Group purchase of property: a smart investment option

Real estate investments are known for their potential to deliver solid returns. However, not everyone has the resources or willingness to finance a real estate project alone. This is where group purchase of real estate comes in - an approach that allows individual investors to work together and share the costs and benefits of a real estate project.

What is Group Acquisition of Real Estate?

Group purchase of real estate is an investment method in which several individuals jointly contribute capital to finance a real estate project. The aim is to share the financial burden and access investment opportunities that might otherwise be out of reach.

Advantages of group purchasing

1. Accessed: Sharing the financial deposit lowers the entry threshold for many investors.
2. Diversification: Investors can diversify their portfolio by investing in multiple projects instead of putting all their capital into a single project.
3. Risk spreading: By investing together, the risk is shared among the participants, making any financial setbacks easier to bear.
4. Expertise: Group purchases are often managed by experienced professionals or platforms that carry out due diligence, negotiate deals and manage the property.

Challenges of Group Purchasing

1. Limited control: Individual investors may have less control over decisions compared to a solitary investment. Immotokens solves this by establishing good agreements and ground rules.
2. Liquidity: It can be more difficult to exit a group investment compared to an individual property investment. Immotokens solves this by offering a secondary market where you can easily find new investors.
3. Depending on others: Success depends on the reliability and competence of both the co-investors and the managers of the group purchase. Here too, Immotokens plays a central role as a mediator for a successful outcome.

Immotokens: An Example of Innovative Group Procurement

A platform like Immotokens offers a modern twist on the concept of group purchase. They have two unique investment formulas:

1. Co-invest: In which investors from €100,000 become direct owners at the notary.
2. Starter: A lower entry option where investors invest from €1,000 indirectly in real estate through tokens representing their share in the real estate project.

Thanks to such innovations, group purchase of real estate is more accessible and flexible than ever before, making it an attractive option for both new and experienced investors.