Launched: Raiz Property Portfolio
PLEASE NOTE: This blog contains outdated information regarding “Custom” portfolios. These portfolios were replaced by Plus portfolios on 01/08/2023, for more information please read the Plus blog post or the PDS.
This week Raiz has launched an innovative investment portfolio option: “Property” which includes a 30% weighting on residential property investment. This new investment option is aimed at helping Aussies who have previously felt locked out of residential property investment due to the steep initial costs associated with traditional property investment.
Near the end of last year, residential property was added as an investment option in the Custom Portfolio. To reach a wider range of investors, Raiz has created an investment portfolio that provides exposure to Australian residential property and ETFs.
The Raiz Property portfolio comprises ten houses located across Australia that are rented out to tenants, allowing investors exposure to rental income. Additionally, the properties will be revalued twice per year, providing investors with the opportunity to benefit from any potential capital gains. This diversified property investment strategy is unique to Raiz, offering investors the chance to invest in residential property with as little as $5 and no lock-in commitments.
For many Australians, investing in property has long been seen as a pathway to wealth creation. However, the high cost of entry has often made it unattainable for many, particularly young Australians. With the portfolio, investors can now invest in property with as little or as much as they like, making it an accessible and flexible option for those looking to diversify their investment portfolio.
The inclusion of residential property in a Raiz portfolio is significant, as it offers investors exposure to an asset class that has historically delivered strong long-term returns. Residential property investment has been a popular choice for investors due to its ability to generate rental income, while also potentially offering capital growth over time.
By offering a diversified investment strategy that includes residential property, Raiz is giving investors the opportunity to access the benefits of property investment without the high costs and complexities typically associated with direct property ownership. The ten houses in the Raiz Property Portfolio are spread across different locations in Australia, reducing the risk associated with investing in a single property/area. The revaluation of properties twice per year also ensures that the portfolio remains up-to-date with market changes.
Raiz is offering Australians a unique and accessible way to invest in residential property. With its diversified property investment strategy, flexible investment options, and managed approach, it provides investors with an alternative pathway to wealth creation. By including residential property as 30% of the investment portfolio, Raiz is tapping into an asset class that has a proven track record of delivering strong long-term returns.
To decide if investing in residential property is right for you, please read the PDS or speak with your financial advisor.
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The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.
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Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).
