Investment property refers to any type of property that is purchased with the intention of generating income. This can include residential properties, commercial properties, and even infrastructure assets.
Investment properties can be securitised by pooling them together and issuing securities that represent ownership interests in the pool. This allows investors to gain exposure to the income-generating potential of investment properties without having to purchase the properties outright.
There are a number of applications of investment property securitisation, including:
- To provide liquidity for investment property markets: Securitisation can help to make investment property markets more liquid by making it easier for investors to buy and sell securities that represent ownership interests in investment properties.
- To reduce the cost of borrowing for property developers: Securitisation can help to reduce the cost of borrowing for property developers by allowing them to raise capital from a wider pool of investors.
- To provide diversification for investors: Securitisation can help to provide diversification for investors by allowing them to invest in a pool of investment properties rather than a single property.
Investment property securitisation can be a useful tool for both investors and originators. For investors, it can provide access to a wider range of investment opportunities and can help to reduce the risk of their investment. For originators, it can provide a way to raise capital and can help to reduce the cost of borrowing.
If you're looking to learn more about how you can start investing in the property market, visit Core Property, or attend the Property Funds Investment Forum to give yourself the information you need.