Frequently Asked Questions
A property is categorised as residential through a process of ‘zoning’, which means that the property is not to be used for non-residential purposes – whether it is an undeveloped plot of land or an empty property.
In technical terms, the description ‘residential property’ is used for an owner-occupied space, and for tax purposes, a residential property can be defined as a rental property with a minimum of 80% income from dwelling units.
Direct investments describe the partial or full purchase of a property, whereas direct commercial property funds – also called bricks-and-mortar funds – are collective investment schemes that invest directly into a portfolio of commercial properties which would be out of reach for the individual investor.
Indirect property funds are collective investment schemes that focus on the shares of property companies listed on the stock market. Whilst they are a way of investing in commercial property, this type of investment does not offer the same diversification as more direct methods of investing, as property shares tend to follow trends in the stock market.