Fractional property investment is a model that allows multiple investors to collectively own a share of a property, making real estate investment accessible to those who might not have the capital to invest in a whole property.
Fractional property investment involves dividing a property into smaller fractions, which are then sold to multiple investors. For example, if any property is divided into 1000 tokens, then a token will represent the 0.1% ownership of the property.
Why is fractional investment property growing nowadays ?
Fractional property investments are becoming increasingly popular as investors seek more accessible and diversified ways to enter the real estate market.
Several factors contribute to this growing trend:
Accessibility and Affordability: Historically, real estate investment required significant capital. Fractional property investment lowers this barrier, enabling investors to buy small shares and invest in high-value properties. This makes real estate more accessible, even to those with limited funds.
Enhanced Liquidity: Fractional property investments often come with the benefit of liquidity through secondary markets or exchanges. Investors can buy or sell their shares more easily compared to traditional real estate investments, which are usually illiquid and require longer holding periods.
Technological Advancements: Blockchain technology and tokenization have revolutionized fractional property investments. Digital tokens represent ownership shares, making transactions transparent, secure, and efficient. BlockZen facilitates fractional investments through user-friendly interfaces, allowing investors to browse online property shares, purchase, and manage them with ease.
Abia Tanzil
07 Aug,2024 - 11:00 AM
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