Question

In your opinion, what are the risks to an investor who is buying a property in fragments through Bricklets? (300 word limit)

Please can someone answer this question!!

Answer 1

Fragmented properties are those properties which are separated as portions or broken as fragments for the investors to purchase.Fragmented properties are sold as fragments or bricklets which people own outright for a portion of the property's total value.(typically 1/20 of the cost). Fragments are registerd to the investors on title deed in which the investors hold their fragments in their own right without purchasing it entirely

Fragmented property involves passive investment, with no property managment required. It benefits the investors those who are looking to optimise their property portfolio through wealth accumulation. It gives the investors to purchase those fragmented property of its own wish and to invest in which type of property. Hence investors can purchase those fragmented property realising which property may boom in the market knowing the areas of expertise.

Fragmented property risk is that the investors purchase the fragmented property through the help of small finance agency and hence large proportion of money is uncertain to gain. According to the market conditions when any unforeseen conditions prevails the small finance agency can't manage the upfront cost if occurs with the property. The investors can take the privelage of taking the capital gains and the rental yield if the property is sold at a lower upfront cost.According the market conditions prevailing the property's may result in lower cost. If the investors needs to sell the property they need to check the rates prevailing in the market.If its value decrease that may also affect the investors adversely.

Hence we can say that property buying as fragments is riskier.