Indirect property

Indirect property is a term used in property investment.

There are two fundamental means by which one can invest in property. The first and most obvious is through purchasing freehold or leasehold interests in property, this is broadly known as direct property investment.

The second and less well-known method to achieve property performance with one's money is through indirect investment. Indirect investment can be exemplified by the purchasing of shares in companies that specialise in property dealings, property index derivatives or the bonds of corporate property firms. This allows the interest owner to receive financial returns inline with those of the property market without requiring the large quantities of capital generally required to purchase direct property rights whilst also benefiting from high levels of liquidity in their property assets.