WHY OUR CLIENTS LOVE FRACTIONAL PROPERTY INVESTMENT

Fractional property investment is rapidly gaining traction among our clients at APFG, especially as housing prices in Australia edge closer to the $1 million mark. With shrinking borrowing capacities, Australians looking to invest in property are increasingly turning to fractional ownership as their preferred investment option.

Fractional real estate allows multiple individuals to collectively own and share the costs of a property. This type of ownership enables investors to buy a share of premium real estate for a fraction of the total cost, making high-end properties more accessible.

Four Reasons Our APFG Clients Prefer Fractional Investment in Real Estate

We asked Matt Sully, CEO of APFG, to outline why our clients are choosing fractional ownership and the advantages they're experiencing:

1. Accessibility: Fractional ownership democratises property investment, enabling a broader range of investors to access luxury real estate. As Matt explains, "Fractional investment is a game-changer, especially for average Australians who feel priced out of the luxury market. It allows them to invest in high-end real estate at attainable price points, offering the same benefits as buying a full unit."

2. Flexibility: Fractional ownership provides flexibility in investment size, catering to both first-time investors and those looking to expand their portfolios. Matt notes, "This flexibility is key, allowing investors to manage their investment according to their financial situation and goals."

3. Passive Income: Fractional properties, typically high-quality assets in sought-after locations, offer robust rental yields. "Our clients are particularly pleased with the steady income stream their fractional investments generate, especially in the current economic climate," says Matt.

4. Simplicity: Fractional investment simplifies property ownership. The management and maintenance are handled by professionals, making it a hassle-free investment. "It's a set-and-forget investment," Matt remarks. "Once operational, the property is managed by hotel brands or property managers, enabling investors to effortlessly collect returns."

Additional Benefits of Fractional Real Estate Investment

Beyond the reasons mentioned above, fractional ownership also offers:

• Investing in Premium Properties at Prime Locations. Fractional ownership provides a gateway to invest in high-quality real estate located in sought-after areas. Matt Sully, CEO of APFG, shares, "Many of our clients thought owning a luxury villa in Bali was beyond their reach. They're ecstatic when they learn they can own a part of such properties and still reap the benefits of rental income and even enjoy complimentary stays."
• Diversification Made Easy. With fractional investment, diversifying a real estate portfolio becomes straightforward. Investors have the flexibility to own shares in various types of properties across multiple locations, enhancing the breadth and resilience of their investment portfolio.
• Reduced Risk Profile. Fractional ownership's shared investment model distributes the risk among multiple owners, making it a more secure investment choice. This collaborative approach to investment provides a buffer against market volatility.
• Greater Investment Leverage. Fractional ownership enables investors to maximise their investment dollars. As Sully points out, "With our portfolio of properties, we can show you how our investors are getting more bang for their buck, investing in some incredibly nice properties."
• Enjoyment of Personal Use. Fractional owners can personally use their investment property, an appealing feature in tourist hotspots like Bali and Thailand. "Our premier properties offer all investors, including fractional ones, the opportunity to enjoy free stays," says Sully.
• Professionally Managed Properties. Expert property management teams take care of all maintenance and rental aspects of the property, providing a stress-free investment experience. This professional oversight ensures the property is well-maintained and generates optimal rental income.
• Structured Exit Strategies. Exiting a fractional investment is often more orderly and predictable. This structure provides investors with clarity and a straightforward path should they choose to liquidate their investment.
• Tax Benefits. Fractional ownership can offer various tax advantages, just like regular property investment. APFG assists clients with Depreciation Schedules and provides access to qualified tax advisors and accountants, helping investors maximise their tax benefits related to their property investments.

"Harnessing home equity for income-generating investments in Bali is a savvy move, enhancing your investment portfolio," Matt Sully points out.

Interested in the benefits of fractional ownership? Get in touch with Matt Sully and his team at APFG. They can answer your questions and guide you through our extensive selection of properties available for fractional investment.