What are your options with commercial property?
As with residential property investment, you have several options:
This means buying the whole or a share of a property. This is generally not considered the best way for a private investor to buy into commercial property, as it leaves you shouldering all the risk.
Direct commercial property funds
Investing in a collective investment scheme (for example, a unit trust, investment trust or Open Ended Investment Company) is a more usual way to invest in commercial property. The investment goes directly into a commercial property portfolio that could include offices, warehouses and supermarkets. Small, private investors wouldn’t otherwise be able to invest in these types of commercial property.
Indirect property funds
These are collective investment schemes that go into shares of property companies listed on the stock market. This means the property shares can move with the stock markets so these aren’t as beneficial as direct investment.