+61 (7) 3295 3266
Suite 8, L18, Waterfront Place 1 Eagle Street Brisbane QLD 4000 AU

Invest With Us FAQ

  • Choice investment properties are apportioned into affordable fractions.
  • Buy individual or multiple fractions, according to your personalized risk and return profile.
  • Monitor your fraction prices and portfolio, as and when you want!
  • Earn net rental income proportionate to the number of fractions or portfolio you own.
  • Capital returns will be reflected in the fraction pricing on regular property valuations.

Democratizing Property Investment

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Our goal is to build an ecosystem that allows almost everyone to access real estate investments. Gone will be the days when investment-grade properties are all but reserved only for wealthy individuals and institutional investors. Skyrocketing prices in major cities and the poor liquidity of properties will no longer be issues that prohibit investors, especially the middle-class, from participating in the real estate market.

We bring you investment grade properties in affordable, accessible and tradable fractions. We remove the need for significant capital outlays, effectively eliminating the single largest obstacle in property investment. Now everyone has access to affordable investment grade real estate opportunities!

What are Property Fractions?

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Fractional ownership divides a property into more affordable segments. Instead of having to fork out hefty amounts to buy an entire property, fractional units allow the purchase of a portion of a property while enabling you to enjoy the benefits of property investment.

Fractionalization also offers the flexibility to construct property investment portfolios that are specifically tailored to the individual risk and return preferences, whilst providing diversification and efficiency traditional property investments are unable to.

Personalize Your Investment

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Invest in fractions of multiple high yielding properties across the region with the flexibility to suit your goals. Fractional shares provide the versatility, diversification, and efficiency to allow you to build your portfolio based on your personalized investment targets and risk preference.

How to Invest Through FracProperty

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DIY Investment

Ideal for the investors who opt for a hands-on approach, and are comfortable making decisions in managing their own portfolio.

  • Select a risk profile that you are comfortable with.
  • Deposit funds and start investing right away.
  • Choose from the multiple selections of properties that you want to invest in.
  • Invest in a single fraction, or build your own portfolio of fractions based on your investment goals.
  • Performance updates will be sent to you on a regular basis.
  • Regular property valuations will be conducted to assess the market prices of the holdings and will be reflected accordingly in the valuation of the portfolio.
  • Decide to continue or liquidate your fraction or portfolio upon maturity.

FAQ

What is FracProperty?

FracProperty is the first financial technology platform in Asia-Pacific to offer investment-grade properties either in whole or in fractional ownership units. Investors can choose to invest in any investment grade properties offered on our site, or purchase fractions of single or multiple properties offered.

How does FracProperty select properties?

FracProperty’s investment team comes with years of real estate investment experience. We leverage on both qualitative and quantitative analytics to generate the optimum results. Our artificial intelligence (AI) platform dramatically quickens and simplifies tiresome processes and experiences involved in identifying and selecting investment grade properties.

FracProperty’s proprietary AI algorithm analyzes hundreds of data sets such as housing prices, short-term rentals, historical transactions and neighborhood features to find the highest yielding properties in major Asian cities. The algorithm is the core Intellectual Property of SpeedProp, developed by a team of in-house researchers headed by an Oxford-trained Data Scientist.

Does FracProperty make investment recommendations?

FracProperty serves as a platform that provides investors with relevant information to make informed decisions on real estate. FracProperty does not make any recommendations about any property and investors should carry out their due diligence before committing to purchasing any property fractions.

Is FracProperty licensed to deal in fractional properties?

Our fractionalization platform operates under an Australian Financial Service License (AFSL) issued by the Australian Securities and Investments Commission (ASIC). The AFSL allows us the rights to issue, apply for, acquire, vary or dispose of various classes of financial products to both retail and wholesale investors.

Governed under Australian jurisdiction, FracProperty’s platform allows our members to log in online from anywhere, anytime to execute transactions through our servers in Australia.

What is Fractional Ownership?

Under the Fractional Ownership concept, property ownership is divided into many smaller affordable units and allows more than one buyer to purchase these units. Unlike traditional property transactions, the buyers of property fractions do not need to incur hefty initial capital outlays, rely on bank loans, or appoint agents or third parties to conduct the transactions.

Investors can benefit from regular income distributions, as well as a potential premium on buyback upon maturity of the fractions.

How is Fractional Ownership different from REITs?

Investors of property fractions own their respective share of the properties that they buy, whereas purchasers of REITs own shares of the REIT Company. Buying fractions also allow investors to choose properties in specific locations and risk/return profiles, rather than in a pool of properties across asset classes (residential, commercial, retail) and geographies like a REIT.

What is the difference between Fractional Ownership and Time Share scheme?

Fractional Ownership is the reform of the Time-Share scheme. Fractional owners own a share of the property and have the right to sell, transfer or entrust the share to others, while Time-Share investors have the right to enjoy the property for a specific time but not the property value. Time Share investors merely purchase future enjoyment of the property but not the property ownership, and the property ownership remains with the owners.

Is Fractional Ownership similar to Guaranteed Rental Return schemes?

Guaranteed Rental Return schemes are usually offered by developers to property purchases and guarantee the investors with a certain return. Fractional Ownership is better because purchases are investing in fractions instead of the whole unit, which reduces risks of investment.

How do I compare Fractional Ownership with Interest schemes?

Fractional Ownership could be offered in two models. First, investors’ names are registered in the title deed, or secondly, the investors are promised with specific return through a contractual agreement. The Interest Scheme Act 2016 governs the latter model. Fractional Ownership may be regulated by the Interest Scheme based on the model and arrangement.

What is the minimum/maximum investment limit?

The minimum investment is the price of a single fraction that is offered on the platform. On the other hand, you are free to purchase all the fractions of the properties or any of the individual properties being offered.

How many fractions will each property be divided into?

Each property will be divided into 1,000 fractions. There may be instances where the number of fractions may be higher or lower, depending on the value of the property and/or the percentage of the property being fractionalized. Any variations will be specified clearly in the details of each respective listing.

What happens if there is a balance of fractions that remain unsold?

There will be a moratorium on the sale of fractions during the first year of the listing. Once the moratorium is lifted, all transactions of the fractions will be based on the prevailing market price. FracProperty will not engage in any sale of the fractions and will appoint reputable market makers and/or liquidity providers to trade or disburse the balance of fraction, if any.

How do I exit from the fractional property investments?

All listings will be subject to a one-year moratorium on the sale of fractions. During this period, investors can sell or transfer their ownership of fractions off the platform to interested parties at their discretion.

As with any sale and purchase of a product, the ability to sell fractions will depend on the availability of willing buyers. In addition to selling fractions on the trading platform post-moratorium, there are two other exit channels available:

  1. The 5-year vote – Fraction owners of a particular property will be able to vote on or around the 5th anniversary of the property’s Settlement Date, and each 5 years thereafter, to determine if they wish to sell or maintain the listing of the property on the Platform. Should a majority of the fraction owners agree to sell the property, FracProperty will facilitate the sale of the property and the fraction owners will receive their proportionate share of any net proceeds of the sale minus fees.
  2. Discretionary Vote – Fraction owners of a particular property may choose to hold a discretionary vote to sell and conclude the investment period at any time. If a two-third-majority decision is achieve, the property will be sold according to standard procedure and all fraction owners will receive their proportionate share of any net proceeds of the sale after fees.

Where will the properties be custodized? And where is it regulated?

Each property secured by FracProperty will be held under a private limited company registered in the home country where the property is domiciled. For fractionalization purposes, either the entire unit or part thereof, proportionate shares of the private limited company will be held by an appointed Australian trust company regulated under Australian laws.

Who are the trust company overseeing the investors’ fund?

The separate and independent investors’ trust account will be set up for each property. The trust companies will vary according to the home countries in which the properties are domiciled. All trust companies employed for this purpose will be screened to ensure that they are regulated and registered with the respective authorities to certify that the necessary regulatory and security compliances are adhered to.

How is the valuation of the properties done, and how often?

Registered valuers in the home country where the property is domiciled will conduct the valuations. All properties are valued annually, with market appraisals conducted by an external firm of licensed, independent valuers. The valuations will serve as a price guide for investors to the properties, and will affect the pricing of the fractions depending on the results of the valuation process (i.e. up if the appraisal is higher and down if it is lower).

How are the monthly distributions and capital returns calculated?

Rental will be distributed on a monthly basis, after applicable fees and expenses are paid and accrued. Capital returns will be imputed into the fraction pricing based on annual valuations on the respective properties.

How will the purchases of the properties be funded?

Certain FracProperty Trust properties will be funded either entirely with equity or with a combination of equity and debt financing. Gearing for purchases will be applied where there is a reasonable case for optimizing potential returns on investment. The tenure and percentage of the borrowings will be dependent on the requirements of each listing. Procedures for fund borrowings will be in strict accordance with the FracProperty Platform gearing policies, and it is not expected to exceed 50% of the loan to value ratio. All borrowings will be subjected to stringent due diligence to optimize returns and minimize financing exposure.

Who holds the title/rights of the property?

FracProperty will be the proxy owner of the title of each property held under a private limited holding in the home country. Investors into the respective private limited companies will be accorded corresponding rights as shareholders.

For properties held under Trust, the Trust Company holds the respective properties on trust for the fraction owners. The Trust Company acts as a sub-custodian of each property held under Trust, and becomes the registered proprietor of the property.

How do I verify what I bought?

Investors of fractional properties will be issued a smart contract that specifies the details of the fractional holdings for a particular property. The smart contract represents the investors’ interest in the property according to their investment amount.

All purchases will also be updated on the Dashboard, which provides details of fractional holdings including balances, payout amounts, maturity dates of fractions (if any) and other relevant information.

What are the details that are provided for each of the property listings?

Each listing on the site will include a detailed description of the property, including property type, size, numbers of bedrooms and bathrooms, renovations, amenities, proximity to nearby public facilities, estimated rental yield and historical capital gains, and other relevant information.

What are the risks associated with investing with FracProperty?

As with any investments, investing with FracProperty has associated risks. We encourage investors to invest carefully, and to get personal advice from professional investment advisors and to make independent investigations before acting on information that we publish. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Note that past performance is not necessarily indicative of future results.

Are there any property investment risks?

All investments, including real estate, are speculative and involve substantial risk of loss. The performance and the value of any properties are subject to general economic conditions and property market risks, and may affect future income distributions, capital gains/losses and premiums on buybacks.

What are FracProperty’s Business Risks?

Fractional properties offered on the FracProperty platform are held in individual trusts with the investors as beneficiaries and are safeguarded by trust deeds. By holding properties separately, potential losses on any single property will not affect the financial viability of other properties offered on the platform. Likewise, any transactions of whole properties will undergo the necessary regulatory and administrative processes as required by the respective jurisdiction of the properties.

As such, if FracProperty ceases to exist, investors’ legal ownership of the assets will be secured by the trust deeds or individual titles of the properties.

Does FracProperty offer any guaranteed returns?

We do not guarantee any returns on the investments we offer on our platform. We advise investors to be wary of any schemes that claim to provide guaranteed returns.

Is there a limit to investors’ liability?

Yes. The liability for any investor is limited to the amount of capital that is invested.

What is the currency rate that is used for the transactions?

All transactions on the FracProperty platform will be done in Australian Dollars (AUD). In determining the Australian Dollar equivalent, the exchange rate used shall be the average of the buy and sell exchange rates (or mid-rate) announced by the Reserve Bank of Australia for Australian Dollars for the date on or as of the previous working day the determination is made.

Are there any eligibility requirements to invest via FracProperty?

Unless you are a US citizen or permanent resident of the United States, investments on the FracProperty platform are open to all investors regardless of “accredited investor status” requirements or your citizenship.

Individuals must be 18 years or older to qualify as an investor and to use the services provided on the Platform. We reserve the right to request evidence for age verification when required. Age requirements may differ according to each country’s jurisdiction where applicable.

Investors are required to complete our standard Know Your Client (KYC) procedures, as well as provide identity verifications and details of your preferred modes of payments and bank information (for funds to be credited to your accounts).

Why should I register for online account access?

With online access to your account you can:

– View your account balance and transactions

– Trade funds

– View statements for the past 12 months

– Update your account information

How safe is it to transact on FracProperty?

All transactions on the FracProperty platform are processed with strict security using the Secure Sockets Layer (SSL) protocol, the security standard used by the world’s top financial institutions. Upon login, a padlock icon will be shown in the status bar (the area where your web address is).

How do I view the records of my transactions?

A monthly e-statement in PDF format will be posted on your account every month. You can view your monthly statements, income distribution and unit holdings statements in your investment account on the Investor Profile section.

What is FracProperty’s Affiliate Program?

Experienced Team

FracProperty has the expertise to make this business model works. The team members have a unique combination of experienced Asset Management Fund Manager, Property Investment Experts, Best Seller Property Investment Influencers, Data Scientists, Blockchain and Artificial Intelligence Developers in Australia, Singapore, Malaysia, Hong Kong, and Shanghai.

Differentiated Technology

Our Artificial Intelligence (A.I.) platform is specifically designed to analyze hundreds of proprietary datasets such as housing prices, short-term rentals, historical transactions, and neighborhood features to find the highest yielding properties in any major city. Our A.I. platform analyses the region’s property market 24/7 for exceptional investment opportunities, beating the market with privileged insights of below market value properties in a way that human analysis will never match.
This proprietary A.I algorithm is the core Intellectual Property of FracProperty and is developed and managed by our team of in-house researchers headed by an Oxford-trained Data Scientist.

Trusted Financial Service

FracProperty operates its business platform in accordance with the rules and regulations of the Australian Financial Service License (AFSL), which is issued by the Australian Securities and Investments Commission (ASIC). ASIC grants us the right to issue, apply for, acquire, vary or dispose of various classes of financial products to retail and wholesale investors. Operating under the legislation of a highly reputed regulator aligns with our principles of integrity, transparency, and accountability in our business model.

License issued by an AAA credit rating regulator.

First Mover Advantage

FracProperty is perhaps the first platform in the region to offer fractional shares in investment-grade properties. Our Australian Financial Service License (AFSL) allows us to do just that, as Australia is among the first countries in the Asia Pacific to have a mature legislature on fractionalization.
This matured regulatory framework allows our business model to thrive as most countries in the region are barely only beginning to develop similar legislation. Moreover, our platform is supported by rigorous and robust infrastructure, and best-in-class technology, all of which creates an extremely high barrier-to-entry that no company without serious financial and expert backing can compete.