What is the difference between a real estate fund and property?

It has been a stable investment since the creation of money: real estate. Today, it is one of the most popular forms of investment because of its stability in value, attractive returns and relatively low risk.

How to start investing in real estate

However, buying an entire home or commercial property is not for everyone. Therefore, there are two options that people often look at:

• The property fund
• The real estate investment via Immotokens

Although both methods allow you to invest in real estate together with others, there are clear differences between these two options. To give you a complete and honest picture, we will take a closer look at both options.

The property fund

A real estate fund is, as the name implies, an investment fund that invests purely in real estate such as office spaces, business premises and houses. From this, profit is derived from rental income and the eventual sale of a property.

People who invest in a property fund often receive a small percentage interest on the amount they invest. Over the years, this has proved to be a very stable form of investment.

However, there is a drawback. Almost every real estate fund uses so-called participation fees. This is the minimum amount that must be deposited in order to participate in the real estate fund. The amount can vary from fund to fund, but is often between one thousand and ten thousand euros.

Investing in real estate with little money

Not everyone is prepared to invest such large sums in a single fund straight away. Are you looking for a way to investing in real estate with little moneythen immotokens are a suitable option.

Built on blockchain technology we have smart contracts developed with which people be able to invest in real estate togetherand you can do so from as little as €50. Would you like to know more about Immotokens, how it works and how it is a low-threshold but extremely strong way to invest in real estate? Then read about it here more about.