Property income distributions are taxed differently to dividends, and if you use an ISA you may have tax to reclaim.
commercial property
Is it a share? Is it a bond? No, it’s commercial property, an asset class which boasts a bit of the best (and worst) of both. Does it belong in your portfolio?
Some REITs are trading at wide discounts to their net asset value, presumably on fears that Brexit will smash London.
Certain players in the UK commercial property sector looks like they might be on sale. Are they cheap for a reason?
I think all these companies have some attractive qualities and good potential, but obviously also risks.
Commercial property is an attractive asset class to own, and I think now looks a good time to buy – not as cheap as in 2009, but unless you expect a European blow-up not as risky, either.
Price declines have been extreme, and in the medium-term the investment case for commercial property still stands.
I think the time has come to buy commercial property. And almost nobody agrees with me.
Property has bond-like qualities, in that it represents a solid asset that produces an income via rents.