What is fragmented or fractional property investing?

With the average home value in Australia's capital cities now more than $1 million, it might seem like property investing is a pipedream for an increasing number of people.

But what if you could invest in part of a property? There are a number of ways you can do it.

What is fractional or fragmented property investing?

Essentially, fractional or fragmented property investing allows you to invest smaller amounts of money into property. Although the terms sound similar, they mean slightly different things:

• Fractional: Investors generally don't hold title to the property, instead buying a share in a trust or company that holds the title of the property

• Fragmented: Fragmented property investment generally involves investors' names on the property title, reflecting their portion of ownership

The theory behind both approaches is that you get your foot on the property investment ladder sooner without having to save a large deposit while also reaping the benefits of property, which is generally seen as a relatively ‘safe’ investment class compared to other assets such as shares.

See also: Investing on the stock market: A beginner's cheat sheet

Some platforms that facilitate micro property investing in Australia include:

• BrickX
• Assetora (formerly DomaCom and listed on the Australian Stock Exchange from March 2025)
• TicX
• Bricklet

Fractional/fragmented property investing: Pros & Cons

Pros

• Low barrier to entry: Can invest small amounts as available rather than having to save for a large deposit
• Diversification: Fractional investment may not be limited to one property and can be spread among a portfolio of different property types (including residential and commercial) and different locations
• Accessibility to higher-grade assets: Investors can secure a stake in more expensive or investment-grade assets than if they were to purchase as an individual
• Professional management: In many schemes, day-to-day matters are handled by professional property managers and some costs may be lower due to economies-of-scale advantages
• Can be a passive income stream: With no hands-on management required, some investments may provide a source of passive income
• Better liquidity: It can be easier to sell  an investment via a property investment platform than it is to sell an entire property. (This applies moreso to fractional investments.)

Cons

• Fees and costs: Investors need to account for fees and other charges - such as set-up charges, ongoing annual management fees, and exit fees - levied by investing platforms. For fragmented investments where investors' names will be on the title, there will be relevant stamp duty and other property purchase fees
• Lack of control: Investors in fractional platforms generally have little to no say in investment or property management decisions
• Not as liquid as share investing: Some investing platforms may impose rules around selling. Divesting may also be difficult and protracted under a fragmented investment model
• Risk of platform failure: In the event a fractional investing platform goes bust, your name does not appear on any titles and you could risk losing your investment
• No tax benefits: Investors in fractional platforms will generally not receive the same tax benefits as property investors whose names appear on a property title. Both types of investments will attract capital gains tax if they are sold for a profit

Fractional or fragmented property investment: which is better?

Neither is inherently better than the other and which to opt for depends on an investor's individual investment goals and risk tolerance.

Fractional property investment may come with the additional risk that the investor's name does not appear on any titles.

If the entity holding the investment ceases to exist, it may be difficult to recover individual investments.

However, fractional investing may allow investors to enter the market with a smaller amount than a fragmented investment with other stakeholders. 

See Also: Should you buy a property with family or friends?

How is it different to a timeshare?

Timeshares were big in the 1990s and it could be easy to mistake fragmented property investing as similar to buying into a timeshare. However, they are very different.

Fragmented (or fractional) property investment means you buy a real share of the physical property and title, offering potential capital growth and a share of any rental income.

A timeshare is buying the right to use a property for a set time, offering no equity, share of capital growth, or income.

The first is a form of real estate investment; the other is buying access to an ongoing holiday booking that often comes with ownership-like fees. 

Can I get a home loan for a fragmented property?

Many mortgage lenders' minimum loan amounts can be anywhere from $20,000 to $100,000 and generally require a land title to change hands, among other lending criteria.

While some lenders offer shared equity loans, fragmented ownership arrangements are generally not eligible for traditional home loans which are typically secured against the title for the entire property.

Fragmented investments may require alternative financing such as through unsecured personal loans.

Conversely, fractional investors may be offered specialist finance products through the platform's finance partners.

Fragmented & Fractional Property Investing Platforms Compared

Let's compare the four main players in the Australian market: BrickX, Assetora, ticX, and Bricklet.

Fractional platforms

The first two BrickX and Assetora have fractional investment models where investors essentially purchase units in a managed property investment portfolio. They also share in the fees associated with owning and maintaining properties. (See fees and charges schedules below.)

Fragmented platforms

TicX and Bricklet facilitate fragmented ownership models where investors' names appear on the titles of the properties they purchase.

TicX

TicX (with the 'tic' standing for 'Tenants in Common') sees real estate agents list available properties on the platform's website where buyers can purchase a share of a property and be added its title with other owners (generally around two to six for a single residential property).

All co-owners sign a tenants in common deed which sets out legal rights and responsibilities. When an owner wants to sell, a new buyer must opt in to the same deed.

Bricklet 

Bricklet allows an eligible owner occupier with a low deposit to purchase a home to live in, where the property is also co-owned by an investor who funds a smaller stake (a 'bricklet') in the property.

The property owner pays their mortgage plus an 'occupancy fee' to the investor and can have the option to buy them out later. Bricklet partners with lenders to finance the ownership/investment model.

So, let's talk money, comparing the various entities' fee structures  - with information correct at time of writing in December 2025.

Is fractional or fragmented property investment worth it?

This is a broad question. It can depend on whether you invest in fractional or fragmented property and your own personal circumstances and goals. However, experts agree that any successful property investment involves research, research, research.

Consider the fees

Founder of Women & Wealth Billie Christofi told Savings.com.au these types of investments could offer a foot in the door into the property market, but investors need to consider the associated charges.

“One thing to be wary of are the fees associated with the organisation you're purchasing through. This, combined with a higher interest rate, can potentially eat into a big chunk of your capital gain."

Consider the returns

Returns in fractional or fragmented property investment come from:

• rental income
• capital growth upon selling

Rental yields vary considerably and correlate with the type and quality of property you are invested in. Be sure to also take into account the fees you will have to pay to access any type of return and whether it stacks up.

To achieve healthy capital growth, investing in property can be a longer-term proposition so ask yourself whether you are prepared to hold onto your investment for a longer period to give you a better chance of maximising your returns.   

Consider the types of property

Director of Unicorn Buyers Agents Daniel Sofo says potential investors will need to do their due diligence into what properties they invest in.

“After investigation, I do think fractional ownership can be good in theory and worthwhile considering, but only if the platforms offer access to quality established - or boutique new build - property rather than generic apartments.

“Avoid new generic development, which I can never recommend buying, and buyers should also understand how a middleman, such as BrickX, can sell property at or below market whilst pricing in their fees for what is not an inconsiderable amount of work.”

See also: What makes a good investment property?

Consider the liquidity or flexibility

‘Liquidity’ in investing generally refers to how easy it is to convert an asset into cash. This can be a key factor in the world of investing. Shares are generally considered a liquid asset, as it doesn’t take much effort, time, or cost to sell them.

However,

• Property is generally considered ‘illiquid’ because of the hurdles to sell it. Consider stamp duty, conveyancing fees, time on market, and so on.

• The trade-off is, historically, property has been regarded as tangible, reliable, and relatively safe investment but involves ongoing management.

With fragmented property platforms, this is nullified somewhat as the middleman often does a lot of the property management for you (for a fee of course).

With fractional investing (e.g. BrickX, Assetora), the process is aimed to be simplified even further, by ‘sharifying’ property investment. The trade-off is, however, you’re not actually a title holder, just investing in a unit trust.

In the world of fractional or fragmented property investment, liquidity and convenience may come at a price.

‘A sign of the times’

Ms Christofi said the emergence of such platforms has been driven by Australia’s high property prices.

“Property is the most common investment strategy for Australians,” she said.

“I think the introduction of fractional property reflects the importance of Australians' ability to enter the property market which can be challenging due to our relatively high property prices.

“My first investment property was purchased through a syndicate which is similar, in structure, to a fractional property platform.”

Ms Christofi said there could also be a ‘strength in numbers’ type of strategy at play.

“These types of platforms allow investors to enter the property market without needing to save up for an entire deposit or outlay setup costs,” she said.

“Purchasing property through a group environment can also mitigate one's fear about entering the market for the first time.”

1. Savings.com.au's two cents

Fractional or fragmented property investment has aimed to make investing in Australian property easier in two ways.

First, with Australia’s high property prices, it breaks down properties into more bite-sized chunks. And second, it aims to make the hurdles of property transactions easier, while also increasing the ‘liquidity’ of property investing.

However, there’s also a few considerations. First is to consider the fees and the performance. The platform may be convenient, but the fees could be high enough - especially if you have a loan for the investment as well - to outweigh the gains made on the property, at least in the early years.

Second is the market. Like any investment, it comes with risks. While property is seen as ‘safe’, this could change at any time.

And third, consider whether the platform actually allows you to hold official ownership in the property i.e. have a land title. While having a land title means you’re actually a property holder, not having one could make your investment more akin to buying and selling shares.

Overall, fractional or fragmented property investing could be worth it for some - just make sure you research, and be aware that convenience often comes at a price.