in question 4.3 of QB4 solution on page 4 a point mentioned is Indirect property would be more suitable investment if property exposure is desired . Can u give some examples or what is meant by this sentence ?
An example would be investing in a unit-trust or fund which invests in property rather than buying property directly.
The general advantages of indirect property investment are: you get the benefits of investing in property, eg diversification from equities, higher(?) return than bonds etc divisibility (investing indirectly allows you to invest/divest smaller amounts at a time, ie not a whole property at a time diversification among properties as the fund/ property company holds many more properties than you can manage yourself and you have a small exposure to each indirect property should be more marketable (eg could sell within agreed timefram which could be immediately up to a limit or say a month. With direct investment it would take a lot longer to find a buyer and then to actually process the transfer. other advantages of indirect investment, eg benefit of expert manager etc That should be enough to get you started.
