Real estate is the largest asset class in the world. More than 90% of billionaires have built their wealth through real estate. However, investing in real estate is difficult due to the significant capital requirements, paperwork, maintenance, and more.
Real estate fractional ownership platforms like PRYPCO Blocks solve these issues. They allow investors to own a block or a fraction of a property and reap the benefits of real estate investment without the burdens of sole ownership.
Let us explore the kind of returns one can expect from fractional ownership in real estate.
Rental Income
Investors who own a fraction of a property get a share in the rental income it generates. This can provide a steady passive income.
The rental return of a property is determined by dividing the annual rental revenue by the purchase price of the property. If the property is acquired for AED 2 million and yields a rental income of AED 150,000, the resulting rental return would amount to 7.5%.
With PRYPCO Blocks, you will receive your share of rental income in your PRYPCO Blocks wallet every month.
Capital Appreciation
The increase in the worth of a property over time as measured by the difference between its current value and its initial acquisition price is called capital appreciation.
Fractional ownership provides exposure to properties that have the potential to increase in value over time. If the property appreciates, the fractional owner benefits proportionately.
So, if a property purchased for AED 2 million is sold for AED 2.6 million, the difference of AED 600,000 represents a 30% capital appreciation over an AED 2 million investment.
Your share of capital appreciation will be deposited into your PRYPCO Blocks wallet once the property is sold.
How can PRYPCO Blocks help you?
PRYPCO Blocks is a real estate crowdfunding platform that makes real estate investments in Dubai accessible for all.
By investing as little as AED 2,000 (approx. USD 540), you will have the advantage of earning rental income and capital appreciation benefits. You can expect a net annual ROI of 8-12%.
Conclusion
Fractional ownership in real estate provides investors with an opportunity to participate in the real estate market without the need for significant capital or sole ownership responsibilities.
The returns from fractional ownership come in the form of rental income and appreciation in property value.
By understanding the potential returns and carefully selecting properties, investors can make informed decisions and maximise their investment returns.
