Fractional property investment

But with fractional property investing, you can invest much smaller amounts via platforms that let you purchase shares in their rental properties – starting with as little as $250.

You can benefit from capital growth as prices rise, and get a share of rental income too. It can be a simple, flexible way to add property to your portfolio. But you will have to pay a fee to the investing platform, and you won't truly own your share of the property.

What is fractional investing?

With fractional property investment, a company purchases a property it believes will grow in value. Then it divides the cost of the property into shares. It sells these shares to investors. Investors receive income from rent charged on the property and can also get capital returns on the property when it is sold or when they sell their shares.

The cost of the shares will rise (or possibly fall) as the property's value grows (or falls). You don't have to manage the tenants, because the platform handles it all for you.

Unlike traditional property investment, fractional property investment offers liquidity. This means investors can cash out their investment at any time by selling their shares. Investors who buy an entire property don't have this flexibility.

Is fractional investing worth it?

When weighing up whether it makes sense for you, consider things like how much money you want to invest with; whether it's important to you to have access to your investment in an emergency; and what your long-term goals are.

As an investing strategy, fractional investing is pretty straightforward. Here's a simple example of how it works:

1. You sign up to a fractional investment platform like Bricklet or BrickX.
2. You view the properties available on the platform.
3. You select a property (or properties) and choose an amount to invest.
4. Once selected, you can monitor the performance of your property shares.
5. You receive a portion of rental income based on how much of the property you own on a regular basis.
6. You can keep your shares or sell them as the value grows.

Some of these platforms have an option to choose the property mix for you, blending your investment into multiple properties without you having to do anything.

Expert insight

"Just like the process of choosing a managed fund, the success of a fractional investing opportunity comes down to the fees you have to pay and the investment potential and returns from the property chosen."

Belinda Urquhart

Property Alchemy

What are the benefits of fractional property investment?

• Lower entry costs. By splitting the cost of a property into shares, investors can gain exposure to property investing for a small initial outlay. You won't need to save a large deposit and take out an investment loan – in fact, you can invest with as little as $250.
• Cash out faster. Fractional property investment is a liquid investment. Fractional property investors can sell their shares whenever they want and receive a return proportionate to the increase in value of the property.
• Property selection. It's not easy to pick winners in property investment. Fractional platforms have analytical tools and experts helping them choose investments these companies believe will outperform the average. You can get exposure to multiple properties.
• Diversification. Fractional property investment lets investors get some exposure to property as an asset class when they otherwise wouldn't be able to afford it.

What are the drawbacks of fractional property investment?

• Smaller returns. Because you're investing a smaller amount of money and don't own an entire property, your returns will obviously be smaller.
• No actual ownership. Another potential drawback is that investors own shares of property rather than a tangible asset. A traditional property investor has the option to become an owner-occupier in their property should the need arise. They can also add value by renovating the property. This option isn’t available for fractional investors.
• Costs. You have to pay fees to the platform, typically a percentage fee charged when you invest initially and again when you sell.

Can I buy fractional shares in Australia?

The 3 main fractional investment platforms in Australia are BRICKX; Assetora Limited, formerly known as DomaCom; and Bricklet, which is available to investors and homeowners.

BrickX

BrickX finds properties with positive rental returns and the potential for strong capital growth. The platform purchases these properties and divides the cost into 10,000 shares, or "Bricks". Investors can buy and sell Bricks on the platform and receive monthly rent payments proportional to the size of their investment.

Fees are charged when you buy and sell your bricks. BrickX charges a purchase fee that is 0.5% of the cost of the bricks you purchase. The company charges another 0.5% fee when you sell (based on the price at the time of sale).
To become a Member, you need to invest a minimum initial deposit amount of $250 (inclusive of a $10 application fee). This amount will appear in your Wallet which you can use to buy Bricks.

They also deduct additional fees from the gross rental income of the property, before any distribution is paid to you for the relevant month:

• a property management fee of 6% received from each tenanted property on a monthly basis;
• $0.0075 per Brick on a monthly basis to cover annual audit and valuation fees; and
• property expenses (bills, strata, council tax, insurance, property management, repairs, valuations, etc)

Bricklet

There is a third option that is geared more towards home owners than investors, called Bricklet. With this platform, you save up a small deposit and then apply for a shared equity home loan, essentially entering into an ownership agreement with investors. You onw a portion of the home, and property investors own the rest of your home, and you pay them on their share. You have the same rights to occupy or even sell your property just like a normal homeowner, however you're living under a shared homeownership model.

You pay the mortgage repayments on the part of the home that you own, as well as the market rental rate to the investor on the portion they own. If and when you decide to sell the property, the investor will receive their share of the profit.

Assetora Limited (formerly DomaCom)

The DomaCom investment platform is still active and operating, but it has gone through a major corporate restructuring and name change.

After a turbulent period starting in July 2024, where the trustee suspended the flagship DomaCom Fund from taking on new money due to massive capital losses in its NDIS housing sub-funds, the fund restructured.

In April 2025, the parent company officially changed its name from DomaCom Limited to Assetora Limited, and its ASX ticker changed from DCL to AOH. The fund formally reopened for new business in August 2025.

Since then, they have pivoted away from property, transitioning from a pure property-fractionalisation model into a wider comprehensive investment hub. They are focusing on private credit, alternative assets, and health technology.

What about real estate investment via crowdfunding?

In the real estate world, crowdfunding allows investors to buy a share of a property or development project.

It's similar to fractional property investment. But instead of buying into an existing property owned by the investment platform (which is how fractional investing works), crowdfunded investments rely on multiple investors coming together to fund a new development or property purchase.

While crowdfunded investing is popular in some countries, it is not really offered in Australia.

More guides and help for property investors

Written by

Sarah Megginson

Money expert + media spokesperson

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Sarah is the author of How to Raise Rich Kids. With over 20 years of experience in property, finance and investment journalism, she is a trusted expert whose insights regularly appear across television, radio and print media, including Sunrise, Channel 7 News, Bloomberg and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker. Her expert advice has been shared in the media over 4,000 times. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards. See full bio

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