How do KKOG fees work?
How do KKOG fees work?
Investing in a Cannabis Greenhouse can be expensive, and whether you have been saving up for years to get to a deposit or not, every dollar counts. So when you decide to dip your toes into the cannabis investment market, it can be disheartening when you realize just how much you may need to pay.
KKOG challenges this pattern by creating an easy and affordable approach to Cannabis property investment. Not only does the KKOG Platform reduce the time taken to make the investment from several months to a few minutes, but the cost of accessing this investment product is affordable!
So what is the KKOG fee structure?
Before you dive head-first into property investment on the KKOG Platform, it’s important you have a thorough understanding of our fee-structure.
Buy & Sell Transaction Fee of 1.75%
- When you buy Bricks, we charge a 1.75% fee on the purchase price of the Bricks.
- When you sell Bricks, we charge a 1.75% fee on the sale price of the Bricks.
Whether you hold your Bricks for 2 months or 2 years, you’ll only ever pay 1.75% of the transaction value each time you buy and sell.
There are no funds under management, performance, contribution, service, or withdrawal fees. You see? It really is simple!!!
Are there any fees relating to the property, and how do they affect me?
As an investor, you will never be hassled with any property related expenses. KKOG manages the properties on your behalf, including all related bills, strata, council tax, landlord insurance, property management, cultivation licenses etc. All expenses relating to the operating and running of the property are deducted from the gross income of the property, prior to any distributions being paid to Brick Holders. In the event that the gross income in a particular period doesn’t cover the expenses, we will pay the expenses out of the Cash Reserve. *** Please see the calculation below to get more detail. In addition, you can see a full breakdown of the forecasted costs per property on the Monthly Distributions Tab on each property.
Note: Each property has different levels of expenses and should be viewed on the monthly distributions tab within each property.
All costs relating to the property are derived from gross rental income, and Brick Holders are not required to make any further payments towards these expenses.
*Property management fee is charged in line with industry standard 6%.
**Annual audit and valuation fee is charged at $0.09 per Brick per annum
***Each property has a Cash Reserve, which is raised at the initial purchase of a property and, as it is drawn down, replenished over time from the gross income of the property. The main purpose of the Cash Reserve is to cover any unexpected expenses relating to the property or expenses over any vacant period.
What else do I need to know?
On registration to the KKOG Platform you are required to deposit a minimum of $75 into your KKOG wallet to activate your account. This includes a one-off $10 application fee to become a Member of the Platform. The $10 is credited back to you in your Digital Wallet along with the rest of your initial deposit, and made available to you to put towards your first Brick purchases. We just needed to let you know that!
You should read our Product Disclosure Statement for further details around fees.
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