Property Derivative
Categories: Derivatives
You want to invest in real estate. But you really don't want to go out and buy actual real estate. It's a lot of a hassle. You have to talk to realtors. There's tons of paperwork. Open houses make you nervous. If you hear the words "open floor plan" one more time, you might start swinging a sledge hammer at load-bearing walls.
But there's an alternative: property derivatives. These investment vehicles represent financial products based on the value of some underlying property, or some underlying real estate-related index. You don't buy the actual property. You just buy the derivative.
The investments can include things like futures and options, which you can trade on exchanges. These can be based on indexes as well, allowing you to bet on general trends in real estate.
