Fractional ownership of home is emerging as a well known investment solution in India for some time now. Experts say it is for the reason that of the dual benefit it delivers by means of rental revenue and capital appreciation. It delivers an simple way to invest in a industrial home.
Shiv Parekh, Founder of hBits, says, “Properties get selected after in-depth research and analysis. Investors benefit from the high returns and income stability that is offered by fractional ownership of the commercial real estate.”
He additional adds, “Fractional ownership is an affordable way to own a commercial property. Fractional ownership platforms provide an opportunity for investors to come together and combine their resources to collectively own a high-value property. This creates lower entry costs for prospective investors.”
While the earnings from the stock industry are reliable on the industry sentiments and differ with industry fluctuations as seen in the present pandemic circumstance, authorities say this is not the case with fractional ownership. Fractional ownership delivers steady returns more than a longer period of time.
Fast way to invest
Owning a home initially entails a lot of paperwork and is a time-consuming method. Experts say fractional ownership platforms on the other hand make investing simpler as all the essential documents and details is currently out there on the web on the platform prepared to be accessed from anyplace.
Low price, higher returns
Industry authorities say fractional ownership is a pocket-friendly investment. It delivers investors all rewards of owning a industrial home without having the requirement of investing substantial upfront capital. Along with the typical flow of rental revenue investors also advantage from the capital appreciation of the home.
Steady revenue
Fractional ownership platforms list pre-leased Grade A properties on the platform. Parekh adds, “Grade A properties house MNC tenants who come with long lease contracts, lock-in and contractual rent-escalation which ensures a regular flow of income.”
Portfolio diversification
Fractional ownership enables the investors to select the home they want to invest in and Parekh says, “can expand their portfolio by investing in multiple properties spread across various markets and sectors.”
Market fluctuations
Experts say fractional ownership has an edge more than all other investment choices in terms of security, stability and outcome.
Parekh says, “Commercial real estate is a hard asset and the returns from it do not fluctuate with the market thus ensuring a safe and stable investment”. Moreover, the investment in fractional ownership is not tied up and authorities say investors can exit anytime essential.