Fractional Property Investing What Are The Benefits?

Fractional property investment has rapidly gained popularity and for good reasons.

As we are seeing housing prices in Australia closing in on the $1 million mark, and as borrowing capacities shrink, Australians wanting to invest in property are looking for alternative opportunities and fractional ownership is their investment of choice. Fractional real estate, as you probably know, is when several individuals collectively own and share the costs of the property. Unlike full ownership, each investor owns a part or fraction of the property, allowing them to invest in premium real estate at a fraction of the total cost. Investment entry can start from as little as 10% right up to full ownership if you so wish.

Fractional ownership embodies the perfect blend of lifestyle and investment benefits, empowering investors to participate in the property market with reduced financial burdens and increased convenience
 

Fractional Property Investment: Why more Australians are Embracing It

To provide insights into why our clients are embracing fractional property investment, here are a few key elements we want you to know about.

Accessibility: Fractional ownership extends the reach of premium real estate to a wider investor base. By pooling resources with other likeminded investors, our clients can partake in ownership of luxury properties that were previously out of reach empowering individuals and families who felt excluded from such opportunities. Fractional ownerships starts from 10% up to 75% with full legal ownership to you in your name.

Flexibility: Clients value the flexibility inherent in fractional ownership by tailoring how much they wish their investment size to be dependant on their financial goals and where the source of incomes comes from. Fractional ownership is available to everyone starting investments as little as AUD$41,000 which is an exciting opportunity we are proud to be a part of at Trade My Way.

Passive Income: A compelling allure of fractional property investment lies in its potential for generating a passive income. Investing in a highly sought after area in a fully managed turnkey property that boasts three times the yield of Australian properties with a 75% occupancy rate provides not only a reliable stream of income paid every 3 months, but also the security it brings when investing in this case, with one of Asia Pacific’s largest Property Investment Companies.

Simplified Ownership: Quality fractional investments must provide a simplified hands off approach eliminating the hassle of maintenance, management and dealing with tenants. Everything is covered in a set and forget scenario giving you peace of mind your investment is handled by a team of professionals. As soon as the property is operational your investment is entirely managed by experts, allowing you to reap the benefits without the hassle.

Prime Properties in Desirable Locations: Fractional ownership grants access to high-quality properties in sought-after locations where luxury properties can be accessible through investing, but also be rest assured they will enjoy the benefits of returns through high occupancy from tourists, but also to enjoy a few free days in their investment property themselves!

Diversification Made Easy: Investors can effortlessly diversify their real estate holdings by acquiring fractions of various properties across different geographies. This is the beauty of aligning with such a large well established property developer who has access to countless properties across the globe.

Reduced Risk Profile: Sharing investment risks with fellow investors mitigates individual exposure, enhancing overall investment security.

Enhanced Investment Leverage: Fractional ownership amplifies investment potential, enabling investors to access upscale properties with smaller capital outlays.

Personal Enjoyment: Enjoying your investment at no cost with no block out dates within the property is another drawcard for investors. Even fractional owners can relish in personal use of their investment in a fractional equivalent, which is particularly appealing being in popular high end tourist destinations.

Professional Management: All properties, fractional or full ownership enjoy the hands off approach through expert management, upkeep and rental of the property, ensuring optimal performance and investor peace of mind.

Unit Refurbishment Fund: this fund is an agreed percentage taken from the gross rental revenue. This is to enable a complete refurbishment every 5-6 years. This keeps every apartment in top condition to ensure the rental returns are as high as possible.

Sinking Fund: this is a provisional fund that is also taken from the gross rental revenue at an agreed percentage, and is an essential pool of money used to cover the costs of future maintenance expenses of the building and the common areas. Sometimes these funds are joined together as one pool or they are sometimes allocated separately. This arrangement is subject to the management of each project.

Structured Exit Strategies: Exiting fractional investments is typically straightforward, offering clarity and predictability to investors which include strategies such as selling your share to the management company, another investor or on the open market. Once you have signed your Contract the property is legally yours to sell as you wish.

Potential Tax Advantages: Fractional ownership may offer tax benefits, enhancing overall investment returns via a Tax Depreciation Schedule to maximise tax benefits.

How long is the lease? The lease is 26 years with an optional extension of 30 years which is at market price at the time.

Payment options: All premium partner projects allow 4 payment options including Cash, Finance Solutions such as equity release, Self Managed Super Funds and most recently, through a leading cryptocurrency exchange. All options are discussed with you by qualified Mortgage Brokers and Financial Advisors to ensure you are getting the best package possible with the highest return.

So as you can see there are unlimited reasons why fractional investing across the froth is increasingly becoming an option for Australians.

For your no obligation Discovery Call please reach out to Berni at [email protected].