Real estate investing is often perceived as a solo trip, which can prevent budding investors from knowing the perfect way to enter the market. There seems to be so much personal risk, time and effort spent on what might not generate returns, or even financial hardship.
However, as the industry evolves, this should no longer be the case – and any potential disadvantage can be minimized through low-risk platforms, in which an investor is not required to put all one's eggs in one basket.
By supporting a diversified portfolio focused on long-term capital growth through a crowdfunding platform, investors can create and create wealth in a slow but secure way to generate returns, even if that does not lead not necessarily at a huge profit.
Avestix Equity is the first Australian company to capitalize on the crowdfunding trend so investors can invest in real estate through share ownership. With a minimum investment of only $ 500, potential investors can buy shares in a $ 5 million portfolio of debt-free properties; in the second year, they will also be able to share the dividends generated by the net operating income of the portfolio.
"The company will initially own 15 debt-free townhomes, and our goal is to turn Avestix Equity into a major homeowner company over the next 7 to 10 years," said Susan Lindeque, Founder and Chief Executive Officer. d & # 39; Avestix.
The business models themselves are inspired by German companies such as Vonovia SE and Deutsche Wohnen SE, which build large portfolios of residential properties with a long-term goal, responding to the growing popularity of renting rather than the purchase of a home.
Portfolios diversify over time in terms of location, which limits the risks to investors, who also do not have to individually assume the usual responsibilities of homeowners for research and development. tenant management, as well as maintenance and conservation costs. ]
In addition, since Avestix Equity is designated as the owner of a real estate company, investors are considered real shareholders – placing them under the protection of corporate law and giving them a direct claim against assets.
The first portfolio should be owned by Dakabin Crossing, located in the growing Moreton Bay area, about half an hour north of Brisbane.
"Unlike other possibilities for crowdfunding, where everything is speculative and the investment is not really supported from the first day, this portfolio is backed by real estate assets and a value of several millions of dollars – and investors have the opportunity to take advantage of it. an affordable entry point, "says Income2Wealth Director Paul Wilson.
"We are initially looking at a term of about seven years, and there will be exit strategies throughout this period if investors need to take out their money." Avestix Equity's long-term vision is to grow the company to a $ 50 million real estate portfolio.
Less experienced investors can buy $ 500 to $ 10,000, while savvy investors are not subject to an upper limit, according to legislation.
Top suburbs:
Alderley
,
spearhead
,
willliamstown
,
Gladesville
,
Redcliffe
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