Scotsman Guide Magazine

Fractional ownership changes the real estate investment equation

As investors seek lower entry points, crowdfunding platforms are redefining equity, occupancy and income in property finance

By Kirill Bensonoff

Traditionally, real estate investing was largely restricted to buyers with the upfront capital to assume full ownership of the property. In a paradigm shift, fractional ownership models are changing that dynamic, offering exposure to real estate returns without a large downpayment or tying up capital in a single asset.
Some companies are now allowing investors to purchase fractional shares of rental properties, sometimes for relatively small amounts. In return, the company receives a percentage of rental income, along with a portion of the property’s appreciation over time. 
What has driven this shift? Scale and accessibility — especially through online platforms.
Affordability and financing are still two of the biggest stumbling blocks fac...

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