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Home / FAQs
| Question | - Do I own part of the property that I choose to Invest in? |
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Answer - Yes. When you buy a share in a property, you will own whatever percentage of the property you have agreed to buy. For example, if there is a property on the property stock market which is divided into ten shares and you buy one share, you will be a 10% owner of the property as you will own 10% of the shares. Each property on the property stock market clearly shows not only how many shares have been issued, but also what percentage of the total property they represent. For example a property divided into 200 shares, will show that 200 shares have been issued and that each share represents 0.5% ownership of the property.
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| Question | - How can I be sure that I own my part of the property? |
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Answer - Each property is owned by a New Zealand Registered Trust, or a local company which is owned by the Trust. Each property is held in a seperate property investment trust within the main Trust. For example, if you purchase 2% of the shares issued in a property investment trust ABC, you will effictively own 2% of the property ABC.
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- If the property is rented, do I receive my share of the rent?
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Answer - Yes, you will receive your proportion of the rent, this means that if you own 3% of a building which is rented out, you will receive 3% of the net rental income. Rental income is distributed to the shareholders of a property quarterly in arrears. Rental income earned by you will be credited to your client account. You can request payment from your client account at any time. For security reasons, money will only be sent to you, at the address which you have registered with ourselves or direct to your bank account.
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| Question | - Can I sell my shares whenever I want? |
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Answer - Yes, you can sell your shares at any time. All you need to do is notify us of your intention to sell your shares and send your share certificate to the trust company who will hold it on your behalf until the shares are sold. The sale price will be set at the market price as shown on screen,( though you do have the choice to ask for more or less than this price.) Once the trust company has your documentation your shares will be offered on the stock market. When a sale is finalised the trust company will cancel your share certificate and credit your client account with the net sale proceeds.
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| Question | - How do I know that I will get the shares I have paid for? |
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Answer - All money sent to purchase shares, is not sent to Ftsie. It is sent to Tiber Trustees Ltd, a registered Trust Company, who look after it on your behalf until the shares you have requested are issued in your name. Once the shares have been issued and sent to you the funds are transferred to Ftsie. In addition, monies on your internal account are also held on your behalf by the trustees.
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| Question | - How are the share prices valued? |
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Answer - The share are valued in direct proportion to the value of the property. For example, if a property is purchased for £10,000 and there are 10 shares, each share is valued at £1,000. As the property increases in value so do the shares. The value of a property changes continually over a year, these changes are reflected in the share price. Each property has a full valuation carried out every three years. During the period between valuations, our team of property valuers watch the market, and based on published government figures and re-sales of similar properties in the area re-value the property together with the share price based on the previous three month results.
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| Question | - What does Ftsie charge for this service? |
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Answer - All our fees are clearly shown in the "fees" section. Put simply, we charge a 2.5% fee on each share bought or sold. In addition, there is a 1% fee of the value of the property charged annually to allow us to manage the property on your behalf. Other fees, relate to lost share certificates, uncleared fund, bank transfer fees etc.
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