Investing in share of real estate: advantages, profit and where to look for objects?
Today, equity investment in real estate is one of the most popular forms of investment. It is accessible to a wider range of people, as it allows you to invest smaller amounts of money compared to a standard real estate purchase. Find out what it means to invest in a share of an apartment, why you should invest in a share of real estate, and what kind of profit you can make
Have you heard anything about investing in real estate? This is a modern investment method that is actively gaining momentum. Given that real estate investments bring considerable income, this method of earning is of interest to many investors, and the new payment method makes the market accessible to a wide range of investors.
What is the advantage of investing in real estate shares and what profit can be made? We have collected all the information in this article.
What is real estate investment?
1. At the construction stage of the object, the investor contributes an amount equal to the value of a certain share of the apartment and becomes its full owner.
2. After the completion of construction, the management company provides apartments for rent.
3. As a result of management, the investor receives an income proportional to his contribution.
4. Holders of particles are independent of each other. You will be able to transfer your rights without agreement with other investors of the apartment.
Thus, a share is an independent object of investment, which each investor disposes of independently. You can make a contribution both at the stage of construction and after its completion.
Why should you invest in real estate shares?
1. A more accessible way of investing
This method of investing in real estate allows you to spend less money than when buying a home on your own. This technique is especially useful and relevant for young investors who may not have enough money to purchase their own real estate. After all, one of the main disadvantages of investing in real estate is the high cost of assets.
Also, in this way, you can buy more expensive real estate, which will bring more profit in the future.
2. Diversification of the investment portfolio
The investor gets the opportunity to purchase shares in several objects, instead of investing all the funds in one real estate object. Diversification will allow you to distribute risks and provide stable income from various sources.
3. Management by a professional management company
Many developers who work on the principle of partial investment offer their investors cooperation with management companies that take over all issues of renting, servicing and maintaining apartments. This will help to avoid risks related to maintenance and maintenance of real estate.
How to buy a share of real estate and what profit can be made?
This method of investment is offered by few construction companies.
Let's consider the method of making a purchase and the projected profit on the example of the apartment hotel ANTA Residence Canggu on the island of Bali, Indonesia.
The cost of apartments with an area of 51.33 m² is $195,800. The share worth $10,000 will be 5% of the unit.
Payment takes place in three stages:
- 1 payment (contract conclusion) – 50% – $5,000
- 2nd payment (after 3 months) – 25% – $2,500
- 3rd payment (after 3 months) – 25% – $2,500
After the completion of construction, a contract is concluded on the sublease of the land, proportional to the area of the apartments. The lease term is 51 years (26 years + warranty extension for another 25 years).
The management company provides apartments for rent and manages them, providing financial reporting to the investor, including through a convenient application.
Anton Taranenko is the founder and CEO of Visit Ukraine and Visit World online platforms and the owner of the international development company AntaGroup:
“Investments in apartment shares are managed by professional management companies that take care of all issues of rental, maintenance and property maintenance. It is this management company that will manage the ANTA Residence Canggu apartment hotel on the island of Bali - the international hotel operator Ribas Hotel Group, which will provide comprehensive management of your apartments or your share in them”.
A limited number of apartments are available for share purchase. One is already completely sold out. Entry threshold from $10,000.
- Predicted profit
In Bali, the highest profitability in the world - from 12%. While the average rate in most countries is 5%. There are also zero operational risks here.
- The investor's net income from renting out a share of apartments per year is from $1,231 to $1,482. The payback period is 6-9 years.
- Annual growth in the value of real estate during the construction of the facility - 20% ($2,000). Net profit from sales after construction is 43.5% ($4,350).
All your questions regarding the ANTA Residence Canggu project and your investments can be sent to a special closed chat with investors and representatives of Anta Group Development: https://t.me/+pbTZp_l1ECcyNzA6.
"Investing in real estate shares is becoming increasingly popular. You can buy a share in an apartment, house, commercial space or even an apartment hotel room. It allows you to invest smaller amounts of money, but still get a return on your investment. This investment method also allows you to diversify your portfolio. The world of investments is modern and dynamic, so discover new ways to invest and get more profit," emphasizes Anton Taranenko, owner of AntaGroup.
Daria Rogova, Head of Insurance at Visit World
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More articles on the topic:
Tourist real estate: prospects and opportunities for investors.
How investing in share of the premises?
What is the secret of smart investments: a guide for beginners.
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