trusts are mutual funds for investing in, and the development real
estate. Most large developers have their own property trusts through
which they obtain finance to develop, and invest in real estate. They
consist of a large number of shareholders each with a small
investment in the total number of projects. The advantages ot
investment in property trusts are:
from spread of investment.
- ability to
profit from capital gains
- more liquid
than the direct investment in real estate.
managed for the investor.
are 2 types of trusts:
of units are quoted on the stock exchange. The costs of buying, and
selling are standard stock exchange rates of commission. Such trusts
are long term trusts without a date for termination.
rapidly expanding area of trusts. Units are sold through licensed
investment advisers, trust managers' own sale teams of licensed
representatives. Unlisted trusts have an average life of about 10 years.
are 3 areas of concentration:
in quality properties by the trust will be on the basis of a long
growth strategy. That is, income per share may be low especially during
the initial stages but the prospects of future capital gains are high.
may concentrate on investment income property at the expense of future
trusts will show high income with no capital gain.