What’s common for many young millennials and the older generations here, is that both at some point try and invest in real estate, and mostly which is restricted to residential investment in local markets. And indeed, there’s not a lot that tops real estate investments, especially in this abrupt fluctuating market.

Yet, with local or global investments, real estate prices are fairly challenging and the prices often become the reason for us backing off. And even if we do end up signing up, there’s the heavy load of property taxes, insurance, massive down payments, mortgage payments, and more than enough to worry about.

But what if I told you there’s one assuring solution to all your worries? Fractional Property Investments in recent years have seen a steep upsurge in the industries of the USA, Canada, Japan, Singapore, and so on. And with the global pandemic causing a toil in the economy, challenging most local and global markets, it also saw a recent rise in the Indian market. After all, its stable with steady and liquid returns, impressive capital gains, and most importantly is pandemic and thus, crisis-proof. So, why not?

What does Fractional Investment or Ownership in Real Estate Mean?

Fractional Ownership is when multiple unrelated investors come together and invest in a solid real estate asset, ranging from Commercial estates, residential places, co-living, second homes, hotels, and more. And depending upon one’s share, every investor enjoys a regular income of value that the asset generates.

With the infusion of Fractional Investment Real Estate, the global market has attracted more and more individuals. After all, it’s flexible, it’s lower and stable investments with high and regular returns, and overall, the sky’s the limit! Looks like Fractional Ownership in the Indian Real Estate Market is here to stay and we are all for it.

5 Reasons Why Fractional Ownership is the Future to Look Forward to!

·  Accessible for All Incomes

It’s about time we stop hearing about how LeBron James or some high net-worth individual decided to invest in newer real estate assets. With Fractional Ownership, real estate no more has to be your end-plan. Whether you are starting in your career or have come a fairly long way, you can invest in premium properties worry-free.

·  Lower Ticket Sizes and Multi-National Flexibility

Fractional Ownership has brought the flexibility in real estate we all needed. No matter the market, whether in the USA Canada or, the UAE, property investments are starting as low as $10 or 2500 AED. Thus not only can you invest anywhere across the world, but also in multiple fractional properties, wherever and however much you’d be comfortable with.

·  Your Research Gets Already Done for You

With real estate investments comes a string of requirements that become the investor’s headache later on. With real estate fractional investment, this concern is usually pre-met. These properties are usually selected only post-construction and once they’ve gone through a thorough screening and have met all the standards. These are all pre-leased and all that is required off the investors are usually their KYC documents and an online bank account to invest in.

·  High Returns with Low Risk

Your returns with fractional ownership don’t end with the regular rental yields. You also receive your share of the capital appreciation value, and as is the case for reputed real estate companies, you are likely to also enjoy a hike in rental returns up to 15% every three years. Moreover, you don’t have to wait around for your investments to mature, as they go straight to your pocket periodically, every month.

·  In for the Long Haul

Usually, with residential investments, the pertaining issue is that tenants often evacuate and in high frequency. Thus remains prominent gaps in the rental returns. Whereas when you invest in commercial spaces, that were before not very accessible, tenants here tend to stick around longer also making timely payments. They tend to make these spaces their own, decorate them as they’d like, and even are like to extend their time of leasing the property, due to the time and efforts they put in.

Conclusion

So, how does this work? Usually, for each property, a Special Purpose Vehicle (SPV) is built and is similar to setting up a new business. It is like an individual enterprise with its assets and liabilities, where these properties are owned. Investors or shareholders become partners of this SPV, whose entire purpose is to hold the property on their behalf. It’s that simple! We are certain fractional real estate investments are here to stay with the promising increase in traction it has seen just in these last two years. So, are you ready to jump aboard the train?

sharmaniti437

I am an open-minded free-spirited people person who is passionate about personal development and living life without limt.