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Real estate is very expensive to transact. Certainly one could not execute short term trading strategies like is common with securities markets.
by someguydave 8y ago
Real estate is very expensive to transact. Certainly one could not execute short term trading strategies like is common with securities markets.
- adrianN 8y agoDon't you usually start a derivative market if the transaction costs of the original market are too high?
- zwischenzug 8y agoDerivative of what, though? There's no index to track that people will agree on or can't be gamed.
- dagw 8y agoIn the US there's the Case-Schiller index which is the underlying for several classes of derivatives.
- savvidis 8y agoThis is true for retail. However if a fund structures it the right way i.e. one property one company, the transaction costs could be similar like a share purchase deal.