2009 Due Diligence Forum

Australian residential property - investing on solid ground


Getting Real - Property


Ironstone Funds

Research Paper

Residential property is the largest asset class in Australia, it has delivered historically attractive returns, and has very promising fundamentals going forward. In Australia, residential property is an inefficient market, with assets predominantly traded by amateurs who may only ever transact a few times. Over a 20-year period, residential property has produced above average total returns as compared with other asset classes, and with lower volatility than Australian shares. This research paper examines the evidence backing these assertions and demonstrates the benefits of taking a professional approach to residential property investments, as well as the benefits available for investors of including residential property in a diversified portfolio .


Jason Isherwood, Director, Ironstone Funds