The good news is: you can still invest in real estate without buying a whole property. Through Real Estate Investment Trusts (REITs) and fractional property investing platforms, young investors now have alternative paths into the property market—without needing a six-figure deposit.

What Is a REIT?

A Real Estate Investment Trust (REIT) is a company that owns and manages income-producing real estate. These might include shopping centres, warehouses, office buildings, apartment complexes, or healthcare facilities. Investors buy shares in the REIT, and in return, receive a portion of the rental income and capital gains.

In Australia, you can invest in REITs through:

• ASX-listed REITs (like Charter Hall, Dexus, Goodman Group)

• REIT ETFs, such as Vanguard Australian Property Securities Index ETF (VAP) or SPDR S&P/ASX 200 A-REIT ETF (SLF)

REITs trade on the stock exchange like regular shares, meaning they’re liquid, diversified, and often offer steady income through distributions.

What Is Fractional Property Investing?

Fractional property platforms let you buy small ownership stakes in individual residential properties—similar to crowdfunding. Instead of taking on a mortgage, you contribute a small amount (e.g. $100–$10,000) to co-invest in a house or apartment with others. As a fractional owner, you earn a share of the rental income and benefit from capital growth.

Australian platforms include:

• BrickX

• DomaCom

• Bricklet

These services often handle property management, maintenance, and tenanting, making it a hands-off experience—a big plus for younger, time-poor investors.

How They Compare

Feature	REITs	Fractional Property Investing
Liquidity	High – buy/sell on ASX	Low – typically longer lock-in
Minimum Investment	Low – from $50+ via ETFs	Moderate – often $100–$10,000
Diversification	High – spread across assets	Low – tied to individual properties
Income	Regular distributions	Rental income paid periodically
Capital Growth	Exposed to commercial/residential trends	Linked to single property growth
Fees	Low (ETF MERs ~0.2–0.5%)	Moderate to high – platform fees, entry/exit fees
Ownership Model	Indirect (via shares)	Fractional direct property interest

Why These Options Suit Young Investors

1. Low Entry Barriers

Both REITs and fractional platforms let you start investing in property without a deposit, mortgage, or stamp duty. That makes them far more accessible to those renting or saving for other goals.

2. Diversification

Traditional property investment involves tying up hundreds of thousands into one asset. REITs and property ETFs allow exposure to dozens of properties and sectors, reducing your concentration risk.

3. Passive Income Potential

Many REITs and fractional property models pay regular income, which can be reinvested or used to support other financial goals.

4. Flexibility

Unlike owning a home, you can buy or sell REIT shares or fractional property stakes without legal complexity or major transaction costs.

What to Watch Out For

• Market Risk: Property markets can fall, and both REITs and fractional properties are subject to broader economic cycles, tenant defaults, or interest rate shifts.

• Liquidity Constraints: Fractional property often requires holding periods (e.g. 5+ years) before you can exit. REITs are more liquid but can be volatile in short-term market swings.

• Fees: Always check management and platform fees—particularly with fractional investing, where these can be higher than traditional property costs relative to your investment size.

Final Thoughts

You don’t need to own an entire home to benefit from property investing. Whether you want the diversified, low-cost exposure of REITs or the hands-on feel of fractional ownership, there are more accessible ways than ever to gain exposure to Australia’s property market.

For the rent-generation, these tools provide a bridge between current financial reality and long-term investment goals. The key is to start small, stay consistent, and build gradually—brick by brick.