
None of the top loan stock went under during this depression,but if you want less risk rather buy the PROPERTY UNIT TRUSTS which are not allowed to borrow money to invest in property ,now called the REITS. They are EMIRA,FPT (first property trust, started by standard bank,many moons ago and gone through many name changes and owenrs) SYCOM,CAPITAL ,SA CORP.The full interest(taxable ) is payed out and is not taxed at company level ,but in the hands of the investor(you) which might then be less than the company tax. Capital growth since June 2009 has been in the region of 50%,but that was because of the rapid fall the previous year.One can usually expect capital growth to average 12% yearly and a rising interest payment(against your original investment amount),which is now around 7% Have a look under PROPERTY PROFILES at past payouts.
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Super Contributor
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Frequent Contributor
hey hey Barry, long time no chat! So what's your take on the medium and high risk ones? Say hi to Naomi for me, will you?
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jo_soap
Contributor
Thanks Barry. I will look at it..Tax free interest is about 22K Pa. Not there yet so Tax is not an issue at the moment.
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Super Contributor
Just hall out your wallet and put your money were your mouth is.. after all how can a trader afford to sponsor aids babies when a long term investor like your self clearly either can't afford it or worse simply won't... WWW. charitychallenge.co.za today is the last day to come to the party..And if you did not see the post it was called... "Who would like to pay to see me suffer"
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Super Contributor
Hello Ditzy thanks,I wondered if were still on this site.I mentioned your handle a couple of times ,when the question was asked where are they now in posts,but never a peep out of u.We are still muddeling along.As far as higher risk ,one must consider taking loan stock as they out perform PUTS any day.There has been an amalgamation of PLS these days so I feel are not really risky. I would take one such as Redefine which also is starting to build overseas assets.Growthpoint is also looking at overseas markets.Do have a look at my web-site barryvision.webs.com and go to the real estate page for further info. Regards.
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