PRYPCO Blocks is a tech-driven platform where you can invest in the UAE’s real estate by purchasing ‘blocks’ or a fraction of a property.
PRYPCO Blocks aims to democratise real estate by enabling a collective of investors to invest in property starting with a minimum of AED 2000 (approx. USD 540).
In this blog, we will tell you all about the journey of investing with PRYPCO Blocks.
How can you start?
1. Create an account and complete the KYC
You can be a PRYPCO Blocks investor in just a few minutes. Just head to our website, create an account, and complete your profile (KYC).
You just need to add information and documents like a passport, ID, and proof of address like a bank statement, Ejari, or utility bill.
Remember to have these documents prepared when creating your account.
Follow this link to easily create your account and become a member of PRYPCO Blocks in under 5 minutes: https://prypco.com/blocks
2. Browsing and selection
As soon as you have created your account and completed your KYC, you will be spoiled for choice with our list of diverse properties you can choose from in various locations across the UAE.
3. Investing
After selecting the property that you would like to invest in, you can buy blocks in a property with a minimum of AED 2000 (approximately . USD 540). Once the total funding target is reached, we will create a Special Purpose Vehicle (SPV) to purchase the property.
You will then become the owner of that SPV and receive shares of the SPV equivalent to the percentage of the property you purchased.
How do you earn on your investment?
While we maintain and list your property on your behalf, you can sit back and receive monthly rental income while also benefiting from the capital gains of the property.
The rental income is generated by the property receiving monthly rent and will be transferred to your PRYPCO Blocks wallet. These funds can be withdrawn or reinvested at any time.
Capital gains result from the appreciation of the property over time, increasing the value of your fractional share. It is important to remember that you can only realise capital gains if your property is sold at a profit.
Example
Let’s say you browsed through our selection and invested AED 10,000 in a 3-bedroom apartment in Dubai Marina valued at AED 1,000,000. The value of your block or share is 1%.
Now, say the expected rental income of the apartment is AED 60,000 per year. This means that every month, the apartment brings in a rental income of AED 5,000 per month. Your share is 1%, and therefore AED 50 will be distributed into your account every month. This mirrors real property investment, just on a weighted basis.
The value of your share can also increase as the value of the property increases; let’s say the property is expected to appreciate 5% every year. If we take your initial investment of AED 10,000 and multiply it by the appreciation rate of 5%, it translates to AED 500 per year.
In summary, you are expected to make AED 600 (AED 50 x 12) in yearly rental income and AED 500 (10,000 x 5%) in capital gains, which totals AED 1100 in yearly income or a 9.09% ROI.
Withdraw, keep or grow your investment
To withdraw or continue investing with your newly added funds is a personal choice, depending on your financial objectives.
You can only withdraw your funds during exit windows, which open 12 months after purchase and every six months thereafter.
You may reinvest your earnings in a new property of your choice or purchase more blocks of the same property to increase your share amount (assuming another investor is selling their portion during an exit window).
Or you can either hold onto your investment and gradually get higher returns on your investment as the value of your property increases over time.
It is always essential to keep up to date with real estate market trends and the macroeconomic environment to help you make informed decisions when investing and deciding where to invest.
PRYPCO Blocks empowers you to enter the realm of property ownership seamlessly through fractional real estate investment, beginning at a modest AED 2000.
Start investing in Dubai’s prime rental properties with PRYPCO Blocks from just AED 2,000!
Become an investor in Dubai and earn monthly rental income with our DFSA regulated real estate crowdfunding platform.
