Oyo, Nigeria
admin@chrestovest.com; rest@chrestovest.com
+234(0)9126200191; +234(0)7088155877

  • Oyo, Nigeria
  • admin@chrestovest.com
  • +234(0)9126200191; +234(0)7088155877

Blog Details Title

BENEFITS OF FRACTIONAL REAL ESTATE INVESTING

Everyone (or rather most people) is aware of how Real Estate is a valuable addition to any investment portfolio. 

In this part of the world, the asset class is known for constant cash flow, excellent returns, and financial security… 

Why? 

People need places to live, work, worship, and have fun. Although many young Africans would like to have a few properties to their name, the truth is it would take a significant amount of time to raise the capital needed to fund their dreams. 

Capital alone isn’t the most significant barrier to Real Estate; being a landlord is extremely stressful and time-consuming… Don’t forget the elephant in the Nigerian room…Landlord scams and all whatnot.

Thankfully, there is an investment strategy that allows you to buy a share of a property and still benefit from Real Estate without the hassles mentioned above. This is Fractional Real Estate Investing; an investment strategy where Real Estate is just like buying pizza.

How do Fractional shares work in Real Estate?

Like we said above, Fractional real estate is just like buying pizza (in a group)… You know this situation in a hangout where everyone wants pizza but nobody has enough to buy one full box alone. 

Now instead of buying shawarma or any other treat, each member of the group can decide to chip in and get the big box of pizza.

In Fractional Real Estate, you’re buying a portion of a home or commercial property instead of the entire property. This way, you split not only the cost but the profits generated from the use, rent, or sale of the property.

This form of investing is very common in the stock market and other articles of luxury such as art pieces, sports cars, or private jets. It allows new investors and beginners to start small and diversify quickly.

Is Fractional Real Estate a good investment?

Fractional ownership is great if you don’t want to risk a huge amount of your savings, if you don’t have the funds to spare for the purchase and if you’re new to Real Estate and just want to experiment and observe the asset class. 

Here are some of the perks in the Fractional Real Estate department:

Affordable entry prices

Traditionally, you need a considerable down payment to enter the real estate market. In Fractional Real Estate, you can purchase a share of the property through a platform for only a small amount with lower transaction costs as well. 

Reasonable Returns

Fractional Real Estate assets have been known to provide as high as 25-50% ROI per annum to investors. This could be paid on a monthly, quarterly, or yearly basis.

Passive Income

Fractional Real Estate Investments provides a reliable source of monthly passive income either through rent or capital appreciation.

Easy Diversification 

Is stock or crypto your primary asset class? Do you want to protect your portfolio with stable assets? Fractional Real Estate Investment allows you to diversify your portfolio without a lot of capital. This gives you the opportunity of investing in various properties in different locations and markets around the world.

Access to properties of your dreams

Your income limits the type of properties you can acquire. Most people just settle for a family home or a family home and a vacation home. However, with Fractional Real Estate Investment, you can invest in premium properties in big cities without worrying about management.

And this is why REST is HERE

 

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