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new property derivative

Discussion in 'Real Estate' started by Nigel Ward, 11th Sep, 2008.

  1. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    New way to buy property | NEWS.com.au

     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi Nigel,

    Interesting concept, not sure if a derivative is such a good idea with so many shortsellers out there already.

    St George own part of a fund manager called Ascalon who run Fortuna Funds Management which invests directly into residential property. Fortuna Funds Management - Residential Property Trust of Australia

    Cheers,

    Dan

    PS This is general information and not a recommendation to buy, sell or hold any securities or managed funds.
     
  3. crc_error

    crc_error The Rule of 72

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    1,367
    Location:
    Melbourne, VIC
    In their PDS I don't see how they show the LPT sector as the highest performing sector out of all classes..
     
  4. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi CRC,

    Are you referring to Graph 1, page 11 of the PDS?
    http://www.fortunafunds.com.au/Documents/RPTA_PDS.pdf

    This graph shows that retail property, listed property, residential property and shares all return an average of over 12% pa. Like I've said in other posts, as long as your invested in growth assets you'll win in the end.

    If your referring to Graph 2 on the same page, I would say that the PDS date is 26 September 2006, it would be very interesting to see more up-to-date figures :)

    I can't believe there is still a thread about people saying whether shares or property are better. I think both is important for diversification and both can be leveraged 100% (some forum members haven't stumbled across Perpetual Investment Series and Macquarie Protected Loans which can be leveraged to 100% just like a property loan with a 100% LVR). Also think Long Term Capital Management which LVR'd to the max (and messed up!).

    I'm hoping that other members will realise this soon.

    Cheers,

    Dan