To provide some more information.
I'm looking at from a long term buy and hold point of view Passive type investment, not wanting to commit large gobs of time and effort to managing the flock
- Wanting something that will have some growth over time.
i'm sure most people pre GFC where thinking the samething.
Check out General Property Trust, one of the most widely held REITS amongst retail investors. The unit price went from something like $5 to $0.6 (did hit a low point of around $0.2). (they have subsequently done an adjustment to their units on issue reducing the number of shares on issue and increasing each individual unit price (something like zimbabwei with its currency)
Now this doesnt even include share dilution from all the capital raisings. One share held before the GFC was a lot less (something like only 25%) after capital raisings.
So the moral of the story is there is no buy and hold. YOU DO NOT CONTROL THE COMPANY, YOU DO NOT HAVE SIGNIFICANT OWNERSHIP WHERE YOU CAN INFLUENCE THE BOARD.
Therefore you have BUY AND HOMEWORK, just like owning any other share (or unit in a REIT). Buy and homework means you regularly check what your company is doing. When it comes to annual report/half year report, you go through all the details including the notes to the accounts.
If you are not prepared to do this you become potential CANNON FODDER.
Disclosure:
I made very good money investing in this stock during the GFC and taking advantage of all the capital raisings, but im out of the position now.
I've done some cyber surfing and some forum reading and i've come across
- Exchange Traded Funds (ETFs)
this is not a bad way to get exposure to the sector as a whole if you feel it will create outperformance against other sectors.
I would be looking at contributing additional funds to something as they become available and looking at this from a long term perspective (10+ years) as im only 23yrs old.
mmm long term perspective, i think some of those who had REITS pre GFC will be waiting around 20 years, before they see a return of their capital, never mind a return on their capital.
Sorry for the really newb questions, but i sappose if i don't ask i won't learn =)
this is good, you only learn by questioning and questioning and questioning.
Let me ask you another question,
you have an exposure to residential property right? i presume this is managed by a property manager right?
If so do you read the monthly property statements send out by the property manager?
ie every month you get a report of income in, expenses out.
Do you read this, or do you just say, nah i'm in it for the 'long term'.
Next question:
do you look at your financing position with the bank?
do you look at your LVR ratio?
or do you just say, nah i'm in it for the 'long term'.
Direct property ownership and indirect property ownership through reits is no different. YOU WANT TO KNOW WHATS HAPPENING.