The New Way Of Real Estate Investing: Real Estate Fractional Ownership

If you have been following us closely, you would know that we are big believers of the real estate fractional ownership movement. Well, that is why we founded Denzity! Today, I’d like to share with you the story of how we started Denzity and our thoughts on this movement.

Our story starts from our hometown, Hong Kong. With the city’s characteristic of free trade, low taxation, and minimum government intervention, it has been one of the world’s largest trading economy.

In recent years, the Hong Kong real estate price has dramatically increased. Rent has skyrocketed so high that life has become unaffordable. Many businesses have been forced to close as they can no longer afford rent. Recognizing this harsh reality, the city’s young generation have realized that owning a home will be impossible without a sizable mortgage or with help from family. In fact, they just want to have real estate ownership, as investment, without the need for placing all their eggs in one basket. They wish they had the opportunity to be part of the development phase in early Hong Kong, like their families had in the old days. Seeing the rapid development and urbanization around the globe, they wish to have the opportunity to invest into the future and shape the world they believe in.  

Feeling trapped in this vicious cycle, people have become increasingly frustrated and angry. This saddens me. How can the younger generation, like us, ever afford to invest in real estate and put our savings to work? I have constantly thought of how this crisis could be fixed.

After digging deeper, I have found the breakthrough – the real estate fractional ownership movement. It is a new method, which allows you to invest in a real estate investment projects with only the fractional of the property price through an online platforms. Through this type of real estate investing, you are able to invest in a wide variety of properties without having to deal with complicated processes such as working with mortgage brokers, real estate agents, or contractors.

The real estate fractional ownership platforms will also take care of the day-to-day tasks to ensure the successful completion. Allowing you to gain the returns without the hassle of managing your property. As these real estate fractional ownership platforms become popular in many different countries, you can diversify asset-backed investments worldwide with small amount of capital contribution. This movement is the medium by which everyday investors can overcome the traditional barriers to enter the real estate market. Starting with less than HKD $200,000, anyone can invest in real estate. Now, we can diversify our portfolio and lower risk by allocating capital to professional real estate managers and platforms. Having this goal in mind, Denzity was born.

By combing multiple platforms and presenting information easily digestible, Denzity can help Hong Kong people and other people from around the world to have an additional global investment gateway — allowing them to put their savings to work, something that could not be done before. The wealth generates from real estate is no longer barriered by the 1% who has the money to participate. This is the new way to seize the opportunities!

We hope our effort can make an impact to the people around us. More importantly, we hope this story speaks to you. To learn more, please join this movement with us, Denzity. Some of our followers have asked about our updates and we would like to share with you next time.

Thanks for staying tuned and speak to you soon.

Darren 

Co-Founder, Denzity

To follow us, subscribe to us here: http://eepurl.com/gHnWNf

Ask Me Anything: Real Estate Investing Abroad v1

Hey everyone!

We have started a questionnaire with the goal to help people around addressing questions or doubts one might have on real estate investment. My buddies and I always geek out on real estate investing, and we think it’d be a great idea to share what we have in the pocket and pick each other’s brains, too!

You can join this community by clicking here: https://forms.gle/vYAduHAeWkJ57ueC8

By joining this group, you can let us know more about yourself or any possible queries within real estate investing. All user’s questions will be kept anonymous and private. In return, we will reach out to the community and find the right experts to answer your questions. And, it’s totally free! We will regularly inform the community about the questions and answers we have collected.

– Darren & Denzity Team

Website New Look

Hey everyone, after months of work and gathering feedback from our beta testers, we would like to show you Denzity’s new look and feel!

We are only a couple of months away from launching the full product and will keep you updated with our progress and upcoming events by subscribing to our newsletter.

https://www.denzity.io/

Denzity website New Look
Denzity Website New Look

Great turnout at the Future of Real Estate Investing on May 30 2019

It was our pleasure to be one of the co-hosts for the Future of Real Estate Investing event on May 30 2019.

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Thanks for all the co-hosts (RealInflo, C Block Capital, Asia Proptech, ASTA, Mai Capital, FMI) for organizing the event together.

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We have shared our insights on Real Estate fractional ownership and why it needs to be popularized.

We hope everyone had a great time and looking forward to seeing you all soon.

Special thanks to Bryan Wong for taking photos for us. You can find more about him here: https://www.bryanwongdesign.com/

Sign up for our second beta test

Beta testing link: https://beta.denzity.io/

We received some great feedback and comments from our first beta testers (launched at the end of last year). We are close to launching our full version and would really value your feedback and suggestions!

How the beta testing works

As a beta tester, kindly browse the dashboard with your Mac/PC and follow on-screen instructions to test our latest tools and functions to screen investments. Your first visit should take less than five minutes, after that you can spend as long as you’d like!

As a beta tester, we gather your feedback to:

  • Screen for bugs and inconsistencies on our dashboard
  • Improve the Denzity experience by incorporating your comments and suggestions
  • Aggregate beta testing data to revamp our beta towards the full product

Afterward, you will be provided with a questionnaire to share your experience.

Thanks so much for your help and we look forward to learning your comments.

Join us and let’s get started now: https://beta.denzity.io/

Denzity is co-hosting for the event “Future of Real Estate Investing’ on May 30, 2019, in Hong Kong

How will technology solve the inefficiencies, unnecessary costs and unrealized value of today’s real estate industry?

Denzity will be a co-host for the event “Future of Real Estate Investing’ on May 30, 2019, in Hong Kong.

Come and join us for an interactive discussion as we look at the ways technology can improve real estate investment and management

You can find the event details here: https://bit.ly/2JffrUb

We look forward to sharing ideas with you there!

 

Co-hosts:

Denzity

Asia Security Token Alliance

Asia PropTech

Realinflo

FMI Investment Group

MaiCapital

C Block Capital

 

Date:

May 30, 2019 (Thursday)

Time:

6:30 PM – 8:30 PM

Venue:

C Block Capital, 35/F, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong

Realinflo, Our Community Partner

Denzity is proud to announce a partnership with Realinflo, a database platform that is creating the ‘Bloomberg’ for the real estate industry. We would like to introduce Realinflo (www.realinflo.com) to you as the newest member of Denzity’s community.

Traditionally, real estate information has been difficult and time-consuming to obtain. Realinflo solves this problem by providing access to granular transaction data and insights directly from the market. This is combined with their comprehensive land and building database to give a view of normally opaque real estate markets. Realinflo’s vision is to drive improvements in data standards and to become the leading data analytics platform, which is demonstrated by being the first Royal Institution of Chartered Surveyors (RICS) Tech-affiliated firm in the Asia-Pacific region. Currently, Realinflo tracks data on 68 cities in 25 countries across Asia, the Middle East and Africa.

Realinflo’s difference is in the details, for example for any particular building data points are available such as current leases, occupancy rates, historical sales transactions, development details, parameters and planning history. With a complete picture of the market, it is also possible to visualize how real estate markets have changed over time, future supply coming online and to run predictive analytics to make data-driven real estate decisions.

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Gary Walter MRICS, CEO and Co-Founder of Realinflo

Gary a Chartered Valuation Surveyor and has over 11 years’ experience in the real estate industry, with Swire Properties in Hong Kong and Colliers International where he worked extensively across markets in Asia. Frustrated by the lack of reliable data across the region, he founded Realinflo with the aim to raise standards and transparency in the region. Gary has also worked with Virgin Atlantic Airways and has a keen interest in non-profit and social impact work in Africa, having undertaken projects in Kenya, Rwanda, and Tanzania. In 2016 Gary was awarded the excellent Young Achiever of the Year in the Hong Kong RICS Awards and is a regular speaker at PropTech events.

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Denzity and Realinflo both presented at the Propteq Asia 2018 Conference

Gary views that Realinflo’s partnership with Denzity partnership is a natural collaboration in growing Denzity’s ecosystem in the real estate industry. Gary shares Denzity’s mission to match everyday investors with the best possible investment opportunities around the world. By having access to a diverse range of verified listings backed by comprehensive datasets, investors will be able to make informed decisions on which real estate investment best suits their risk-reward profile.

Join Denzity’s Exclusive Beta Tester Program Today

We need YOUR help to participate in our exclusive beta testing program.

We are inviting participants to test out Denzity’s dashboard and to share your ideas and feedback to help us develop the best possible product before releasing to the public.

By joining our exclusive beta testing program, you will enjoy the following benefits:

  • Early preview of products and services that we provide before being released to others
  • Early access and enrolment to upcoming events and conferences
  • Recognition as an early adopter on your individual Denzity profiles
  • Conversion to PREMIUM Denzity membership*

*A limited number of beta testers will be automatically converted to complimentary premium membership.

How the beta testing works

As a beta tester, we ask you to browse the dashboard with your Mac/PC and follow certain instructions to test tools and functions that screen investments. Your first visit should take less than five minutes, after that you can spend as long as you’d like!

As a beta tester, we gather your feedback to:

  • Screen for bugs and inconsistencies on our dashboard
  • Improve the Denzity experience by incorporating your comments and suggestions
  • Aggregate beta testing data to revamp our prototype towards Denzity 2.0

Afterward, you will be provided with a questionnaire to share your experience.

That’s it!

As Denzity will constantly improve as a product, we invite you to give us more feedback at a later stage.

How to participate

The registration will only take a few minutes. The Denzity team will review your registration and upon approval, we will provide you access as a beta tester on Denzity.

Join us and let’s get started.

〈 Become a tester 〉

 


Posts you might be interested:

Why we do, what we do: https://bit.ly/2yMUY18 

Equity vs. Debt Crowdfunding, which is right for me?: https://bit.ly/2OuxIvr

Introduction to Real Estate Crowdfunding: https://bit.ly/2Qmqknh

RECAS Group, our Community Partner

Denzity is proud to announce a partnership with RECAS Group, a fully integrated real estate firm providing asset management, investment management, and advisory services to the real estate market in Mainland China, Hong Kong, Macau, and other countries. https://www.recas-group.com/

RECAS Group

RECAS Group (formerly Real Estate Capital Asset Services Limited) was founded in 2004 by Ivan Ko, its current chairman, who has over 25 years experience in real estate development and finance experience. The Denzity team first met Ivan at a PropTech event in Hong Kong and discussed the real estate industry’s future and what kinds of innovation will lead to the greatest impact in elevating the global real estate market.

Ivan identifies that PropTech can bring a positive impact to the real estate industry and RECAS Group believes in Denzity’s mission to serve an identified gap in the real estate crowdfunding market by matching everyday investors with the best possible investment opportunities available around the world.

Ivan has actively participated in PropTech hackathons and events, most recently the Asia PropTech Innovathon (pictured below) as one of the judges and where Denzity was fortunate enough to meet Ivan.

Ivan Ko (right) presenting the “Day in the Life of Real Estate Executive Award” as Chairman of the China Real Estate Chamber of Commerce Hong Kong and International Chapter (CRECCHKI) at the Asia PropTech Innovation in Hong Kong, August 2018.

From Ivan’s point of view, innovation and technology services to close gaps in the traditional real estate market, whether unidentified or previously thought impossible. For this reason, PropTech may not receive industry-wide recognition now but is a wave of positive change. From his experience, real estate owners in Hong Kong have generated a decent return by being inefficient in buying and holding a real estate portfolio which has simply experienced tremendous capital appreciation over the recent two decades.

This is why he believes Hong Kong should be at the forefront of PropTech development and tackle key issues like accessibility since Hong Kong is one of the most unaffordable residential markets globally. Ivan recognizes that consistent small improvements in technology and innovation will improve the quality of real estate services provided in the best cost-benefit to corporate users.

To become a leading PropTech hub, Hong Kong provides a strong international environment where access to capital, rule of law (such as IP protection), free flow of information, ease of setting up a business, welcoming attitude to foreign workers and new economic growth companies make Hong Kong a sweet spot for any PropTech firm.

PropTech firms need only bring their innovation to strive in a best practice environment of leading real estate developers and investors. This is a market where “dreams” turn into reality. Ivan supports PropTech firms and Hong Kong as a forward-looking city to become recognized as an industry leader.

As a fully integrated real estate firm, RECAS invites PropTech entrepreneurs from all around the world to build their innovation in Hong Kong. Ivan and his team bring a tremendous amount of experience, connections, and wisdom. As a PropTech firm or investor, you can send Ivan an email here if you would like to seek his advice.

Denzity will keep you up-to-date on upcoming events worth your attention and if you’re not already signed up, make sure to sign up to receive the latest updates!

What you need to understand about real estate capitalization rate (Part 1 of 4)

Real estate investment is an opportunity to generate regular income and achieve capital appreciation in a stable asset held over a 5–15 year period. Real estate investors typically compare investment opportunities start by using one key metrics: Capitalization Rate, aka Cap rate.

In this article, we highlight how you should understand how to compute the cap rate and how to use cap rate when comparing different real estate crowdfunding investment opportunities.

This is part 1 of 4 articles covering the real estate cap rate:

  1. What is the real estate cap rate?
  2. What you need to understand about the real estate cap rate?
  3. How does the real estate cap rate form part of your investment analysis?
  4. How leverage helps you achieve your investment goal in real estate.

Part 1: What is the real estate cap rate?

Cap rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. It is calculated by dividing the property’s net operating income (“NOI”) by the current market value or acquisition price of a property.

Capitalization rate = Net Operating Income / Current Market Value (Source: Investopedia)

Once an investor knows a property’s cap rate in a specific market, the cap rate can be used to compare with other types of real estate cap rates located in different markets around the world to understand which is more suitable to their investment preference. We have made a quick guide for you below:

Understand the Real Estate Cap Rate

That’s it!

Let’s use an example: an investor (Bill) wants to achieve a 12% annual return over 5 years by investing in real estate.

Bill decides to purchase an office building for $600,000 that generates $60,000 of net operating income (NOI), which represents a 10% cap rate. This means the property value would need to increase by at least 2% per year to meet Bill’s goal of 12% annual return.

Bill decides to achieve his investment goal by being more dependent on the cash flow (net operating income) generated as rent by the office building’s tenants, rather than a strong capital appreciation.

In this example, Bill is characterised as a defensive, income-based real estate investor seeking real estate investments that require minimal out of pocket expenses (e.g. refurbishments). In case you are wondering: yes, we will cover different investing style and types of investment play in future blog posts.

In Bill’s case, the cap rate is a key metric to begin his initial screen to compare real estate investment opportunities. For example, a shopping mall being sold at an 8% cap rate means that Bill would rely on (i) strong capital appreciation and/or (ii) leverage in order to achieve Bill’s goal of 12% annual return.

Cap rates are an important way to screen investments and narrow down a list of investment opportunities which suit your individual preference. Once you’ve decided on which investment opportunity to pursue, you will need to gain a better understanding of the real estate’s location and market conditions to form your investment analysis.

An important aspect here is timing — something which Denzity wants to clarify with ‘cap rate compression’, explained below.

What will we cover in Part 2?

We have just scratched the surface when it comes to cap rates! There are more metrics you should take into account when making an investment decision.

In our next article, we will discuss how you should understand and compare the cap rates of different types of real estate located in different places around the world to decide on which best suits your investment preference.

We at Denzity are here to help you understand the key metrics and provide insights. We hope these articles provide you with insight into the real estate investment process and journey!

If you’re not already signed up with Denzity, make sure to sign up to receive the latest updates!