The real estate industry has been commonly considered an asset class with high entry barriers, often plagued by a lack of transparency among operators. This issue has remained persistent for several years causing a lot of frustration for investors and making them avoid committing to real estate investment.
In spite of the various challenges in real estate investment, there is no doubt that it still remains an attractive asset class for investors as the average real estate investor’s salary sits between $70,000 and $120,000 according to most sources. To curb the barriers facing the real estate industry, there have been many startups like ours at Maihomm that have cropped up and worked tirelessly on improving every vertical of the Real Estate value chain.
Maihomm has made sure that Real Estate investments are frictionless and take far less time than they used to along with similar real estate startups across the globe. With the help of technological solutions and data, we have been able to streamline the entire process of investing in a real estate property which otherwise would have been a painful and time-consuming process. With this, many investors have been enabled to have passive ownership of high-value real estate properties at just a fraction of their cost.
Fractional investment in real estate provides investors access to high-value high-return opportunities by letting the investors invest a small amount of money and yet own a part of prized real estate properties without having to physically manage it. The advantage of this is that investors can diversify their portfolio and invest in many different real estate assets with smaller amounts of money, as opposed to investing a huge chunk of money into one single real estate asset. Fractional investment in real estate is a great form of investment and might be the best investment option for you depending on your financial goals.
Asides from the points mentioned above, here are some other reasons why fractional investment in real estate will be good for you:
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Affordability
In Fractional Investment, there are a wide variety of affordable options to explore; many investors often turn to Fractional Investments as the right approach for assets that are less liquid, difficult to manage, or unaffordable for investors. Rather than come up with a significant down payment yourself, the cost is split among a few investors. Platforms like ours at Maihomm have made real estate investments highly accessible and affordable for all.
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Transparency
The advent of new-age platforms has helped in making the process of investing in Real Estate very transparent. An investment platform like ours provides users with the ability to make data-backed decisions when they make their investments. With tools like an ROI calculator, investors can ascertain what the return on investment on their property will be based on the amount committed.
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Accessibility
You no longer have to rely on physical visits or good word of mouth to make your real estate investment decisions; with Fractional Real Estate Investments, these worries are thrown straight out of the window. Fractional Real estate investment platforms walk you through the entire process, this includes a virtual tour (inspection) of the property you wish to invest in, as well as walking you through the process from start to finish. Moreover, you don’t need to lock your capital in large lengths of time. These days, investing in Real Estate has almost become a no-brainer, and accessibility is the least of your worries.
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Passive Income
Fractional Real Estate Investment platforms provide management services, they specialize in running the property of investors. Maihomm is an excellent example of a fractional real estate investment platform that provides maintenance services for investors, ensuring the property is occupied; the property could serve as a vacation home and many other rental purposes. Rental income is remitted to investors as and when due. Investors no longer have to be bothered about the day-to-day running of their properties. In addition to this, investors earn long-term value appreciation starting with at least 4% on the properties they co-own.
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Diversification
Putting all your eggs in one basket is never a good idea. With real estate investments, you buy one property and put all your money into it. If the property value falls, you could lose all your invested money. Using the Fractional ownership model, your investment capital is spread across multiple properties, thereby diversifying your investment portfolio.
Is Fractional Investing Right for You?
If you’re looking for a way to break into real estate investing, you should consider Fractional Real Estate Investing. It’s a sure way to earn passive income and not have to worry about the hassle of property management. Instead, you fund your investment and sit back and watch the money roll in between the appreciation and monthly cash flow. If investing in fractionally owned property sounds right for you, take a look at our website to learn more and get started!
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