A fractional property investment allows properties to be broken into units (shares) and held in a trust. Individual investors can then purchase a number of units within the property (up to 50% of the total value). The investors will receive a percentage of rent, as well as share expenses with the other owners.
In the event the property is sold, the capital gains would be shared among the owners. At the time of the sale, investors may decide to take the profits, or reinvest them in another property.
A relatively new product, fractional property investments are regulated by ASIC. For more information about this type of investment, contact Future Assist today.