Fractional Ownership - New Investment Opportunity for Retail Investors
The unique and fast growing real estate marketing concept of ‘Fractional Ownership’ has opened a new, safe, and profitable avenue of investment for retail investors in expensive A-grade office real estate, which was earlier beyond their investment capacity, observes Vinod Behl.
Earlier, the big-ticket, size, and high-risk investments were major hurdles for retail investors keen to invest in A-grade office real estate. But now, the evolving investment model of ‘fractional ownership’, is paving the way for retail investors to invest in premium office property. Under this model, ownership of the high value property is shared by multiple investors. This helps make the ticket size low, making property affordable and least risky for retail investors. With an investment of about ten lakhs, they can partly own expensive office real estate that costs over a crore. This way, they can reap good benefits of their investment in terms of high property investment, with attractive and stable rental returns.
Earlier, the big-ticket, size, and high-risk investments were major hurdles for retail investors keen to invest in A-grade office real estate. But now, the evolving investment model of ‘fractional ownership’, is paving the way for retail investors to invest in premium office property. Under this model, ownership of the high value property is shared by multiple investors. This helps make the ticket size low, making property affordable and least risky for retail investors. With an investment of about ten lakhs, they can partly own expensive office real estate that costs over a crore. This way, they can reap good benefits of their investment in terms of high property investment, with attractive and stable rental returns.
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NBM&CW February 2021
