How to invest

How does Jasper compare to REITs?

How does Jasper compare to REITs?

REIT's and Jasper have some similarities, they both offer diversification away from traditional asset classes, they both pool capital from multiple investors to lower the barrier to entry and improve diversification, and they both improve liquidity compared to direct property ownership. However, there are also some important differences.

What is Jasper?

Jasper is a digital investment platform. It provides all investors with the opportunity to own institutional-grade commercial real estate using a fully digitised on-boarding, accreditation and subscription process. Jasper also plans on providing a secondary market, allowing investors the potential to sell their equity to other investors, giving unprecedented liquidity in a traditionally illiquid asset class.

What is a public REIT?

A public REIT (which stands for ‘real estate investment trust’) is a publicly listed company that either owns, operates, or finances income-producing property. Since investing in real estate is expensive, a REIT allows investors to pool their money together to fund large real estate investments. REIT managers then take that money and decide which properties to invest in. If the properties yield a return, every investor who owns shares in the REIT will receive a share of the profits. A REIT can be thought of as similar to a mutual fund for real estate, because several investors buy shares and contribute money into a pool, and professional managers decide how to invest it.

Similarities between Jasper & REITs:

1. Diversification

When investing in commercial real estate traditionally, most investors only have enough capital to put funds into one single property. However, when investing in a REIT or with Jasper, investors put small amounts of money into several different real estate investments. This diversification method may lead investors to reap the returns on several different investments rather than only relying on one single property.

2. Pooling capital

REITs and Jasper both offer investors the opportunity to pool capital from multiple investors to lower the barrier to entry and improve diversification. Jasper’s target minimum investment amount in the future will be around $1,000, meaning an individual at any stage in their investing career – from beginner to institutional – can invest.

3. Liquidity

Investing in commercial real estate traditionally is fairly illiquid in that it cannot be easily sold or exchanged for cash. When an investor chooses to sell a property, they may wait several months until the deal closes. On the flip side, both Jasper and REITs offer improved liquidity by offering investors the ability to exit their positions before the end of a projected hold period.

Advantages to investing with Jasper vs. public REITs

Although Jasper and REITs do share some similarities, Jasper has several key advantages when compared to REITs:

1. Asset level control

With Jasper, investors can select the markets, locations, and properties they prefer and have complete control on a deal-by-deal basis. REIT investors have no choice over the investments made by the REIT managers, and there is less transparency about the underlying investment properties. This allows investors to create a unique and personalised portfolio tailored to their risk and return preferences.

2. Improved transparency

Although REITs have strict reporting guidelines, most investors know very little about the properties in a REIT portfolio or the fees applied at the property level. Jasper provides investors with absolute clarity on every property they invest in and the associated fees.

3. Lower volatility

Public REIT prices are moving in near lockstep with equity markets, meaning they are subject to the same broader market volatility. Direct property ownership through Jasper, on the other hand, offers significantly lower volatility than equity markets and is more closely tied to the performance of the underlying asset.

Key takeaways

The Jasper model combines the best qualities of direct property ownership and REITs to create a new, technology-driven method to invest in commercial real estate. Whether you are in the early stages of your investment career or are an experienced, institutional-level investor, Jasper seeks to provide investors with market-leading returns through lower fees, unique opportunities, and full transparency.

Ready to become an investor with Jasper? Click here to get started.

Vernon Sequeira - Jasper

Vernon Sequeira

Investment Manager

Posted on 22 Oct 2019

Invest with us

Our expertise in acquiring and managing real estate assets, combined with our proprietary technology, helps us generate strong risk-adjusted returns for a diverse range of investors.

Private Investors - Jasper Property

We make commercial real estate investment accessible to private investors in a simple and transparent way.

We provide private investors with curated opportunities, low minimums, low fees, transparent reporting and improved liquidity. All available through our secure online platform.

We manage the entire investment process for you from start to finish; you sit back and enjoy direct commercial property ownership and the passive income it can provide.

Read Important Disclosures

 Institutional Investors - Jasper Property

A strategic partner for institutional capital

Jasper is an experienced operating partner for family office and institutional investors wanting access to high-conviction real estate strategies across Australia and New Zealand. We co-invest alongside our partners in each joint venture.

We are proud of our track record and relationships with some of the biggest names in real estate, including Blackstone.

Financial Advisors - Jasper Property

Partner with us to unlock the value of commercial real estate for your clients

We make it easy for you to add commercial property investments to your clients’ portfolio mix. Contact us today to find out more.

Important Disclosures

Liquidity Not Guaranteed: Jasper offers secondary market functionality on its platform, however, there is no guarantee that you will be able to exit your investments on the secondary market or at what price an exit (if any) will be achieved.

Performance Not Guaranteed: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this website will be profitable, or equal any corresponding indicated historical performance level(s).

Risk of Loss: Investing in commercial real estate involves a high degree of risk and may result in partial or total loss of your investment. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish.

No Personal Advice: Jasper does not provide personal advice or recommendations. The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. It is important for you to consider these matters and to seek appropriate legal, tax, and other professional advice before making a decision.

Wholesale Offers: Jasper currently only offers financial products to wholesale (or other qualifying) investors. Jasper does not currently hold a Managed Investment Scheme (MIS) license.

FSPR No. 692011. Information on this page is based on information available to us as of the date of posting and we do not represent that it is accurate, complete or up to date.