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Author name: vishnu padyachee

An Exclusive Opportunity to Own a Share of a High-Return Private Student Residence As an Alternative to Traditional Property Funds
investment opportunity

White House Student Residence Investment:

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South Africa is currently facing a significant shortage of student accommodation, with thousands of students struggling to secure safe, affordable housing each year. This growing demand has created a unique opportunity for investors to participate in the student housing market, offering a stable and profitable income stream.

Real estate investing comes in many forms. Now, fractional real estate is emerging as a game-changer in offering an innovative solution to the affordability challenge of property investments. The scope of fractional ownership in commercial real estate can also extend to retail and industrial properties, including shopping centres, warehouses, and industrial complexes What is a fractional share in a property ? A fractional share in a property is you owning a percentage or part of the property. Let’s assume you are purchasing a building for R1 million rand and there are 20 shares of R50 000 each If you purchase 1 share then your fractional ownership is 5% of the building OR 1/20th share of the property. . When will I receive my dividends and how is it calculated? Dividends is paid every 6 months from date of occupation; this is calculated based on the income VS expenses of the building for that period. What are the main risks? Like with all investments, there are risks with property investments. These include tenant risk, management risk, municipality issues; we have been able to manage the extent of these risks with the expertise of our management team, with their combined over 60 years of experience in the property market. We have engaged new technology and management techniques to minimise risk on a FRACTIO property What happens if the building is destroyed by fire or riots? All our properties are fully insured against any loss and we pride ourselves and maintaining safe buildings that conform to South African building and safety standards Who pays the monthly expenses like water and rates? FRACTIO takes care of all of this within the management of the building. We also have prepaid consumption meters in all units to avoid nasty surprise of municipality bills. Rent collection, utility payments, property maintenance, rates payment, tenant management, tenant eviction … we have it all covered and pay these from the operational expenses in the building. Can I visit the building when I want to? Shareholders are allowed to visit the property within a 14-day window between construction completion and date of occupation. We do not offer shareholder visits while the property is occupied by tenants. We must honour a level of privacy as this is a home to our tenants ! Who is behind Fractio? Fractio is the brain child of our CEO Sershin Moodley, who after 20 years in the bank and property finance industry where he has structured or brokered over 1 Billion Rand of property transactions for his clients, has started FRACTIO as part passion project part business opportunity by wanting to take wealth creation to the masses. Along with Sershin is a host of other professionals including independent auditors and attorneys, contractors, architects and other professionals in the built environment space. How will I know if I am being paid the right percentage of the profits ? Fractio will provide financial statements for each property you invest in on a yearly basis which will allow you to track your dividends. These financials will be complied by our internal finance team and audited by an external independent firm of accountants. Will the property be registered in my name? No all properties are registered in a special investment vehicle with FRACTIO as the owner, your ownership portion or share is then allocated to that property according to the proportion that you purchased. Can I purchase a share in my child’s name or in a company/trust? Yes you can, as long as you can provide us with proof of where your invested funds came from and an ID document or Company documents of the name of the shares we can issue you shares. Want to learn more about how fractional property can help you build long term generational wealth? Contact Fractio
finance

Fractional Real Estate: A Game Changer to the affordability challenge of property investments.

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Real estate investing comes in many forms. Now, fractional real estate is emerging as a game-changer in offering an innovative solution to the affordability challenge of property investments.

The scope of fractional ownership in commercial real estate can also extend to retail and industrial properties, including shopping centres, warehouses, and industrial complexes

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