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How much should property should I have in my portfolio?
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Alex Ward
Posted: 06 February 2019 10:48:53(UTC)
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Hi all,

Interested to get views from you on how much property one should have in their portfolio?

What are peoples views on:

- REITS, which ones are best and why?
- Fractional Ownership, e.g. Property Partner
- Development debt, e.g. LendInvest
- Buying property direct, i.e. Buy-to-let

Should I be increasing or decreasing my exposure to property the older I get (currently 40ish)?

All thought most welcome,
Thanks,
Alex
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mcminvest on 13/02/2019(UTC)
Mr Helpful
Posted: 12 February 2019 15:13:37(UTC)
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Alex Ward;76898 wrote:
1. Interested to get views from you on how much property one should have in their portfolio?

2. What are peoples views on:
2.1 - REITS, which ones are best and why?
2.2 - Fractional Ownership, e.g. Property Partner
2.3 - Development debt, e.g. LendInvest
2.4 - Buying property direct, i.e. Buy-to-let

3. Should I be increasing or decreasing my exposure to property the older I get (currently 40ish)?
All thought most welcome,
Alex


1. If held in illiquid BTL then 50% max seems prudent.
The other 50% to be a liquid portfolio.
Would reconsider if residential BTL did not seem in something of a price bubble, as measured by today's low rental yields.

2.1 The choice is overwhelming.
With sector under the cosh, good value seems aplenty presently, but could fall further so reserve ammo might be useful.
2.2 No experience.
2.3 Ditto
2.4 Already discussed.

3. Presumably CHT and IHT will tend to drive these issues ?
See no reason to vary voluntarily other than price fluctuations.

Good Luck
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mcminvest on 13/02/2019(UTC)
Big boy
Posted: 12 February 2019 16:14:56(UTC)
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YES.......I am sticking with old established cos. BLND . LAND,Hammerson and Great Portland all bounced last few weeks by about 10% but still cheap in my view.
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4 users thanked Big boy for this post.
Mr Helpful on 12/02/2019(UTC), mcminvest on 13/02/2019(UTC), Aidan MacGinley on 13/02/2019(UTC), dandigirl on 20/02/2019(UTC)
Alexander Johnston
Posted: 12 February 2019 17:25:10(UTC)
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Most people who own their home or are paying off their mortgages already have enough exposure to property IMO.
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Balvenie on 12/02/2019(UTC), guantou on 13/02/2019(UTC), Captain Slugwash on 13/02/2019(UTC), raybd on 13/02/2019(UTC), mcminvest on 13/02/2019(UTC), Tim Dr on 22/02/2019(UTC)
King Lodos
Posted: 12 February 2019 17:37:40(UTC)
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I've flip-flopped on that one .. There is the perspective, popularised in Rich Dad Poor Dad, that your house is a liability – not an asset.

I think it's a grey area – in that you can profit from house prices, and you can take in a lodger and generate income .. but most of us don't .. We're usually selling to buy into the same market, and we don't generally want lodgers.

I think property's a genuinely useful diversifier – you can also see REITs have far outpaced the S&P over 20 years .. But at the same time, the long-term trend of property prices should only track inflation (otherwise, over 200 years, houses wouldn't be affordable for anyone) .. I'd say 10-20% Property improves most portfolios.

https://static.seekingalpha.com/uploads/2018/12/47644028_15446902127548_rId7.jpg
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Balvenie on 12/02/2019(UTC), mcminvest on 13/02/2019(UTC)
Keith Cobby
Posted: 12 February 2019 18:13:32(UTC)
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I exclude my house as a non-liquid asset. The only property investment I have is TR Property which I have held for decades. Although mainly invested in property securities it has very good long term performance. I have held other property trusts but sold and topped up TRY. A core holding for me.
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Big boy on 12/02/2019(UTC), mcminvest on 13/02/2019(UTC), Bellabeck on 13/02/2019(UTC)
DIY Investing
Posted: 12 February 2019 18:25:28(UTC)
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I think the party is well and truly over for buy to let. Political parties of all colours seem to have a vendetta against landlords. It's no longer a tax friendly option, and most lenders will insist on 25-40% deposits. For most this will mean having to over allocate to property whilst taking on a load of debt and what with rising rates....

Plus, not only would you likely be over exposed to property, you would be over exposed to UK property. Actually you would be over exposed to property within a particular area of the UK.

IMO, REITs are the best option. They can offer more geographical diversification. BMO's (formally F&C) REITS might be worth considering, and alternative REITS such as BBOX might be worth a look, but there are loads out there.

However, a Global REITs tracker might offer the best diversification. IShares Global Property Securities tracks the FTSE NAREIT index. Although it seems a low cost option at 0.20%, this actually adds another (all be it small) layer of costs because all those REITS it holds have ongoing charges as well. But it allows you to effectively buy the market.

As regard Property related debt, there are things like SWEF. In the US they might consider this a 'Mortgage REIT'. Good yield but it's a bit like buying bonds over shares so you wouldn't be buying actual property where values should, over the long term, track inflation.
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Mr Helpful on 12/02/2019(UTC), Campbell on 12/02/2019(UTC), Balvenie on 12/02/2019(UTC), mcminvest on 13/02/2019(UTC), lamlash A on 01/10/2019(UTC)
Shetland
Posted: 12 February 2019 22:13:31(UTC)
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I have a range of REIT's in my portfolio to offer a defensive element. I think it is important to invest in a variety of sectors and I have interests in warehousing, UK and Europe, care homes, GP health centres, social housing, small local shopping centres not large national retailers, industrial and commercial property outside London and the south east.
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Captain Slugwash on 13/02/2019(UTC), Mr Helpful on 13/02/2019(UTC), Aidan MacGinley on 13/02/2019(UTC)
andy
Posted: 13 February 2019 06:33:38(UTC)
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Posts: 534
DIY Investing;77255 wrote:
I

As regard Property related debt, there are things like SWEF. In the US they might consider this a 'Mortgage REIT'. Good yield but it's a bit like buying bonds over shares so you wouldn't be buying actual property where values should, over the long term, track inflation

.


I came across the Twenty-Four UK mortgage fund / trust when researching other things. I did no research on it as it isn't something I am interested in but might be worth a read if you are in that area.

https://twentyfouram.com...s-fund/fund-literature/

Andrew
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tinca tinca
Posted: 13 February 2019 09:51:09(UTC)
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Joined: 03/12/2016(UTC)
Posts: 49
Does anyone have any thoughts on Legal & General UK Property Trust PAIF Class I ?
It's been pretty consistent over the last couple of years.

Is it a buy and hold or, with Brexit just around the corner, a sell now and run for the hills fund?

@KL - if i recall, didn't you have a holding?
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