Fractional property investment is certainly growing in popularity, with investors warming to the idea of purchasing ‘bricks’ in a property the way you would purchase shares in a company.
But it’s difficult to see what will be the long term pay off for your investment.
In our view, low-risk residential property investment is a long game due to the high entry and exit costs. This principle also applies to fractional investing.
David Johnston shared his views on fractional investing for Domain’s ‘Fractional Property Investment – Is It Worth Getting A Fraction Of Your Foot In The Property Door?’
So are you in it for the long haul, how do you determine the value of your bricks in 10-20 years’ time, and will the company you invest via still exist and most do not last that long?
Our partner in Property Education for over a decade and the Chairman of Property Investment Professionals of Australia, Peter ‘the Property Professor’ Koulizos, shares his concerns with this form of property investing.