If you are born in the mid-90s or belong to a middle-class family, you certainly know the drill. A typical middle-class life includes waking up, working hard, paying the bills, getting their children married, and finally retiring to their residential property. On the other hand are the upper class who might take up the opportunity of investing in real estate or starting up a real estate business. However, to accomplish this task they may end up taking huge loans from the bank and spending their lives paying interests for the same. Whom do you want to end up as? We are not here to discourage any type of living. Every person has the right to choose the type of living he wants for the rest of his life. What we are here for is to understand the market and liquidity.
From the years 1990 to 2010, considering liberalization and globalization, many people started traveling frequently. This led them to take up investment opportunities across the globe. This concept became even more familiar and people started buying real estate properties overseas. Even the investments shifted to more advanced and high-end commercial properties such as hotels, restaurants, etc. This made commercial real estate investment one of the most sought out investment opportunities across the globe. But then came the twin year 2020 where pandemic took a toll over the health, financial, and other aspects of people’s lives.
But there is also an advantage of the pandemic: we have come closer and technology has risen. But does it have an impact on real estate? Of course! This is exactly where Fractional Property Investment comes into the frame. It is for the first time that investors can buy a high-end commercial property anywhere around the world without even worrying about the high monthly loan interests. Fractional property investment is a way to secure a commercial property by buying it in a group but with full security and tokenized share.
What is Fractional Ownership?
Fractional ownership is a type of real estate ownership where different people come together and pool their savings to buy a common commercial real estate property. The biggest advantage of fractional property ownership is that the investor doesn’t have to get burdened with huge bank interests and maintenance of the property. All the worries are looked after by the real estate company and the tenants. Fractional ownership allows a person to get the benefits of commercial real estate properties which are high-end and luxurious even without spending huge amounts of money. One can get such properties even with limited income sources and savings.
Let us take an example to understand this amazing yet new concept. Suppose there is a luxurious high-end commercial property that costs around 20 crores. Now the cost of this property is equally divided into 10 tokens of 20 lacs each. A person can buy a token or multiple tokens depending upon the amount of money he wants to invest. By doing so, the person can have access to a property that could have been owned only in imagination and with immense hardships. Another benefit of fractional property investment is the monthly rental yield that allows the person to have that allows the investor to have a stable income source.
There is no doubt that fractional property ownership is the new face and future of real estate investments that are free from any kind of boundary or nationality. Fractional Property Ownership might be a new concept in the Indian subcontinent. However, it has been a quiet old investment trend in western countries and has benefited many people there. Slowly and progressively, the new owner is also expanding its wings in India.
Key Benefits of Fractional Property Ownership
Low Ticket Size
The most important key benefit of Fractional property ownership is that the token size of the property shares is very alone and highly affordable. One can now invest in high-end luxurious properties with a limited budget. Send real estate properties to provide a stable source of income without worrying about the market fluctuations and volatility, unlike shares, Fractional Property Ownership has a huge advantage over other forms of investments where the investor can invest in an affordable asset at the desired location.
Currency Diversification
Fractional property investment across the globe allows the investor to earn currency appreciation in foreign currencies besides the rental yield. This is a great option for those who want to earn extra income besides capital appreciation and rental yields on a commercial property.
Availability
Fractional Property Investment has allowed so many people to fulfill their dream of owning commercial properties at pocket-friendly prices. One can now invest in huge properties without worrying about the volatility and in return gets assured appreciation.
Pre-Vetted Properties
Fractional Property Investment is not a scam, it undergoes a thorough observation and strict screening. Therefore, fractional property investment is completely safe and the company provides end-to-end customer-oriented support, right from the listing of the property to the booking of a token.
How Are the Investments Structured?
For every property, a Special Purpose Vehicle is made that allows working of co-ownership concept. The sole purpose of the special vehicle is to serve as a platform for new properties and assets and has no role in the operational working.
Now that we have looked at the key benefits of fractional property investment, we can ascertain that this is a great investment opportunity for every class of people irrespective of their low investment budget.
About the Author: Yield Asset
Yield Asset is one of the best commercial property investment companies that provides the best real estate investment platform. Investing in pre-leased commercial property is one of the best investments that one can rely upon.