Role of Property Trusts in achieving capital growth

Property trusts are investments where money is invested in property. Investors buy ‘units’ in an Investment Property, which is run by a professional investment manager. A Property Trust offers all the benefits plus greater peace of mind if you own a property and wish to best protect its value for future generations. You can use different types of property trusts to achieve a variety of specific estate-planning objectives. You can use some trusts for a single estate-planning objective, while others help you achieve more than one goal. After you place property into a trust, that property is formally known as a trust property. By investing money (or capital) in the property trust, it is possible to get a regular income, usually half year, which is called distributions. You may also get a ‘capital gain’ on your original investment. If the price of the assets in the property trust has increased when they are sold, you get a capital gain. If they have decreased, you get a capital loss. Capital growth is the increase in value of your property portfolio over time and should be considered alongside the property's yield. While there is no guarantee your property will gain in value over any given period, and capital growth largely depends on where and what you buy, historically real estate experiences steady growth over the long term. Although rental yield and tax benefits are significant financial advantages of Property Trust, capital growth is generally the most significant financial reward. Different types of property will experience different levels of capital growth and it is not uncommon for investors who buy 'off the plan' to experience an almost immediate increase in capital growth between paying their deposit and completion of the property. It is a perfect time to invest in property trusts, enjoy high benefits now and experience strong Capital Growth in the future.