The Property Podcast

TPP401: What are property funds and why do they attract billions of investment? (Plus: CGT bombshell?)

5 snips
Nov 19, 2020
Dive into the world of property funds and discover how they allow you to invest in real estate without the hassles of ownership. Explore the benefits like diversification and reduced risk, while also weighing the emotional toll of fluctuating investments. Learn about the differences between open-ended and closed-ended funds, and what Real Estate Investment Trusts (REITs) can offer. The discussion also touches on potential capital gains tax changes, making it a vital listen for both seasoned investors and newcomers eager for simpler investment strategies.
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INSIGHT

Property Funds Provide Accessible Investing

  • Property funds let you invest in property without buying the whole asset or dealing with hassles like mortgages and solicitors.
  • This approach suits those with less capital or who want less hands-on involvement than traditional property investment.
INSIGHT

Funds Reduce Risk and Hassle

  • Property funds offer diversification, reducing risk by spreading investment across many properties.
  • They typically handle maintenance and voids, so investors enjoy returns without direct hassle.
INSIGHT

Commercial Property Dominates Funds

  • Commercial properties dominate property funds, with residential funds being a smaller share.
  • Many investors find commercial investment less familiar, needing extra education about asset classes.
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