Retirement planning in Melbourne is a costly venture, especially if it involves securing a property or two. Even aiming to own the most modest real estate is no small feat given its increasing prices and high demand. It is no wonder that average Australians seldom dream of owning a property for their retirement. Fortunately, with fractional investment, you may be able to turn this dream into a reality.
How Fractional Investment Works
Fractional investment offers an option to those looking to invest in real estate without a massive up-front outlay. Here’s how it works:
- A fractional investment platform purchases a property.
- The platform splits the property into several shares. The number of shares varies depending on the property’s value, size, and other factors.
- You purchase a share (or several) of the property.
- You earn income from your share(s) by renting it out or selling it.
Since you’re only purchasing a fraction of the property, you don’t need to pay the huge initial costs expected in conventional investment ventures.
Why You Should Consider Fractional Property Investments
Opportunities for fractional investment in Melbourne and other cities are on the rise. Here are the top three reasons you should grab one of them for your retirement plans:
- Fractional property is a liquid investment. In fractional property investments, the investor’s finances are not hinged on the property for a specific amount of time. However, investment in property is general a longer term and we always recommend minimum of 5 years. The investor can place their shares on the platform for resale whenever they want. If the value of the property increased, they would also be entitled to a return proportionate to the higher cost.
- There are fewer entry barriers. Since the cost of the property is split into shares, investors can get a foot on the property ladder at a smaller expense.
- Get the opportunity to diversify your portfolio. Fractional property investment is a great way to establish yourself in the industry. It would allow you to own and profit from shares across a wide range of properties—a feat that’s downright impossible if you were to invest the traditional way.
Is Fractional Investment Worth It?
The prospect of becoming a property investor without spending millions is an attractive proposition. But, is the cost worth it? Investment property consultants in Melbourne say that it is.
Fractional investment only has two potential drawbacks:
The first one is that its eventual returns are not as significant as those from a traditional real estate investment, which is a given. You’re only profiting from a portion of the property after all.
- The second hitch is that you can’t claim your fractional property as a tangible asset. Unlike with traditional property investment, you cannot become the owner or occupier of a fractional property.
Given these points, the advantages of fractional investment definitely outweigh its drawbacks.
Not only does fractional investment make the property market more accessible to the average Australian, but it also opens various opportunities for the investor in the industry. The investor can gain exposure, build connections, and establish their name in the industry without spending as much as what’s traditionally expected. You just need to invest with the right fractional investment platform.
Invest in a Property for Less with Our ResiBrix Programme
A fractional investment programme by Safe Super Homes, ResiBrix allows you to invest in property for as little as $50,000. Although it is possible to invest with lower amounts, we recommend this amount which will in turn reduce the number of Investors for each property. You will share an investment in property. A 4-bedroom quality family home built by our HIA builders.
Trust us to:
- Find a tenant for the property
- Manage the property’s upkeep and maintenance
- Work closely with you on all aspects of your venture
- Calculate and deposit your rental income into your nominated account
As with all investments, ResiBrix cannot guarantee growth returns. However, it can guarantee rental income. Click here to get a more in-depth take of the programme.
Make fractional investment a hassle-free experience with ResiBrix. Contact Safe Super Homes today at (03) 9702 2595 for expert retirement planning in Melbourne and other financial management solutions.