Fractional property investment is good because it is regulated and one of the first companies pioneering the capability to trade shares (fractions) of a property is publicly listed on the Australian Stock Exchange (ASX).
Here are the important pieces of information you should know and research if you want to be certain that the concept of fractional investing is for you.
The Australian Government Regulation
The Australian Taxation office recognises that many Australians want to use their superannuation to invest in property and has passed a ruling regarding self managed super funds ability to invest funds into fractional property ownership.
Read about the ATO Fractional Property Investment ruling for SMSF’s
Managed Investment Schemes
If you are about to give someone YOUR money to contribute along with others in an investment it’s best to understand where that money goes. Fractional Property investing involves the creation of a sub-fund within a Managed Investment Scheme.
There is a legal definition of a managed investment scheme and you can read about it at the Australian Securities and Investments Commission (ASIC) website.
The ATO also refers to Managed Investment Schemes (MIS) at their website.
Fractional Investment Platform
The Australian Stock Exchange (and more recently trading platforms like Chi X) enable individuals and companies to buy and sell shares in businesses. By being listed businesses themselves they need to maintain strict compliance regarding their businesses and the platform for fractional property investment is DomaCom.
DomaCom is a publicly listed company and this platform enables developers, builders, agents and investors to share in the costs of property investment and the rewards in property price increases and rental income.
See the excellent presentation about the Fractional Property Investment Platform