Welcome to the future of real estate. Although still relatively new, property derivatives are beginning to trade. For a long period, those who invested in real estate had to listen how investors in equities and commodities could hedge their investments against losses. Now, as the property derivative market matures - property investors will have access those, and a host of other new and powerful strategies.
Currently, the real estate derivatives available are forwards and futures. We have put together some basic information on each type of property derivative. Additionally we have information on some basic investment strategies with property derivatives to include hedging and synthetics. Although seemingly daunting, the actual analytical work is no more than doing a physical real estate deal - but a lot less driving around.
Our current guides are as follows: