For the team here at Capital 360, property research is a big part of what we do. Without quality research we could not achieve the results we do for our clients.

Australian Residential Property – Investing on Solid Ground

Residential property is the largest asset class in Australia; it has delivered historically attractive returns, lower volatility than Australian shares and very promising fundamentals going forward. However, residential property is an inefficient market in Australia, with assets predominantly traded by amateurs who may only ever transact a few times.

This research paper examines the evidence backing these assertions and demonstrates the benefits of taking a professional approach to residential property investment. It also highlights the benefits available for investors who are considering including residential property in a diversified portfolio.

Why should residential property be considered for investors’ portfolios?

In June 2009 the economic forecaster BIS Shrapnel published a report in which it said that demand in residential property from investors and “upgraders” was growing and would more than make up for any slowdown if first home buyer activity started to slacken off later in 2009. BIS Shrapnel expects prices to continue to rise, but expects that price movement will be slow until unemployment peaks early in the 2010/11 financial year.

You can find the full extract here.

Portfolio construction – benefits of an allocation to residential property

There are three key areas that have been examined when assessing asset allocation benefits for investors by including residential property in a diversified portfolio. They are; the difference between owning your own home versus residential property exposure in a portfolio, the growth versus yield play, and the statistical data supporting the addition of residential property to a portfolio.

To read more about these key areas, visit Residential Property Fund website www.ironstonefunds.com.au

Getting access to residential property as an asset class – easier than you think

The arguments for the attractiveness of the fundamentals for residential property have been examined. As have the benefits of including residential property in a diversified portfolio. The historical evidence suggests that it is beneficial to investors to strongly consider this asset class.

But how do you convert an attractive asset class into a useful investment? This is something that the Ironstone Group specilises in.

A big decision – should you go for a Fund Manager or DIY?

Historically the Australian residential property sector has been devoid of retail investment products; however overseas, residential REITs have been around for many years and it is likely that in time Australia will follow this trend. There are numerous benefits and advantages that using professional fund managers can provide. The main advantages, as outlined in this text, demonstrate that professional management of this sector is likely to provide fund investors with benefits and results they could not generate for themselves.

To find out what professional fund managers in this sector can offer investors, click here.

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