Real estate has evolved over the years as the most profitable business for those who can invest heavily in land or properties and wait for their increase in value. However, the property can get immediate cash in exceptional times such as sudden increase in value due to market reasons, such as those experienced just before the global financial crisis or due to the unique location of the property. This is classified under the short-term real estate investment type. The classification is based on the relative time taken to consolidate the value. The long-term type of real estate investment therefore means that the owner has to wait longer for the property or land to consolidate in value. (Isaac, 1998). The short-term type of investment requires professional expertise, current knowledge and experience in the market. Long-term real estate investment is generally considered the most profitable as the investment period is longer and the returns are good. A different classification identifies real estate investment trusts, land investments, rental properties and vacation rental properties as the different types of real estate investments. This is a narrower and more specific classification than the previous one. The history of indirect investments in real estate can be traced back to the 1950s across the world. Since then, a diverse range of real estate investment vehicles has emerged. These vehicles are classified into debt and equity. Direct investment has a number of characteristics that form the basis of its attractiveness especially as a means of portfolio diversification. However it has some negative characteristics which include heterogeneity of ownership leading to uncertainty of its value, lumpy ownership, which means that only large financial companies in...... middle of paper ......(1995 ) Attitudes of major real estate investors towards real estate securitization, Journal of Property Finance, 6(2), 55-63.Rydin, Y, Rodney, W and Orr, C (1990) Journal of Property Finance, 1(2), 250 -258.Seiler, J. Michael (1999), “Diversification Issues in Real Estate Investment,” Journal of RealEstate Literature, Vol. No. 07Jackson, O. Thomas (2001) "The Effects of Environmental Contamination on Real Estate", Journal of Real Estate Literature, Vol. No. 09Benjamin, D. John (2003), "The Environment and Performance of the Real Estate Industry", Journal of RealEstate Literature, Vol. No. 11, pages 279 to 324. Malpezzi, Stephen, “The role of Speculation in Real Estate Cycles”, Journal of Real EstateLiterature, vol. No. 13World Urbanization Prospects: The 2007 Population Database Review. The United Nations. http://esa.un.org/unup/index.asp?panel=2. Retrieved 21 November 2009