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Property vs Property Fund
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MyOpinion Posted: 01-28-2010 13:38

Hi all,

I was interested to find out what the general perception is in investing in property (buying a house) vs investing in a good property fund.

I have done some research and the top property fund at the moment seems to be the Investec Property Equity Fund with returns over one year of 15.3%, 3 years 17.4% and 5 years 25.9% (as at 30 Sept 2009). Stanlib Property Income Fund has also done well with a return over last 5 years of  21.44% (as at 31 December 2009).

If you were not dependent on living in the property yourself, wouldn't it be better to invest in one of the above mentioned funds? You wont have the worry about the renting of your property and agent fees etc. etc.

I believe that property is your best investment and that you can't go wrong in the long term but I'm not sure if I should go property or property fund.

Welcome your ideas...

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Lee replied on 01-29-2010 7:38

Fantastic question, MyOpinion. Thanks for sharing those stats. I'll be interested in hearing some feedback on this issue too for long-term property investing.

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arendse replied on 01-29-2010 9:10

good question

 

i would also like to know

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Attie Claassens replied on 02-02-2010 22:28

If you still have a bond, nobody will convince me you should not make additional repayments if you are in the high tax bracket.

Here is proof. My unit trust portfolio are mainly with Stanlib and includes: Sanlam Inflation Plus, Stanlib Value, Stanlib Financial and Stanlib Multi Manager Property:

April '04   Property fund    R12,600     Total      R75,500

Dec '07                           R75,500                   R250,000

Jan '09                            R94,000                   R245,000

The Property fund provided a considerably amount of stability and growth to the portfolio during the recession.

              

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Attie Claassens replied on 02-02-2010 22:31

Correction: Jan '09 should read Jan '10.

Please take note. No additional funds were added to the portfolio during this period.

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Avinash replied on 02-03-2010 14:06

hi.

 

please explian your table, is it beginning and end values and for which fund, or is it in total.

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Attie Claassens replied on 02-03-2010 14:22

April '04 was when I started keeping record of the fund values with the value of the property fund as R12,600 and the total value of the portfolio as R75,500. Dec '07 shows the highest value of the portfolio before the market crash. Jan '09 is obviously the current value of the portfolio.

If the need exist I will create a spreadsheet sothat people can track they own portfolios and the performance on a monthly basis.

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Avinash replied on 02-04-2010 12:00

Hi.

 

this means that you have got over 100% return on investment for the property fund, thats excellent.  Please can you give me the name of the property fund and which property funds do suggest I invest in and do you suggest monthly or a lumpsum investment.   Also please can you tell me how do you calculate  return on unit trusts where for example you have been contributing for 10 years by debit order and the contributions were increasing every year.

 

thanks

Avinash

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Attie Claassens replied on 02-05-2010 14:50

I am not a practicing financial planner, neither is this site the place to make spesific recommendations. You either need to make up your own mind or consult a financial planner/advisor. I did mention the fund I am invested in. Monthly amount or lumpsum? Why not both? I have ask a contact at RMB Private Bank to help me with a spreadsheet for compound interest the way you enquire. To back track the return of funds and particular your personal investments is almost impossible if you did not keep precise record.

The best I can do is to draught a spreadsheet and small document explaing how I do it and upload that to the file section in my Profile.

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