How transactional wallets are changing the face of real estate investing

The property investment landscape is set for a shake-up in the form of transactional wallets, and global real estate platform Wealth Migrate is behind the big change. 

Transactional wallets are not new — they have been available on share trading platforms for some time — but real estate investors will now be able to enjoy their ease of use and have access to compound investing.

The wallet is essentially your cash account within the system. A share pays a dividend, and it shows up as cash in your wallet. You can immediately invest that money into another share purchase. No bank transfers or transfer fees, just a simple swipe of the finger or click of the mouse.

Those who favour real estate as an investment option have a two main arguments to support their opinion: First, property is an asset that the average investor can attain, using gearing to leverage (that is getting a mortgage to cover a large part of the purchase price) and, second, as a real tangible asset, it is not as susceptible to emotional decisions and fluctuations like stocks and real estate investment trusts (Reits).

But real estate investors have not been able to use compound investment (taking returns from an investment and immediately reinvesting them so they also start earning returns), the ease of investment has also been lacking.    

Compound investment has not been challenging because it is difficult to take a monthly rental profit and immediately put it back into another property — the investor may need to wait a while to accumulate enough money for a new deposit on another property. 

This contrasts strongly with stocks or interest, where investors can take a small, regular payment (dividend or interest) and immediately invest it into another similar-type investment.

The ease of investment argument is similar. Taking a dividend on a stock trading platform and immediately buying another share is easy. This has not been the case with real estate — deals are large and clunky, with a lot of admin and hassle involved.

Wealth Migrate’s transactional account, alongside its offering to investors to own a direct share in a property without having to invest the full purchase price of the building, now brings simple compound investing to the global real estate market. 

Invest, earn income from your property, and immediately reinvest the regular returns into your next property, thereby growing your global real estate portfolio.

In this way, transactional wallets, which make compound investing simple, are changing the face of real estate investing.