Wednesday, February 21, 2007

Property Unit Trusts

Property Unit Trusts can be listed or unlisted. Listed property trusts are property trusts which are listed on the stock exchange. The unit trust owner will know the value of the investment everyday . They are better diversified in terms of risk of non-performing properties. However, the volatility of the market may affect the price of the unit without regard to the property unit trust’s performance.

Unlisted property trusts are property unit trusts not listed on the stock exchange. These trusts are revalued at least once every eighteen months. Unlisted property trusts have higher front-end and management fees than listed property trusts. Furthermore, evaluation of the trust is more difficult as to both performance and property portfolio.

Overall, property trusts are one of the safest investments in real estate and can provide good returns on your investment.


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