The Many Benefits of Fractional Real Estate Investing, with Khushboo Jha

Welcome to The MapleMoney Show, the podcast that helps Canadians improve their personal finances to create lasting financial freedom. I’m your host, Tom Drake, the founder of MapleMoney, where I’ve been writing about all things related to personal finance since 2009.

Have you avoided investing in real estate because it seems too costly and complicated? My guest this week explains how you can own real estate in Canada’s biggest cities for as little as $2500.

Khushboo Jha is the CEO of BuyProperly Limited, a platform for fractional investing in real estate that makes it possible for regular folks to be real estate owners through fractional ownership of properties. In this episode, Khushboo explains exactly how fractional real estate investing works, and who should consider adding it to their portfolio.

One of the things that impresses me the most about fractional real estate is how few layers there are to it. I was surprised to learn that investors can often get an in-person tour of the property they’re investing in prior to purchase. This is very different than investing in something like a REIT ETF, which is a far more complex investment that often layers funds on top of funds, on top of funds.

Khushboo’s company is Buy Properly. They allow you to buy fractional shares of rental properties in Canada’s largest markets for as little as $2500. Not only will you receive a proportional share of the net rent on a quarterly basis, but you’ll also participate in the gains when the house is sold.

If real estate investing is something that interests you, fractional real estate is certainly something you should explore further. For more information, check out this week’s episode of The MapleMoney Show.

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Episode Summary

  • What exactly is fractional real estate?
  • How to diversify using fractional real estate
  • How fractional investing improves liquidity
  • What are the downsides to fractional real estate?
  • Fractional real estate vs. REITs
  • Many investors are intimidated by real estate

Pick any large city, and real estate is really out of reach for everyone; millennials, Gen Z, young professionals, they just can’t make it happen…in Toronto a 1-bedroom is $500K, and so if you’re talking about a downpayment, you’re talking about more than $100K for a 1 bedroom condo. – Khushboo Jha

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Originally posted at https://maplemoney.com/podcast/fractional-real-estate-investing/

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