What is BMVProp?
BMVProp is the first financial technology platform in Asia-Pacific to offer investment-grade properties either in whole or in fractional ownership units. Investors can choose to invest in any investment grade properties offered on our site, or purchase fractions of single or multiple properties offered.
How does BMVProp select properties?
BMVProp’s investment team comes with years of real estate investment experience. We leverage on both qualitative and quantitative analytics to generate the optimum results. Our artificial intelligence (AI) platform dramatically quickens and simplifies tiresome processes and experiences involved in identifying and selecting investment grade properties.
BMVProp’s proprietary AI algorithm analyzes hundreds of datasets such as housing prices, short-term rentals, historical transactions and neighborhood features to find the highest yielding properties in major Asian cities. The algorithm is the core Intellectual Property of Speedprop, developed by a team of in-house researchers headed by an Oxford-trained Data Scientist.
Do BMVProp make investment recommendations?
BMVProp serves as a platform that provides investors with relevant information to make informed decisions on real estate. BMVProp does not make any recommendations about any property and investors should carry out their own due diligence before committing to purchasing any property fractions.
Is BMVProp licensed to deal in fractional properties?
Our fractionalization platform operates in accordance to the Australian Financial Service License (AFSL) issued by Australian Securities and Investments Commission (ASIC). The AFSL allows us the rights to issue, apply for, acquire, vary or dispose of various classes of financial products to both retail and wholesale investors.
Governed under Australian jurisdiction, BMVProp’s platform allows our members to log in online from anywhere, anytime to execute transactions through our servers in Australia.
What is Fractional Ownership?
Under the Fractional Ownership concept, the property ownership is divided into many smaller affordable units and allows more than one buyer to purchase these units. Unlike traditional property transactions, the buyers of property fractions does not need to incur hefty initial capital outlays, rely on bank loans, or appoint agents or third parties to conduct the transactions.
Investors can benefit from regular income distributions, as well as a potential premium on buyback upon maturity of the fractions.
How is Fractional Ownership different from REITs?
Investors of property fractions own their respective share of the properties that they buy, whereas purchasers of REITs own shares of the REIT Company. Buying fractions also allow investors to choose properties in specific locations and risk/return profiles, rather than in a pool of properties across asset classes (residential, commercial, retail) and geographies like a REIT.
What is the difference between Fractional Ownership and Time Share scheme?
Fractional Ownership is the reform of time-share scheme. Fractional owners owns a share of the property and have the right to sell, transfer or entrust the share to other, while Time Share investor have right to enjoy the property for specific period of time but not the property value. Time Share investors merely purchase future enjoyment of the property but not the property ownership, and the property ownership remains with the owners.
Is Fractional Ownership similar to Guaranteed Rental Return schemes?
Guaranteed Rental Return scheme are usually offered by developer to property purchase and guarantee the investors with certain return. Fractional Ownership are better because purchase are investing in fraction but not whole unit, which reduce risk of investment.
How do I compare Fractional Ownership with Interest schemes?
Fractional Ownership could be offered in two models. First, investors’ names are registered in the title deed, or secondly, the investors are promised with specific return through contractual agreement. The Interest Scheme Act 2016 governs the latter model. Fractional Ownership may be regulated by the Interest Scheme based on the model and arrangement.
What is the minimum/maximum investment limit?
The minimum investment is the price of a single fraction that is offered on the platform. On the other hand, you are free to purchase all the fractions of the properties or any of the individual properties being offered.
How do I exit from the fractional properties investments?
You can exit your ownership in two ways:
Resale of your fractions: You can choose to sell your holdings to anyone at a mutually agreed price either privately or through the trading platform.
Maturity of Fractions: If the properties include a time-based mandate, the fractions will be redeemed back to the owner upon maturity and any proceeds from the exit will be credited to the investors’ accounts.
How do I verify what I bought?
Investors of fractional properties will be issued a smart contract that specifies the details of the fractional holdings for a particular property. The smart contract represents the investors’ interest in the property according to their investment amount.
All purchases will also be updated on the Dashboard, which provides details of fractional holdings including balances, payout amounts, maturity dates of fractions (if any) and other relevant information.
What are the risks associated with investing with BMVProp?
As with any investments, investing with BMVProp has associated risks. We encourage investors to invest carefully, and to get personal advice from professional investment advisor and to make independent investigations before acting on information that we publish. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Note that past performance is not necessarily indicative of future results.
Are there any property investment risks?
All investments, including real estate, are speculative in nature and involve substantial risk of loss. The performance and the value of any properties are subject to general economic conditions and property market risks, and may affect future income distributions, capital gains/losses and premiums on buybacks.
What are BMVProp’s Business Risks
Fractional properties offered on the BMVProp platform are held in individual trusts with the investors as beneficiaries and are safeguarded by trust deeds. By holding properties separately, potential losses on any single property will not affect the financial viability of other properties offered on the platform. Likewise, any transactions of whole properties will undergo the necessary regulatory and administrative processes as required by the respective jurisdiction of the properties.
As such, in the event that BMVProp ceases to exist, investors’ legal ownership of the assets will be secured by the trust deeds or individual titles of the properties.
Does BMVProp offer any guaranteed returns?
We do not guarantee any returns on the investments we offer on our platform. In fact, we advise investor to be wary of any schemes that claims to provide guaranteed returns.
Is there a limit to investors’ liability?
Yes. The liability for any investor is limited to the amount of capital that is invested.
Are there any eligibility requirements to invest via BMVProp?
Unless you are a US citizen or permanent resident of the United States, investments on the BMVProp platform are open to all investors regardless of “accredited investor status” requirements or your citizenship.
Investors are required to complete our standard Know Your Client (KYC) procedures, as well as provide identity verifications and details of your preferred modes of payments and bank information (for funds to be credited to your accounts).