How to invest off-farm the smart way

Rural Exchange 16/09/2018

Rural landowners are sitting on a considerable investment with their farms, but are reminded not to put all your eggs in one basket.

It can be tempting to invest profits back into the farm, but looking for options outside of the paddocks can also provide some great results.

Daniel Lem from Property Managers Group (PMG) says there are several options including shares and other property.

"The share market has pretty good liquidity. The big niggle for me with the share market is the value of your shares can go up and down dependant on forces out of your control," Mr Lem told RadioLIVE’s Rural Exchange.

“Investing in commercial or residential property directly is another option people consider. However, they can often find that the upkeep, maintenance and management of the property can be quite time consuming, and requires considerable knowledge,” he says.

"Another alternative investors may look at is investing in an unlisted commercial property fund," Mr Lem said.

With an unlisted property fund, investors don't need to worry about property management, their risk is spread across multiple buildings and tenants, and PMG funds offer either monthly or quarterly cash distributions.

PMG offer both retail and wholesale funds.

"A retail fund, anybody can invest in it - mums and dads. A wholesale fund, you've actually got to convince your lawyer that you understand a bit more about risk."

To find out more about PMG funds contact Matt McHardy (AFA), Head of Investor Relations at PMG on (07) 578 3494 or matt@propertymgr.co.nz Or you can speak to your trusted financial advisor, accountant and or legal professional.

*Disclaimer: Daniel is not an authorised financial advisor and cannot provide personalised financial advice. If you would like such advice speak to your financial advisor, accountant or legal professional.

Watch the full interview with Daniel Lem above.

Rural Exchange with Hamish McKay, Sarah Perriam and Richard Loe, 5-7am Saturday and Sunday on RadioLIVE with Carter’s Tyre Service. Click here for all the ways to watch and listen.

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