A lot of people may wonder how sharing can ultimately improve their quality of life. Well, for one, sharing can actually create meaningful connections and provide better opportunities. In today’s era, the word ‘sharing’ goes way more than just its book-definition.
As adults, sharing means being practical. There are many options for people to share—may it be through jobs, transportation, and properties. The many benefits of sharing have paved the way for more people to consider it. Property sharing has become more pragmatic and cost-friendly.
In this blog, we will delve more into property sharing and why it’s the right option for you. Property investment is quite a luxurious investment and so a lot of people cannot afford to buy a property upfront. And so, the property sharing option gives them a chance to own a specific percentage of a property. This way they get to achieve their dreams without being financially burnt out. Awesome, right?
But why do it? Well, a lot of reasons actually, and here are some of them.
This refers to increasing your property shares overtime. Almost all developers engaged in property sharing will allow you to staircase. There are some that would even cap it at 75%, while others would go as high as 100%.
One of the biggest obstacles with first-time real estate investors is the big deposit. Thankfully, the property sharing scheme eliminates such a challenge. With this, you can purchase parts or percentage of the property and share the rest with others. No need to shell out a hefty amount for the deposit.
Grow Your Equity
There are tons of ways to share ownership. To elaborate, for example, Nathan, Emily, and Letty decided that they want to share a set of hardware tools. So, here are some ways of ownership possibilities.
Even with just a small deposit, you can still enjoy the benefits of growing equity as you continue to pay the mortgage, provided that your property increases in value. An increased home value could greatly benefit you once you decide to sell your share.
Say, for example, you bought 50% share of $120,000, which is $60,000. Luckily, the value increased to $140,000, as such it means you can sell your share for $70,000.
Lowered Monthly Costs
Owning a property privately can take a toll on your monthly financial condition. Not only does it require maintenance and mortgage, but you would also face unprecedented expenses as you go along the way. But with property sharing, that cost can be divided. This means that your cost will be reduced while building your overall equity.
Property sharing can allow you to invest at your comfort level. In the end, it reduces the risk of owning multiple properties. And contrary to popular belief, you still get to choose the property you want to invest in.
Is Property Sharing Good for Me?
Practically speaking, yes it is, especially if you’re a newbie investor. It’s a great way to enter the world of real estate investment without having to risk everything you’ve saved up for. But like with any other investment, it should be done cautiously. You have to weigh in the pros and cons.
Property sharing is a good alternative for anyone who wishes to invest. And while risks are inevitable, it should not stop you from achieving your dreams of investing. With MTLOA, we value our client’s trust and we ensure that your investment is in the right hands. Our team of professionals will guide you as you go along the process.
Join our investor club and visit our website at mtloa.com for more information.