Property for pensions comes of age through REITs, says fund manager

But proposed new rules should allow property investment to become a particularly attractive long-term solution to the nation’s savings gap, suggest the fund manager. The chief benefit of REITs for those planning for retirement compared to, say, a buy-to-let flat, is they offer stable high income of about 5% to 7% annually with little exposure to risk associated with high levels of gearing or development of new property. In fact, the risk/reward structure is such that investors could look at REITs as an alternative to bonds, Turner says. Evidence from other countries so far suggests...