Invest
Aussie investors at risk of property double-ups
Investors who have domestic equity holdings are likely "doubling up" on their real estate exposure and should consider alternative diversification options, according to one global fund manager.
Aussie investors at risk of property double-ups
Investors who have domestic equity holdings are likely "doubling up" on their real estate exposure and should consider alternative diversification options, according to one global fund manager.
Quay Global Investors principal and portfolio manager Chris Bedingfield said it is quite difficult for Australian investors to get access to assets that are not perfectly correlated with domestic equities.
Given that most Australian stock market investors are already in the local property market via their mortgage, they are probably "doubling up" on their Australian real estate exposure, Mr Bedingfield said.
However, he added he was not trying to "talk anyone out of real estate", which he believes to be a "terrific asset class".
"[Real estate] is a great way to protect yourself from inflation and to preserve capital – if you buy it at the right price," Mr Bedingfield said.
"It may feel counter-intuitive, but if you actually had a piece of Australian real estate in a global real estate fund, you’ve probably got more diversification than if you’ve just got Australian equities.
"For example, for the fund and the global real estate unhedged index, the correlation to the Australian share market is almost zero. So it’s a real diversification play," he said.
Mr Bedingfield set up Quay Global Investors with Justin Blaess in 2013, running an unhedged global listed real estate fund out of Sydney.
Bennelong Funds Management picked up the boutique fund manager in May 2015, and launched a retail version of the fund earlier this year.
The Quay fund currently has around $5 million in funds under management, and Mr Bedingfield said he will be "very disappointed" if the fund is not sitting at $50 million by the end of 2016.
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more