Joint purchase is a method of purchase whereby the
purchase of a particular property is made by two or more parties. There are a
number of reasons why we choose joint purchase option in real estate investment.
#1. Shared
risk
A joint purchase is an effective risk diversification
strategy, for all risks of investing in real estate funds will be shared among
all parties. For illustration, the profit or losses are shared among all
parties based on previously agreed-upon ratios.
#2. Greater
cumulative purchasing power
The creation of cumulative purchasing power through joint purchase
comes from greater capital. When there are two or more parties who are willing
to buy a property together, they can start looking at properties with higher
price tag that they otherwise would not be able to afford individually. They
have more selection now.
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