What are the advantages of buying property shares?

[nmb]

There are many different ways to gain exposure to the worldwide real estate market and for those with perhaps little experience, or relatively modest amounts to invest, property shares may be a useful vehicle. While the main downside is the fact that you have no hands-on control and there will be management costs and suchlike going forward, it is not all bad news.

The many benefits of buying property shares are: –

• Placing your investments in the hands of expert managers
• The ability to buy and sell on the stock market
• Regular updates
• Taking advantage of the connections of those running the property company

Would you ever consider buying property shares on the stock market as opposed to direct investment in property assets?

 

[Nicholas Wallwork]

I personally wouldn't at the moment as I can get a better return and more direct control investing in and developing the asset itself.

That being said I would probably consider it later in my career when perhaps I'm looking for more hands off investments...

 

[Longterminvestor]

It is also worth noting the recent suspension of redemptions by a number of leading property fund managers in light of difficult property market conditions. While this is an extreme situation, many investors were left with investments they couldn't sell. Not good for any investor!

 

[jrtbartley]

Has anyone ever tried investing in property via one of those alternative platforms? I've heard they give you a lot more control over investments (ability to pick and choose rather than investing in a fund). Would love to hear anyone that has experience with these and what their thoughts are?

 

[realdeals]

Are you talking about crowd funding platforms?

 

[jrtbartley]

Yeah, I guess that is what you'd call them. Rather than P2P.

 

[Longterminvestor]

Whether you are buying shares in property company listed on the stock market, or unit funds, they will either be listed on the stock market or their own website. Private property investment trusts are a whole different ball game.

 

[diyhelp]

Liquidity is perhaps the main attraction for those looking at acquiring property shares/investment trusts as opposed to direct property. There will always be a buy and sell price for the shares, for almost immediate settlement, while house price transactions usually take longer.

 

[Longterminvestor]

Property shares/crowdfunding investments are good for those who need a hands-off type of investment. If you're more hands-on then good old-fashioned direct property investment will give you more control. It really is as simple as that.