Why Property Managed Funds Are a Smart Choice in 2025

Introduction

Investing in real estate has always been a cornerstone of wealth creation, but not everyone has the time or expertise to manage properties directly. That’s where property managed funds shine. As we move into 2025, these professionally managed real estate investments are becoming an increasingly popular choice for both seasoned and new investors.

But what exactly are property managed funds, and why should you consider them next year? In this guide, we’ll break down the benefits, risks, and top-performing sectors for 2025—helping you decide if this investment strategy aligns with your financial goals.

For expert insights into high-performing property funds, explore Real Estate Science Fund’s portfolio today.

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What Are Property Managed Funds?

Property managed funds pool money from multiple investors to buy, manage, and sell real estate assets. These funds are managed by professional teams who handle everything—from property selection to tenant management—giving you passive exposure to the real estate market.

Types of Property Managed Funds

1. REITs (Real Estate Investment Trusts) – Listed on stock exchanges (e.g., Goodman Group).
2. Unlisted Property Funds – Privately managed (higher returns, less liquidity).
3. Syndicates – Smaller groups investing in specific properties.

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5 Reasons Property Managed Funds Are Smart in 2025

1. Diversification Without the Hassle

• Instead of buying one property, you invest in a portfolio (office, retail, industrial).
• Reduces risk if one asset underperforms.

2. Professional Management

• No dealing with tenants, repairs, or vacancies.
• Fund managers optimise returns through active strategies.

3. Access to Premium Real Estate

• Individual investors can’t always afford CBD offices or large warehouses.
• Funds give exposure to high-growth commercial assets.

4. Strong Performance in Inflationary Times

• Real estate historically outperforms inflation.
• Rental income adjusts with CPI-linked leases.

5. Liquidity (For Listed REITs)

• Unlike direct property, REITs can be sold quickly on the ASX.

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Top Property Managed Fund Sectors for 2025

Sector	Why Invest?	Example Fund
Industrial	E-commerce boom = warehouse demand	Goodman Group (ASX:GMG)
Healthcare	Ageing population = medical real estate	Dexus Healthcare Property Fund
Build-to-Rent	Rental crisis = high occupancy	Mirvac’s BTR Portfolio
Data Centres	AI & cloud computing growth	Goodman’s Tech Portfolio

For exclusive unlisted fund opportunities, check out Real Estate Science Fund.

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How to Choose the Best Property Managed Fund

1. Check the Track Record

• Look for 5+ years of stable returns.
• Compare performance to benchmarks like the S&P/ASX 200 A-REIT Index.

2. Understand the Fee Structure

• Typical fees: 0.5-2% management fee + performance fees.
• Avoid funds with excessive hidden costs.

3. Assess the Asset Quality

• Are properties in high-demand locations?
• What’s the vacancy rate?

4. Liquidity Options

• Listed REITs = daily liquidity.
• Unlisted funds = often 3-7 year lock-in periods.

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Risks to Consider

⚠ Interest Rate Sensitivity – Rising rates can lower REIT valuations.
⚠ Economic Downturns – Office/retail funds suffer in recessions.
⚠ Liquidity Risk – Unlisted funds can’t be exited quickly.

Mitigation Strategy: Diversify across industrial, healthcare, and residential funds.

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Property Managed Funds vs. Direct Investment

Factor	Managed Funds	Direct Property
Management	Hands-off	High involvement
Diversification	Instant across sectors/locations	Limited (1-2 assets)
Liquidity	High (REITs) / Low (unlisted)	Very low (6-12 months to sell)
Control	None (fund manager decides)	Full control

Best for 2025? Funds suit passive investors, while direct property works for hands-on landlords.

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Tax Benefits of Property Managed Funds

• Distributions often include tax-deferred income.
• Franking credits on some REIT dividends.
• No land tax (unlike direct ownership in some states).

Always consult a tax advisor—rules vary by fund structure.

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How to Get Started in 2025

1. Define Goals – Growth (REITs) vs. stable income (unlisted funds).
2. Research Funds – Use Morningstar REIT Reports.
3. Start Small – Many REITs trade for under $20/share.
4. Reinvest Distributions – Compounding boosts long-term returns.

For curated opportunities, explore Real Estate Science Fund’s offerings.

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FAQs

Q: Are property managed funds safe?
A: Generally lower risk than stocks but still market-dependent.

Q: What’s the minimum investment?
A: REITs = $500+, unlisted funds often $50K+.

Q: Can I lose money?
A: Yes—property values and rents can fall.

Q: Best fund for retirees?
A: Healthcare REITs (stable income).

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Conclusion

As we enter 2025, property managed funds offer a smart, low-effort way to tap into real estate’s wealth-building power—without the headaches of direct ownership. Whether you prefer liquid REITs or higher-yield unlisted funds, aligning with the right strategy is key.

Ready to explore top-tier property funds? Visit Real Estate Science Fund for expert-curated opportunities.