Investing in property

To briefly recap:

• Property's low correlation to other asset classes means that overall portfolio risk is reduced.
• Property appreciates or declines at a lower overall rate than equities as a whole.
• Property performance tends to lead the overall index.
• Property shares are generally quoted at a discount to NAV.
• A rising labour force and GDP will have a positive effect on property shares.
• Property has an inverse relationship with interest rates.
• Property supply lags the rental cycle.
• Property NAVs have an inverse relationship to property yields.
• As market sentiment decreases, so property share prices decrease and the yield/spread over the risk-free rate increases.
• Cash flow is the best indicator of property company performance.