Kuta Beach

Kuta Beach

Wednesday, 4 August 2010

Exchange Traded Residential Real Estate Fund

According to the article Class Divide: Property vs Shares, in 2011 (next year) there will be a security that you can buy on the ASX that will allow you to track Sydney house prices.

"Whether people want to hedge their own exposure, or start their kids investing in an index that will keep up with property prices, it would work the same, " he says. Joye says this listed product should arrive on the ASX next year.

"We're working with the ASX to list a security that covers an index of Sydney housing, which will give investors exposure to the performance of residential real estate but, more importantly, will give them the low volatility of the index.

2 comments:

kristin said...

The value of Equity REIT - REIT, that invests in real estate rather than homes - according to the background value of the property and receives rental portfolio. Many REITs invest in things like malls and hotels. These characteristics are closely linked to the economy, leisure and commercial rates tend to vary with the economic health of our country.

Richard said...

Kristin, REITs do do tend to invest in malls and hotels. The exchange traded residential real estate security referred to in this blog post refers to a security that tracks residential house prices using futures contracts, so it's a different product and not a REIT.