Property Derivatives

[meldge]

Hi everyone

This is my first post on this excellent forum.

I am interested in buying and holding property derivatives for the leveraged income that I assume can be generated and the lack of costs (no mortgage or legal fees stamp duty etc) compared to real property and the lack of volatility when compared to equities and FX.

There are the CME contacts for the US and more specialist contracts for big institutions. I have about £10K to play with as a deposit for a contract and am interested in getting the best yield with the lowest chance of falls - Germany or certain US cities now for example.

I am based in the UK and would not consider the UK at the moment. There are also specific indexes eg IPD for commercial inly property which has much better yields typically than residential.

Would appreciate any experience members have or good resources for study out there. The main US and UK contracts aren't yielding much at the moment and liquidity/accessability is an issue I think for small investors like me on specific countries/cities.

I phoned Tullet Prebon the other day for advice and they told they can't help now as it's all quietened down volume wise and I should just use Google instead!


Thanks

Alastair

 

[Martinghoul]

TBH, I think you're, unfortunately, SOL. Apart from doing something dinky with a random broker that will allow you some exposure to smth like the Case-Shiller indices in the US (not sure who would actually offer that), there's really nothing out there. The property derivatives mkt in the UK is more or less defunct at the moment (both commercial and residential), as far as I know, and it was one of the very few ones out there in the first place. There certainly isn't anything in Germany and not much in the US. Unless, of course, you actually invest in stuff like covered bonds/MBS etc.

 

[ortonstarus]

Property derivatives is a financial derivatives its value depend on underlying property. This is depends on market value and also its value allocated for its market price. Its manage of property price and value of your money.