In Canada, the soaring prices of housing in major cities have left many potential buyers struggling to enter the market. With average home prices in cities like Vancouver surpassing $1.2 million and Toronto sitting above $1.08 million, the dream of homeownership seems out of reach for people with average incomes. In response to this affordability crisis, one company, BuyProperly, has utilized artificial intelligence to offer a unique solution – fractional real estate ownership.
By allowing customers, particularly young buyers, to purchase a fraction of a property, BuyProperly enables them to access the residential and commercial real estate market at a price point they can afford. Khushboo Jha, the CEO and founder of BuyProperly, explains that their platform facilitates the appreciation of customers’ money in the housing market. This innovative service has attracted significant interest from Canadians who feel overwhelmed by the runaway housing market, despite their consistent efforts to save for a home.
Investing in fractional real estate ownership is accessible to individuals with as little as $500 to start. Notably, customers have the choice to invest in either residential or commercial properties, the latter being an avenue typically restricted to the general public. BuyProperly has been providing these investment services since 2020, offering a five-year commitment with the potential for a 20% annual return. Additionally, there is a secondary market where customers can sell their portion of the property before the end of the term.
The appeal of fractional real estate ownership lies in the stability it offers. Unlike real estate stocks (REITs), where investors purchase shares in publicly traded companies, BuyProperly allows investors to become direct owners of physical properties. Khushboo Jha emphasizes that the assets are backed by tangible land or buildings, reducing the chances of volatility. To further diversify customers’ real estate holdings, BuyProperly selects subsectors such as medical buildings and storage facilities.
As with any investment, it is essential to acknowledge the potential for real estate values to decline. However, BuyProperly remains committed to making real estate accessible, aiming to expand their offerings to include properties in the United States and Canada. They are also exploring the creation of a recurring investment model, simplifying the process for customers to invest more funds in these fractional ownership deals.