Your Property Game Plan: How to invest in through listed property

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Purchasing one home is enough of a task as it is, considering all the homework and research that goes into it. Especially the financial aspect of it all now how on earth you might be thinking are you supposed to invest in another or other properties. 

But of course you want to try or do it as after all investing in property offers long-term rewards and it’s still regarded as one of the safest permanent investments. Well, there’s a way by investing in listed properties.  

It requires less money to invest and you don’t need to raise a mortgage bond. Or deal directly with tenants whether needing to find them or to pay rent in order to earn an income on your investment. Nor do you have the responsibility of maintaining the property.  

In an instalment of series on how to manage your money, IOL reported on how investing in through listed property works. 

Listed property companies are listed on the Johannesburg Stock Exchange. They invest in a portfolio of properties and handle the administration while you collect the returns on the investment.  

A listed property investment will suit you if you want returns in income over the long term rather than a quick speculative return. And there are four different types of listed property investments namely Property unit trusts; property loan stock companies; listed property companies; and exchange traded funds (of which there’s one in South Africa, Proptrax).  

Some of the advantages of listed property  

  • The profits can be projected with a fair degree of accuracy, because they’re derived from rentals paid for properties in the company’s portfolio.
  • Also that listed property offers liquidity and tradability, which means you, can sell your listed property shares easily. Whereas it may take weeks or months to sell a physical property and you’d incur high transaction costs, such as an estate agent’s commission, when you sell a physical property.  
  • An investment in listed property gives you exposure to properties around the country and to various sectors of the property market, such as commercial, retail and industrial property.

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