Why invest in property funds?

If you’ve ever had a chat with friends or family about investing, chances are you’ve been advised to get into property. While it’s a truly low-risk investment alternative, real estate may seem difficult to get started in for a lot of people who feel daunted by the escalating property prices.

The alternative to owning a physical property is to invest in the real estate market through property funds. A property fund is a mutual fund that invests in publicly-listed real estate companies. It gives an individual the opportunity to invest in a range of properties through the purchase of stock. Property funds buy you a stake in real estate companies listed on the Johannesburg Stock Exchange (JSE) – saving you the headache of maintaining property and dealing with dodgy tenants.

  1. Headache free – invest in property, without having to deal with tenants, or property maintenance yourself
  2. Great returns – exposure to the growth of the shares, dividend payouts, underpinned by capital growth on the assets
  3. Exposure to offshore property markets – hedge against currency volatility
  4. Low barriers to entry in to these funds
  5. Funds are liquid and can be paid out within 7 working days
  6. No need to pay transfer costs and conveyance fees

Contact us today to find out how you can start investing in property funds.

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