Invest in high quality property with Fractional Property Investing*
*The information contained on this page is general information only, and is not intended to be legal, investment, taxation or financial advice.
AS SEEN ON
How Fractional Property
Investing work
Invest through:
Self Managed Super Fund
Personal Name
Trusts
Company
Problems with Traditional Property Investment:
- High Barriers to Entry: Large down payments, stamp duty, and ongoing land taxes make it difficult, especially for younger investors.
- Rising Interest Rates: Current interest rates may make traditional property investment less attractive.
Fractional Property Investing as an Alternative:
- Lower Entry Cost: Allows investment with a smaller initial outlay compared to buying a whole property.
- Access to Investment-Grade Properties: Opens doors to properties that might be otherwise unaffordable.
- Potentially Stable Returns: Offers the potential for lower volatility and consistent returns similar to traditional property investment.
- Access to Development Opportunities (Kelkap Specific): Provides a chance for higher returns through developer’s uplift in property developments.
- Democratisation of Investment: Makes property investment more accessible to a wider range of people, not just the wealthy.
Overall, fractional property investing is an attractive option for those who want to participate in the Australian property market despite the current challenges.
OUR EXPERIENCE
Heading into 2024, The Kelkap team has advised over
development
assisted
for total projects
Steps before investing
Arrange a time to talk with the Kelkap team about the available fractional property Investment. Discuss the investment opportunities (all properties are pre-vetted before being presented to clients).
Receive a copy of the investor pack. This will contain the product disclosure statement and all relevant adjoining informating.
Organise a follow up session with a Kelkap Adviser. Here you can ask any further questions you may have about the investment opportunity.
Become a Kelkap client and begin the onboarding process. Clients may open an account through their personal name, company, trusts or self managed super fund (SMSF)
Once funds are tranferred into your fractional property investment account. You can instruct your Kelkap adviser to allocate those funds into your chosen investment.
Confirm you have read the product disclosure statement (PDS) and meet the TMD requirements.
Fractional property investors receive returns on their investment based upon the property's performance ie. the net rental income and potential appreciation will be based onto investors based upon their initial investment amount.
Receive monthly statements and EOFY statements through the fractional property investment platform or your Kelkap Adviser.
How Are Fractional Shares Purchased?
How it works:
Kelkap identifies residential or commercial properties, or property developments, that offer strong capital growth, high yields or a combination of the two. Properties are marketed to our clients, who can secure an allocation through their Kelkap adviser. Once sufficient funds have been raised, the offer is closed, and the property is purchased, which is owned by a unit trust that splits into 10,000 units.
Units are priced by dividing the property's value by 10,000. For example, if an individual property bought for $1 million, each unit would be worth $100. If an investor were to purchase 1000 units, they would own 10% of the unit trust that owns the property.
Can I sell?
Investors can sell their bricks at any time by listing them on the platform. Sale times typically range from 20 to 70 hours.
Property Selection
The platform identifies suitable investment properties, which could include residential, commercial, or other types of real estate. The properties are often pre-vetted for their investment potential.
Returns and Costs
Investors receive returns on their investment based on the property's performance, such as rental income and potential appreciation. However, they also share the costs and responsibilities, such as property management fees and maintenance costs.
Fractional Ownership
Investors can purchase a percentage (or fraction) of the property based on their investment amount. For example, if a property is worth $1 million and an investor contributes $100,000, they would own a 10% stake in that property.
Exit Strategy
Investors may have the option to sell their fractional ownership stake. This provides liquidity and flexibility for investors who want to exit their investment.
Speak with one of our Kelkap advisers to find out
what projects are available to invest in now.
Get In Touch To Learn More
Understanding the risks
As per any investment, there are risks with investing.
Ensure you have spoken to your financial adviser before investing. Risks associated with this investment include, but are not limited to;
- Covid - 19
- Value changes
- No guarantee
- Past performance
- Risk in build cost
- Liquidity risk
- Damage or loss
- SDA scheme registration
Next Steps
Confirm you are happy to go ahead with investing. After reading the Product Disclosure Statement (PDS). Available upon request.
Decide which entity you want to invest through.
SMSF
Personal Name
Company
Trust
‘Execute with conviction’
Kelkap Pty Ltd ABN 69 672 848 985 is a corporate authorised representative (CAR) No. 001307532 of Lemessurier Securities PTY LTD ABN 43 111 931 849, AFSL 296877. Kelkap does not provide personal advice, any information provided is general only and may not be appropriate for you. None of your objectives, financial situation or needs have been taken into account. We strongly recommend you speak to financial adviser before acting upon any investment. You should also obtain a copy of the product disclosure statement (PDS) before making any decision about whether to acquire any products. To read information about our services, including fees, complaints, or general information you can access our up-to-date Financial Services Guide (FSG) here, or you can request a copy from any Kelkap representative. See a copy of our privacy statement here.