What is fractional investing? Fractional investing is simply buying a bit of an asset with other like-minded investors instead of buying a whole asset. It’s a bit like sharing a pizza. Another term for fractional investing is syndication. For example, the cost of a house may be hundreds of thousands of dollars or more. A commercial property like a factory, an office, a solar farm, or an agricultural property could be millions of dollars and well beyond most people’s ability to purchase outright. Fractional investing gives people the choice to buy what they want and invest as much as they want so they can participate in the market.
Because the minimum amount to invest is low, some people can spread their money across several properties and enjoy the benefits of diversification. Diversification helps you to minimise risk by giving you exposure to different types of property at different geographic locations to take advantage of local economic conditions and demand. Fractional investing also enables you to choose investments that deliver the desired outcome. You may want income, or you may prefer capital growth to minimise income tax. To learn more, go to domacom.com.au.
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