Investing in Properties without Much Capital Needed

LOmar2616 on 26/10/2024 - 16:16

Hi I have been looking into some business opportunity out there.

I wonder if anyone would be interested in investing in property markets here if we can communally fund one?

Property investment have always been a tool for the rich, where they have the capital to sweep multiple properties.

But things can change if we have a platform where people can invest into shares of property as little as $100AUD per property.

A similar model has been utilised in the UK market.
https://www.yielders.co.uk/process/how-it-works

I wonder if anyone will be interested in investing into the property market here without much capital needed. Comes with a risk of course, but do you think people will be generally interested?

Or we can even fund property renovations to house more families, i.e. subletting or share housing type for young families? What do you think?

Financial

Comments

  • AustriaBargain on 26/10/2024 - 16:18
    +10

    This ends civilisation, don't do it.

  • holdenmg on 26/10/2024 - 16:24
    +24

    This is already being done by http://brickx.com.au, https://bricklet.com.au and others…

    See: https://www.finder.com.au/home-loans/fractional-property-inv…

  • SBOB on 26/10/2024 - 16:27
    +35

    Want a share in a pooled real estate investment.
    Buy an REIT ETF.

    Eg iShares REET would have returned you a rather crazy return this FY (less crazy earlier FY's)

    What is it with the influx of 1 posters asking (uneducated) financial questions?

    • sumyungguy on 26/10/2024 - 17:48
      +5

      Maybe because there are considerably less comments to evaluate here compared with the literal stream of consciousness that emanates on r/AusFinance

      • SBOB on 26/10/2024 - 18:00

        There's plenty of useful info on that subreddit, just have to filter out the clearly clueless responses :)

        • justworld on 26/10/2024 - 19:42
          +7

          It's a complete cesspool filled with poor 25 year olds wondering why their mediocre skillset isn't netting them six figures and a house deposit.

          • SBOB on 26/10/2024 - 19:47

            @justworld: well I have found useful items there and fiaaustralia for super and investment info (as i said, filtering out the clueless)
            Got any tips on other useful forum sources for regular people finances?

            • justworld on 27/10/2024 - 12:04

              @SBOB: Mrmoneymustache forums are pretty good if you are interested in FIRE.

          • Ghost47 on 27/10/2024 - 14:30
            -8

            @justworld: Yet here you are on the complete opposite side of the spectrum justworld, all you spout is the "F you, got mine" attitude, insulting people who've been made redundant, attacking locals and calling them useless indolents, acting like simply because you achieved what you have it means there was no luck involved whatsoever. Everything you spout is why this country (and other developed Western countries) is going down the crapper.

            Our society sucks these days and has been degrading for several years because no one is interested in listening to other people's concerns and that happens for both sides. High house prices are the root cause of so many issues in our society today, yet here you are acting like it's no big deal because like most people you're actually clueless about the concept of cause and effect, you're just happy to participate in the fake clown world where everyone is obsessed with property. Honestly I wouldn't be surprised if you're just another transplant yourself who only cares about extracting wealth out of this country (which is pretty much the only reason immigrants come here these days) rather than the prosperity of it because if you were born here you'd give much more of a damn about it than what you're portraying. We don't live in an age of sensibility anymore and people like yourself are part of the silliness of everything, you're no better than the people on the complete other side of the spectrum with blue hair who are giving puberty blocking drugs to little kids because you are utterly unable to approach anything with a balanced perspective because of your own experience, just like our politicians who are happy to splash $4.3m on a house in the whitest part of NSW.

            Good riddance to humans, there are more shitty ones out there than good ones, we've already passed 1.5c degrees of warming so the world is going to be very different mid-century with mass die offs of the global population.

            • justworld on 27/10/2024 - 20:08
              -1

              @Ghost47: "yet here you are acting like it's no big deal because like most people you're actually clueless about the concept of cause and effect, you're just happy to participate in the fake clown world where everyone is obsessed with property."

              What makes this world 'fake'? Nothing about property is fake. Unless you really think it's a Ponzi scheme. How long can you hold your breath?

              "Honestly I wouldn't be surprised if you're just another transplant yourself"

              Yes - I'm a migrant, and I had to learn English for myself. Most of the indolents you go into bat for never had that disadvantage, yet they're still not able to compete.

              • Ghost47 on 31/10/2024 - 20:22
                -2

                @justworld:

                What makes this world 'fake'? Nothing about property is fake. Unless you really think it's a Ponzi scheme. How long can you hold your breath?

                Imagine not thinking it's a ponzi scheme lmao. Why do you think immigration is so high? I can hold my breath longer than you that's for sure.

                Yes - I'm a migrant, and I had to learn English for myself. Most of the indolents you go into bat for never had that disadvantage, yet they're still not able to compete.

                I knew it, thanks for proving my point about immigrants only wanting to extract wealth out of this country. You come here, the country obviously afforded you opportunities to make your life better and all you do in return is badmouth the locals constantly lol. Simply disgusting and entirely weird behaviour. I just do not understand your arrogant and obnoxious and unkind behaviour. You fkn moved here, you supposedly did well for yourself, locals probably spend their money on your services and you constantly insult them in return? If you were such top sh*t you never would've had to leave your own country in the first place would you?

                Like seriously, if you did well for yourself then good for you, pat yourself on the back. But your constant insulting of locals is disgustingly rude behaviour and simply unnecessary. It makes no sense to be as hateful as you are when you have supposedly done well for yourself, as you have constantly jerked yourself off in these forums. If only immigration agents were able to block people from entering this country based on their morals and values. That way the productive immigrants would be able to lift others up instead of constantly punching down on locals unlike yourself.

                • justworld on 31/10/2024 - 21:04
                  +1

                  @Ghost47: A Ponzi scheme has no real underpinnings. If we have to literally restrict people from coming in in order to stop property being expensive, it's the exact opposite of a Ponzi scheme.

                  It's all about being able to buy multiple properties so you can get rental income and retire early.

                  The country gave me the same opportunities every local has. You keep forgetting that point. In fact, considering that I had to learn the language, all locals had a big advantage over me.

                  " If you were such top sh*t you never would've had to leave your own country in the first place would you?"

                  What a strange thing to say. We didn't want to live in a third world country.

                  • Ghost47 on 31/10/2024 - 21:36

                    @justworld:

                    A Ponzi scheme has no real underpinnings. If we have to literally restrict people from coming in in order to stop property being expensive, it's the exact opposite of a Ponzi scheme.

                    From this page:

                    A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money. Instead, they use it to pay those who invested earlier and may keep some for themselves.

                    With little or no legitimate earnings, Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors, or when large numbers of existing investors cash out, these schemes tend to collapse.

                    Why do you think immigration is so high? You do realise that there are a lot of immigrants that come here from developed countries, right? Plenty of people sell up in their native developed country and come here with hundreds of thousands of dollars to buy housing.

                    Roughly 82,000 high-net-worth individuals moved to Australia between 2002 and 2022, with another 5,200 arriving this year, the data showed. The country was also in the top spot between 2015 and 2019. “Australia consistently attracts sizable numbers of millionaires every year, mainly from Asia and Africa, but more recently also from high-income countries such as the U.K.,” according to Andrew Amoils, head of research at New World Wealth, which teamed up with Henley & Partners for the report.

                    Just because you came from a third world country doesn't mean that everyone who moves here comes from third world countries. And that doesn't mean everyone who comes here is a millionaire either. The fact is, rich people do migrate to Australia even if they aren't the majority and more people = more demand for housing = prices go up, it is literally that simple, not including all the policies passed by politicians (most of whom also own property) that further push house prices higher and higher. It is obviously a ponzi scheme.

                    It's all about being able to buy multiple properties so you can get rental income and retire early.

                    There are other ways to earn passive income, not that rental income is really passive anyway when you need to deal with tenants or a property manager. One can invest their money into starting their own business or they can invest in the stockmarket. The fact is this country has an obsession with property and basically everyone sees it as an easy path to wealth because of the way the system has morphed into a cancer on society.

                    The country gave me the same opportunities every local has. You keep forgetting that point. In fact, considering that I had to learn the language, all locals had a big advantage over me.

                    Luck actually has a big role to play in how far one gets in this country. If things were so easily obtainable as you constantly make them out to be we would all be millionaires (not that that reality would be sensible at all). People from lower socioeconomic backgrounds often have to swim upstream to get anywhere in this country whereas if you're born into a rich well-connected family then that makes it much easier for one to succeed. We are no different to many other countries in that respect.

                    What a strange thing to say. We didn't want to live in a third world country.

                    Third world countries have hierarchies just like developed countries. There are less well off people and rich people in both types of countries. What I was saying was that if you were so skilled and awesome then there's no reason you couldn't have become rich in your own country. If you were so awesome and skilled, you would've made a great life for you in your own country, and if it was a third world country you'd be able to hire 10 maids and own a 10 bedroom mansion because you'd be raking in the dough.

                    Either way, all that is really beside the actual point. You left your country which you imply is worse than Australia because it's "third world" yet you incessantly attack and badmouth locals on these forums. Why? If anything you should actually be thanking locals and grateful for their laziness because since they're hardly competitive that's actually a good thing for you isn't it? Why can't you be happy with how you've supposedly done well for yourself without having the need to attack locals all the time? It's disgustingly rude, absolutely pointless and it helps no one. You've extracted your wealth, be happy and stop attacking locals for god's sake.

                    • justworld on 31/10/2024 - 23:03

                      @Ghost47: "People from lower socioeconomic backgrounds often have to swim upstream to get anywhere in this country "

                      I know that. I'm exhibit A. My parents migrated here with no wealth and my great-grandparents were literally peasants.

                      "What I was saying was that if you were so skilled and awesome then there's no reason you couldn't have become rich in your own country."

                      Possibly. But the ceiling in Australia is higher.

                      " and if it was a third world country you'd be able to hire 10 maids and own a 10 bedroom mansion because you'd be raking in the dough."

                      And now I can do that in Australia, not that I want maids, or a McMansion.

                      "If anything you should actually be thanking locals and grateful for their laziness because since they're hardly competitive that's actually a good thing for you isn't it?"

                      You actually have a point here, but what grinds my gears is that people in this thread will never acknowledge that they've been outdone by a hard worker; there's always an excuse. It's always because someone else had an inheritance, or got lucky, or had a rich daddy, or went to a private school. And I find that incredibly disingenuous.

            • ratman on 28/10/2024 - 08:56

              @Ghost47: Can't wait for the mass die off. World is over populated for sure. Dunno about the rest of your rant though.

      • payton on 26/10/2024 - 18:19
        +1

        compare vs the amount of idiots parroting the same lines & memes in r/wallstreetbets/

  • JIMB0 on 26/10/2024 - 16:39
    +4

    The problem with this structure for residential is you miss out on negative gearing and the ability to borrow a large percentage of the property value. You'll also miss out on the opportunity to add value yourself and any repairs/renovation will need to be contacted out. This would make it a rather mediocre investment.

  • AndyC1 on 26/10/2024 - 16:43

    How does the tax implication worth w.r.t. CG?
    What did the accountant say when you asked about setting up the company to run this?

  • Gunnar on 26/10/2024 - 17:26
    +3

    This sounds like an idea you would see on A Current Affair

  • randomusername2017 on 26/10/2024 - 17:47
    +12

    You forgot to post the link to your own scam scheme 👍

  • Ozbar Gain on 26/10/2024 - 18:12
    +5

    You ve described a REIT

  • 87percent on 26/10/2024 - 19:24
    +1

    An easier method would be we all put in $5 a week and play lotto, and then we split the winnings

  • djones145 on 26/10/2024 - 19:59
    +14

    First, let me assure you that this is not one of those shady pyramid schemes you've been hearing about. No sir. Our model is the trapezoid that guarantees each investor an 800% return within hours of your initial…

    • AndyC1 on 26/10/2024 - 20:15
      +2

      How much does the nigerian syndicate take? 900%

    • Slinky0111 on 26/10/2024 - 21:40

      I think the buzz word these days is pipeline

      • Maglia Nera on 27/10/2024 - 13:47

        let's drill down on that ..

  • sumyungguy on 26/10/2024 - 20:17
    +1

    You're wondering if anyone wants to invest in a Ponzi scheme? At least yielders.co.uk features this disclaimer: Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.

  • 7ekn00 on 26/10/2024 - 20:21
    +5

    It's called property ETFs and are actually monitored by ASIC for any scamming, unlike any unregulated "communal" random thing you propose :/

  • ihbh on 26/10/2024 - 20:48
    +2

    Investing in Properties without much capital needed

    Poorly worded title sounds like get rich quick scheme. I think you mean fractional investing.

    Also, I think you refer to residential real estate, not office, retail, industrial, etc. because there are ETFs for them.

    1. The returns from residential real estate nowadays vs 20 years ago are very low and needs to be supplemented with negative gearing.

    2. Add in the cost of management, compliance, admin, reporting, etc., for each "unit holder" and the net returns will be terrible. Not to mention the lack of scale of each piddly purchase (for the manager, not unit holder).

    3. There might be a bit of savings from having an a dedicated team of tradies to do the maintenance, but why wouldn't the manager capture the savings compared to individual.

    4. Add the manager's profit margin and it will be just negative returns for the unit holders.

    The example you give in the UK is probably below the ASIC equivalent radar, especially when they mean be prepared to lose your whole investment => that is, for the gullible, noob, etc.

    • p1 ama on 26/10/2024 - 21:54
      +2

      Add in the cost of management, compliance, admin, reporting, etc., for each "unit holder" and the net returns will be terrible. Not to mention the lack of scale of each piddly purchase (for the manager, not unit holder).

      This - the reason why so many people build wealth through property is because of leverage, no capital gains tax on PPOR, and being able to live in their investment (i.e. saving rent), and the friction in buying and selling forces people to avoid the urge to sell and buy at bad times.

      Residential property is not a good investment based on fundamentals. The returns are incredibly difficult to scale, and individual property investors often put in significant amounts of personal time and effort to maintain their investments. If this wasn't the case, we would already see REITs buying up residential property - the closest we have are what I would call "semi-residential" REITs (e.g. GPT, Stockland, Mirvac…etc.) - all of them have done extremely poorly - GPT down 23% over 5 years, Stockland only up 8% over 5 years, and Mirvac down 30% over 5 years. This is compared to the ASX200 up 22% over the same period.

      If you're from Melbourne or Sydney, consider yourself lucky (even Brisbane to some extent). Have a look at Perth as an example of what can also happen.

  • AndyC1 on 27/10/2024 - 08:32
    +3

    OP has gone AWAL. Smells like a scam now.

    • Jake D on 27/10/2024 - 11:09
      +1

      oh no, I already sent him $100.

  • Chewy2221 on 27/10/2024 - 11:59
    +1

    ETFs or shares in listed property trusts will give you property exposure. I would not invest in unlisted property trusts as I believe that they are inherently unstable - they are likely to freeze withdrawals if things get tough . Good luck

  • Andrew0415 on 27/10/2024 - 12:23
    +4

    (profanity) THIS. We need to decommodify property in this country. Affordable shelter is an essential not a luxury. No wonder our birth rates are in the toilet when this sort of greedy mindset is encouraged.

    • SlickMick on 27/10/2024 - 19:50
      +3

      Regardless of who owns a property, it is still available for shelter. Any action that makes building houses attractive to developers results in more shelter being provided.

      • smartazz104 on 28/10/2024 - 07:45
        +1

        Doesn't seem to be working so far…

        • gromit on 28/10/2024 - 08:22
          -2

          That's because Land release, anti investor sentiment, Government Red Tape and costs have all hammered the sector, meanwhile imigration has continued unabated.

        • SlickMick on 28/10/2024 - 09:36
          -1

          What's not working? I didn't recommend anything. I'm just saying your decommodifying approach would not have the effect you're hoping for.

  • Windows98 on 28/10/2024 - 07:55

    Most investment funds even allow for doing this

  • gromit on 28/10/2024 - 08:12

    been done many times. invest in shares or ETF's that have property as their focus. this is not something new. That said this is generally not a good means to wealth, far better returns in other sectors as the reasons property works so well for individuals is Leverage, no CGT on PPOR and the benefits of negative gearing, All of which you lose in these schemes.

  • Typical16-bitEnjoyer on 28/10/2024 - 08:13
    +5

    Hi, is this scam still available?

  • LFO on 28/10/2024 - 12:51

    Property investment have always been a tool for the rich

    Not really.
    Most (Australian) property investment are purchased with a mortgage loan.

    The rich invest in big items, not suburban housing. Industrial blocks, commercial sites, warehouses, not houses.

    I recall Clive Palmer saying he made it big as soon as he got into mining, acquiring, profiting and selling mines.

  • drfuzzy on 28/10/2024 - 16:06

    I wonder if anyone will be interested in investing into the property market here without much capital needed.

    Yes, I'm happy to invest in property using your capital.

    PM me for my account details.

Login or Join to leave a comment
Login Join