What Is Fractional Ownership?
Fractional ownership means you own a part (fraction) of a property together with other investors. You don't have to buy the whole apartment — you can own for example 5% or 10%.
"Better to own part of a property than none at all — you can always buy more, or eventually acquire the whole thing."
How Does It Work?
Traditional Model
- You want to buy an apartment for €200,000
- You need €40,000 of own resources (20%)
- Bank lends you the rest
- You repay mortgage for 20-30 years
Fractional Model
- Apartment worth €200,000 is divided into 1,000 shares
- Each share costs €200
- You buy 50 shares for €10,000 (5% of apartment)
- You receive 5% of income from the property
Advantages of Fractional Ownership
1. Low Entry Barrier
You don't need €30,000 for a down payment. You can start with smaller amounts.
2. Diversification
For €30,000 you can own shares in 5-6 different apartments instead of one. You reduce risk.
3. No Mortgage
You buy with cash, no debt, no interest, no risk of default.
4. Passive Investing
You don't have to deal with tenants, repairs, management. The platform handles everything.
Risks of Fractional Ownership
1. Liquidity
You can't sell your share as quickly as an ETF. You need to find a buyer.
2. Platform Dependency
If the platform goes bankrupt, there may be issues with your investment.
3. Regulatory Uncertainty
Fractional ownership is a relatively new concept. Regulation is still evolving.
HomeGrif Model: SPV Structure
HomeGrif uses an SPV (Special Purpose Vehicle) model for maximum investor protection:
How It Works
- A separate company (SPV) is established for each property
- Investors own shares directly in the SPV, not in HomeGrif
- The property is owned by the SPV, not HomeGrif
- If HomeGrif ceases operations, the SPV and your shares remain
What This Means for You
- Legal protection: Your assets are separated from HomeGrif's operations
- Transparency: You see exactly which property you own
- Control: As SPV co-owner you have rights
Comparison with Other Investments
| ETF | REIT | Buy apartment | HomeGrif | |
|---|---|---|---|---|
| Min. investment | €50 | €100 | €30,000+ | €500 |
| Diversification | High | High | None | Possible |
| Liquidity | High | High | Low | Medium |
| Direct ownership | No | No | Yes | Yes (SPV) |
| Volatility | High | High | Low | Low |
Who Is Fractional Ownership Suitable For?
- Young investors without capital for whole apartment
- FIRE community looking for diversification
- Those wanting passive income without hassle
- Expats investing in Central European property
Get started: Explore available properties and their yields. With HomeGrif, entry is simple and transparent.