A property investment trust is a fund that invests in different real estate assets. It can provide you with exposure to the property market in a way that is more diversified – and potentially more cost-effective – than buying a single property.
What is a property investment trust?
When you invest in a property investment trust, you’re buying a share in a portfolio of real estate assets―it’s like investing in a managed fund. You don’t have control over the assets held in the trust but you also don’t have the upfront and ongoing costs that come with owning property directly. And you can convert your investment to cash at any time, however there may be costs or fees involved.
How can a property investment trust help me get into the property market?
The money you invest is used by professional investment managers to buy and manage property in different sectors within the property market. For example, you can invest in office buildings, retail centres and hotels in Australia and overseas.
Is a property investment trust right for me?
Investing in a property investment trust gives you a different way to get into the property market when compared to buying a single property.
Before deciding on any investment strategy you should speak to your financial adviser. If you don’t have and adviser, we can help you find one in your local area.
How can I invest in a property investment trust?
You can invest in a property investment trust in a number of ways. Some of the more common options include:
- as an individual investor by applying online to buy units in a property investment trust
- as a member of a large super fund by selecting a property-based investment option, or
- through your self-managed super fund by applying directly online and selecting “Self-Managed Super Fund” as your investor type
If a property-based investment option is offered by your super fund you may be able to invest in a property investment trust using before-tax dollars. And if you invest as an individual or have self-managed super you may be able to borrow money to invest and use the tax benefits of gearing.
When you invest in a property investment trust you’re often able to buy and sell units in the trust through the Australian Securities Exchange – but this may not always be the case.
For more information
Visit our AMP Capital website for more information about investing in property through managed funds
Important informationShow more
It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.
This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.