FRACTIONAL
PROPERTY INVESTMENT
Invest in property, at a fraction of the price
Fractional property investment, also known as fractional ownership, is when a property investor purchases a share, or fraction, of the property. In this way, multiple investors can collectively purchase and own a property.
Why choose
fractional ownership?
Fractional ownership allows more people to invest in the property, by sharing the costs of ownership, while also providing the benefits of property ownership such as capital appreciation, rental income, and personal use if applicable.
How does Fractional ownership in property work?
With fractional ownership, the company selling the asset or property divides the cost of the property into fractions, or shares that can be sold to investors.
Purchasers of these shares are then entitled to earn income from rent charged on the property, as well as potentially receiving a capital return when the property is sold or when they sell their shares.
View GPFG Opportunities for Fractional investment:
What are the benefits of fractional property investment?
Fractional property investment offers several benefits that traditional property investment cannot match.
Lower entry point
Investors are buying shares in a property, rather than having to save for a large deposit and take out a significant investment loan.
Flexibility
Investors have options for how much they want to invest, depending on what's available. With GPFG, our fractional investment opportunities are divided into 25%, 50% or 75% of the unit value.
ROI and capital appreciation
Just like traditional investments, fractional investors still receive income and capital growth of their property. Fractional investment has the same potential earning benefits of investing in a whole property, directly relative to the amount invested.
No hassle
Since you don't actually own the property, you are not responsible for the day-to-day maintenance or tenants. Depending on the contract, the property manager or company distributing the shares will handle these items independently, or require a small, one-time or yearly fee.
Portfolio diversification
With the lower price points, investors can diversify their funds across a wide portfolio of properties. Fractional investment is a simple and efficient way for investors to get exposure to a range of properties and mitigate risk through diversification.
The downsides of fractional investment is that the returns are smaller, but that is relative to the amount invested. The more you invest, the more you earn. Additionally, as a fractional investor, you likely lose all benefits of owning property, such as holiday stays or occupying if you need another place to live.