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Listed vs Unlisted Property Funds

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  • Listed vs Unlisted Property Funds

    Due to being down to one income with a stay at home parent for the next several years our lending capacity has hit a cap, hence looking for alternatives than just paying down debts on buy and holds.

    Enter property funds…

    I understand enough about them. However just a few things I’m looking to clarify on the difference between listed and unlisted funds

    Listed property funds
    - listed on share market so very liquid can sell within minutes. 0.5% fee generally via brokers to enter/exit
    - volatile in price due to liquidity
    ​​​​​​- you can nab a bargain in market crashes with yields go up due to price vs NTA going down
    - funds issue more shares when buying more property, often to big institutions
    - PIE for tax

    - secondary market can be hit and miss when want to sell might take a month or two
    - 1.5% to 2% fee to get in and out on secondary market
    - not so volatile due to less liquidity
    - harder to get a true bargain as people owning not likely to panic sell like listed shares would
    - funds do public raising when want to issue more to mum & pop investors
    - PIE for tax

    So for unlisted, other than the reduced volatility I really don’t see any benefits to swing that way (PMG, Oyster, Augusta, etc) instead of buying into the listed ones (Argosy, Property for Industry, Goodman, etc)

    What are the benefits of unlisted that I’m missing here?

  • #2
    The only benefit on unlisted is you get paid monthly on some.

    The listed companies I invest get paid quarterly some annually.

    If you don't need the cashflow monthly I'd recommend spreading it over diversified listed funds, property, retail, finance, energy etc
    Less risky and same return.

    Instead of 50k into Oyster as per requirement, maybe 10k across 5 diversified investment classes at 5 to 11percent return pa.