The Lemon Fool

I saw a piece in the IC a couple of weeks ago about a new REIT that will invest in housing association stock, targeting a 5% dividend and 8% TR. I got the notification today from AJ Bell that the prospectus is available.

I see it as a lower risk and less stressful way of investing in this end of the property market. I understand it's come about now due to changes in how housing associations get funding, making this attractive for them if they need to raise capital for new developments.

The deadline for applications is July 6th.

I wasn't sure whether this was the right place to post this, but HYP Practical isn't too keen to discuss IPOs so it was either here or Share Ideas. Anyone got any views?

I noticed this RSI and wondered if the future is quite so bright. Will not the high rise voids cause some problems?
I am particularly interested in this sort of property investment having put some monies into other offers; AEWL, BBOX, HSTN, LXIE REIT, RDI, The PRS REIT, SLI, SWEF
I have - over-years been keen on IT's but the overall result has not been very good
Look at ADIG, SLI, RDI, RMDL, Shires, BLND.
Not a collection for beauty parade. Hopefully they will contribute the income to sustain me
It is enough to convince me that timing the market is key.
My intention is to buy when the FTSE drops by 10%
And again by another 10%
Not sure how many time I can keep that up

gnawsome wrote:I noticed this RSI and wondered if the future is quite so bright. Will not the high rise voids cause some problems?
I am particularly interested in this sort of property investment having put some monies into other offers; AEWL, BBOX, HSTN, LXIE REIT, RDI, The PRS REIT, SLI, SWEF
I have - over-years been keen on IT's but the overall result has not been very good
Look at ADIG, SLI, RDI, RMDL, Shires, BLND.
Not a collection for beauty parade. Hopefully they will contribute the income to sustain me
It is enough to convince me that timing the market is key.
My intention is to buy when the FTSE drops by 10%
And again by another 10%
Not sure how many time I can keep that up

Of yours I hold BBOX, HSTN and BLND. I also hold GCP Student Living (DIGS) and Primary Healthcare Properties (PHP). Each have their niche, but none really overlap with ReSI. I have quite a broad portfolio that also includes some Real Estate Credit Instruments (RECI) IT. All my property holdings have done well for me over the last four years (much better than the Industrials like Carillion and Cobham that I also hold), but I add to each on a regular basis to smooth out market gyrations.

I think your comment on high rise voids is a possible issue, but in that regard the terrible events at Grenfell Tower have occurred prior to the listing, so would that not in effect place greater demands on the rest of the housing stock?