Shared ownership, also known as fractional ownership, is a real estate investment market concept that allows individuals to purchase a portion of a property, whether it's under construction or ready for rental. This method is prevalent in the US and Europe and is primarily used for investment rather than personal residence.
Under shared ownership, multiple investors can become co-owners of a property, such as a house, and they receive income in proportion to the amount they've invested. To facilitate this, management companies handle various aspects of property ownership. These management companies are responsible for property maintenance, tenant acquisition, and the distribution of rental income among the co-owners.
Each co-owner typically has access to an electronic dashboard, which provides information about their purchased share, its current value, and rental income generated and allows them to withdraw their share. This approach to real estate investment enables individuals to invest in properties they might not be able to afford entirely on their own, and it offers a way to earn income from those investments.