The profit on purchase is a number indicating the difference between the asset purchase price and a market valuation (Fair Market Value or FMV). When you buy an asset or fractions of an asset with a very good price (under the official market valuation level), you make instant profit (a one-time upside) on purchase simply because you own something more valuable than what you paid for it. The real-estate assets offered by MetaWealth™ are always falling under market valuation so that our token holders (investors) can benefit from an immediate profit on purchase in addition to the future rental income.
Some individual real estate investors are actively looking for deals featuring a sizable profit on purchase potential for the purposes of flipping property (buying to resell quickly). Here at MetaWealth™ we recommend holding any asset for at least 5 years, ideally, in order to fully benefit from its potential (asset appreciation and rental income).
Still, there is no doubt that buying property below market value can provide investors with a fast profit on purchase that can be rewarding. In theory, should one decide to sell at market value quickly after their initial investment, they make a good return on investment thanks to the profit on purchase value.
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