Lotly Investing Review

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Real estate has been a popular investment option for years. However, as the cost of homes skyrocket across Canada, many Canadians struggle to afford a single home to live in. This means that for the majority of Canadians, the idea of owning a second investment property is a pipe dream. 

According to statista.com, the average cost of a home in Canada in 2022 was $703,875.00. While prices are expected to drop slightly more through early 2023, it’s unlikely it’ll go down to pre-pandemic levels. This pricing puts the vast majority of homes out of reach for many Canadians, making the real estate market inaccessible as an investment option, at least in the traditional method. 

However, real estate investing with Lotly is a feel-good solution that makes investing accessible in today’s current market.

Lotly Investing Review home

What is Lotly and how does it work?

Lotly is a Canadian business driven to help Canadians purchase their dream home and/or invest in real estate with the goal of building wealth for the future for both parties. 

So, how does it work?

Lotly’s in-house data science team identifies properties and areas that have the best chance of growing in value. They then support the down payments of prime homebuyers with the Lotly Fund, which is composed of investments by retail investors who have purchased units within it.

Homebuyers need a minimum of 5% of the total purchase price to put towards the down payment, with the investment fund covering the rest to reach a 20% down payment. Additionally, homebuyers will need about 3% on top of that for closing costs like taxes and legal fees. 

The investors’ money will then own a share of owner-occupied properties without having to worry about any of the traditional real estate hassles like a mortgage or property taxes. Over time, as the properties appreciate in value, so does the value of the investor’s stake in the property. In other words, whenever a home in the fund is sold or refinanced, investors will be paid out their original investment share in that home plus their share of the price change.  

Lotly Investing review signup

How to Sign Up to Invest with Lotly  

Ready to sign up and invest with Lotly? The process is very streamlined meaning it’s quick and easy to get started. 

You can sign up on their website. Once you have your account authorized you will be asked if you are interested in buying a home or investing. Select “I’m an investor.” 

Next, you will be prompted to set up your investor profile. You will be asked for basic personal information (name, address, etc.), financial information, and investment style.

If you are eligible to invest with Lotly, you will be asked to reserve fund units and provide additional information that is legally required to invest in Canadian real estate.

Everything can be done online and should only take a few minutes. You will need to speak with Lotly’s securities dealer, Meadowbank Asset Management, as part of the transaction. Meadowbank helps make sure the investment is right for you.

Once you are cleared, and your investment is complete, you can view your holdings in the dashboard of the Lotly website.

The team behind Lotly

Lotly was founded by two Canadians who each had their own difficulties regarding the real estate market. 

Martyna, a real estate investor, saw first-hand through her day-to-day work just how difficult it has become for Canadian renters to become homeowners.  

Grace, on the other hand, was a potential homebuyer. As the market prices soared, Grace quickly realized just how difficult it had become for many Canadians to put together the money for a down payment.

Together, with Martyna’s background in real estate and building software products and Grace’s background in data science, the two created Lotly to solve the real estate problems that they had both experienced. 

Why Choose Lotly?

So, why choose Lotly? As mentioned earlier, Lotly makes real estate investing accessible to all Canadians through its investment model. This type of investing also takes away a lot of stress from typical real estate investments. As an investor, you don’t need to worry about mortgages or city taxes. Instead, you can just leave your investment and let it grow. 

Additionally, something that really makes Lotly stand out is the ‘feel good’ aspect. Sure, you are investing for your own gain, but your choice to invest with Lotly also allows a fellow Canadian to buy a home. Win-win! 

Ready to get started on your real estate investing journey? Sign up at Lotly.com/invest today!

FAQ

What is the minimum amount you can invest with Lotly?

You can get started with an investment of $1,000. This is 100 units at the price of $10/unit. 

What are the expected returns with Lotly?

Lotly projects an annual return of 15%. There’s a handy projected return calculator on their website that you can play with to get an idea of how much you can make on your investment. 

What happens if the price of the home decreases?

In the worst-case scenario, you would lose your original investment amount. However, keep in mind that Lotly places a heavy emphasis on researching properties that are expected to increase in value. Plus, your investment with the Lotly Fund is distributed across multiple homeowners, property types, and markets. The investment is diversified, not specific to a single property or home. 

What are the fees to invest with Lotly?

Lotly investors pay a one-time 2% initiation fee and a 0.5% annual fee. Management fees are included in the unit price and cover the facilitation of each home purchase, management and compliance of the Lotly Fund, and maintaining Lotly assets. 

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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