MicroProperties is a place you can share real estate investments with others as we are cutting down S$m properties into S$5,000 lots; making investment properties more affordable and instantly accessible. We aim to provide a unique approach to how properties market exposure can be had more efficiently with a one-stop platform that makes an ease for tracking your portfolio of residential investments and be able to connect with others on your property journey.
MicroProperties charges 1% p.a. of the property value for administering the platform and servicing of assets. This charge is inclusive of all professional services:
MicroProperties is owned by Northwaters Capital Pte Ltd (NCPL). NCPL holds a capital market services license supervised by Monetary Authority of Singapore (License number: CMS100813)
You may purchase up to a maximum limit of 30% on a single property, but not limiting the number of properties you can purchase on our platform. For accredited investors, the minimum deposit is $100,000 with investment lot size starting from $5,000.
Only Accredited Investors by MAS and/or those who have the intent to transact not less than $S 200,000 (or its equivalent in foreign currencies) in consideration are eligible. If in doubt, kindly reach out to us at: email@example.com.
Yes, in order for us to efficiently fulfill your desired property purchases, we will require you to make a deposit to your account with MicroProperties before placing an order. Once deposited, you may apply your funds to place orders in multiple properties each with value up to your credit balance. For information on how to make that deposit, kindly register for an account and follow the steps via your user account -> credit balance -> deposit funds.
The funds deposited are held in escrow under custody of Wintrust Asia Pacific Pte Ltd (Company Registration No. 200607046K) an independent trustee licensed by MAS. Funds are only permitted to exit the escrow for the limited purposes of fulfilling your property purchase orders or withdrawal requests. This facility is offered for your enhanced safety that your funds prior to any property purchase is kept remote from MicroProperties and always under professional and independent oversight. You may withdraw from your account at anytime and the funds will be wired to your designated bank account within 3 working days.
Funds deposited under the escrow account are not subjected to any bank interest or bank charges.
Once your funds are cleared with the escrow agent, you may place your purchase order for as many properties as you wish, up to your credit balance shown on your user account. (ie. You may place 5 or more $100,000 purchase orders on different properties with a $100,000 credit balance. Orders are filled as first completed and the remaining cancelled when credit balance drops below the order amount.) You can manage all your current orders in your account dashboard. Please note that all orders will be filled on a first completed basis.
Start by registering for an account and complete Know-Your-Customer (KYC) client information steps before making your first deposit.
The funds once cleared with the escrow agent will be reflected in your credit balance which you may use to apply across multiple properties purchase order.
Your purchase order in a particular property will increase its funding status and together with other users' participation will reach 100% funding completion.
At funding completion, a standalone trust vehicle will be constructed to receive the funds released from the escrow. You will notice your credit balance be deducted at this stage and unit holdings will be issued to you by the newly formed trust vs your purchase amount.
Following the legal process of property sales & purchase agreement, the particular property will be under new ownership of the trust and users who have done the same as yourselves shall become a beneficiary to these assets and are entitled to the capital appreciation as well as the cash flows of the property.
REITs in general consist of pre-selected assets from a single seller with a strong prevalence towards commercial assets such as offices, malls and warehouses. At MicroProperties, we believe in giving you the choice to pick the properties you like, and build your own portfolio on various investment themes to commence your property investment journey. We are proud to say that we are the first in Singapore to allow investors the flexibility to invest into Singapore residential properties, and our prime focus is always Local Properties for Local Users.
Your investments are always transferable to another user of the platform. You may refer to the relevant completed property page, and communicate with fellow users in private messages to initiate this process. The trust holding of the property also have a fixed tenure of 15 years. After this period, the property will be sold, and all the proceeds will be distributed to all registered unitholders. Unitholders may by a vote of majority elect to early terminate the trust after the 10th year anniversary in case of sizable capital returns.
Your investments in the shared ownership of properties are subjected to the fluctuations in price movement of the real estate market driven by greater economic conditions. Your interests held in the trust units are also prone to liquidity risk when finding a buyer in the secondary market before the trust is due for its compulsory sell-down in 15 years' time.
All properties are held in trust for the investors as beneficiaries, safeguarded by the trust deed. Neither your funds, the properties nor your holdings of trust units will ever form or become part of MicroProperties business. In the event that MicroProperties ceases to exist, your legal ownership over these assets will not be affected.
No tax advice will be given by MicroProperties and as your tax status may be different to others, we strongly encourage that you seek your own professional advice.
MicroProperties and associates will manage the properties and maintain it to a standard with the target to achieve a market competitive return.
Yes. Our team of real estate professionals will lease the property and strive to achieve a competitive rental return target.
In that scenario, the cash reserve will be used to offset any cost incurred in the interim. When the property is being rented again, we will first replenish the cash reserve to a certain threshold level before making future quarterly payments.
Yes, we are in full compliance with Singapore's tax regime.
Your investments with MicroProperties will not affect your own tax status with respect to your ABSD or First Home Buyer status so you may gain a diversified exposure to the property market while you plan for your own home ownership goals.
Your investment is close to an outright investment in a property therefore your returns are always the composition of any capital appreciation and rental income after expenses on the particular properties in your portfolio. MicroProperties believes in giving you unparalleled access to property market opportunities rather than focusing on “promised” returns.
The cash reserve is a buffer we have built-in for contingency in case the property had become untenanted to cover for expenses such as property tax, repairs, etc.
Rental received from the tenancy will increase the cash reserve while expenses & quarterly trust payments to investors will deplete it. The MicroProperties team will manage the properties with a fiscal aim to maintain this cash reserve at the 2-4% level depending on the property size. The cash reserve in whole will be returned to the investors when the trust is terminated at the end of the investment period.
The monthly valuations for all our properties are powered by UrbanZoom with their cutting edge technology in mining the real estate transaction database. Investors will receive monthly statements indicating the NAV of their investments. Independent valuation report will be done separately on an annual basis.
All trust vehicles are set up with a fixed tenure of 15 years during which the property will remain in the trust ownership. On the 15th year anniversary, the trust will terminate with a liquidation process to realise the assets; this will involve the selling of the property or a re-listing to enable a final redemption proceeds to be paid to all exiting unitholder beneficiaries determined at termination.
Part of the liquidation process in the 15th year requires the property to be sold but it may also be re-listed through the platform as a fresh listing. Unitholders who would like to keep their interest may participate in the re-listing without penalty.
If the property fails to be re-listed, it will be sold in the open market. The trust will terminate and all proceeds will be returned to unitholders.
Following your purchase, you will be issued units in a trust specifically created to hold that particular property only. Your unit holding therefore represents your interest of the property according to your investment proportion.
Your investment is not redeemable at your discretion but may be compulsorily redeemed periodically to enable your receipt of rental generated by the property.
On the 15th year anniversary of the transaction, the whole balance of your unit holdings shall be compulsorily redeemed with a return of capital.
Yes, your unit holding may be transferred and re-registered under the name of another user of the MicroProperties platform at no cost.
The trust asset will only comprise of 3 items:
The property price reflects the value of the real property asset which forms the majority of the trust’s NAV.
The trust NAV is the summation of the property price, the cost amortisation and the cash reserve.
Trust NAV = Property Price + Cost Amortisation + Cash Balance
The total amount of the stamp duties and setup cost forms part of the trust NAV as an intangible asset of the trust to be straight line depreciated over the 15 years or 180 months of trust life at roughly 1.4% per year (of your initial investment).
At any point in time, the monthly trust NAV valuation will reflect the remaining time portion of this cost amortisation.
As the trust units are transferable, a buyer of units in a subsequent transaction will pay for and the seller of units will receive for the trust units based on a trust NAV which includes the property valuation, the remaining cost amortisation and the cash value. (i.e. On Year 3, approx. 12 x 1.4% or ~16.8% of the initial investment will form part of the agreed price paid by the Buyer to the Seller; the total cost attributed to the Seller over this particular investment is approx. 3 x 1.4% or ~4.2% of the initial investment value).
Rental generated by the property will be credited to the trust cash reserve to be set off against any property related expenses (ie. property taxes, strata fee, maintenance, insurance) and the platform fee. The excess amount in the cash reserve balance over the targeted 2-4% threshold shall be paid to your designated account on a quarterly basis via compulsory redemption of units.
If you need more clarifications or have any other questions, simply complete the section on the right or drop us an email at firstname.lastname@example.org, we will get back to you as soon as possible.