Commercial real estate has become both accessible and profitable for the majority of Indians since the advent of fractional or shared ownership.
Even three to four years ago, most Indians did not believe the commercial property to be a viable investment, preferring instead to put their money into residential real estate. Commercial real estate (CRE), with its high selling price of tens of crores, was just out of reach for most individuals. CRE has now become both accessible and profitable for the majority of Indians, thanks to the emergence of fractional or shared ownership.
Commercial real estate, on the other hand, is a completely different ballgame, and an investor’s lack of experience could cost them money. Partnering with a fractional ownership platform that has experience navigating the CRE market is the best method to close this gap.
Fractional Ownership Platforms- Are they all the same?
For those unfamiliar with fractional ownership, it allows investors to combine their funds and jointly purchase Grade A commercial property. As an example, an office building for Rs 100 crore may now be purchased by a group of people who each contribute Rs 25 lakh or more. This has been made feasible by fractional property platforms, which identify profitable properties, conduct due diligence and paperwork on them, and then bring investors together to complete the transaction. However, not all fractional corporations are created equal.
It’s crucial to remember that fractional property is still a very new idea in India, having only been established in the previous five years. In India, there are now only a few organizations that offer fractional property. The majority of these are start-ups that have seen a lucrative opportunity and are vying for a foothold in this new industry.
How to select the best fractional investment platform?
The key is to choose a firm that is already established and has the skills and connections to assist investors in obtaining the best potential bargain. Here’s how picking a reputable provider may help you get the most out of your money:
Getting the best deal
Getting the best deal is one of the most obvious ways that experience helps. While everyone with access to the Internet may learn how to find a property with a high rental yield, only a seasoned player will be able to accurately appraise the property and determine its exact price, ensuring that the investor does not overspend. This guarantees that the investor receives the finest bargain possible.
Huge profits for customers
All real estate should be seen as an investment, with a future exit strategy in mind (the only exception to this is buying a home). The investment life cycle is regarded as complete only when the investor cashes out and recoups the capital gains. Experienced firms will always take the long view and strive to maximize capital profits rather than merely rental revenue. If an investor makes a wise investment decision, he or she will eventually earn more money from capital gains on resale than from rental return, which should be considered more of a passive income.
It’s not about single transactions
Unlike many start-ups, which are focused on racking up as many transactions as possible to keep funding, an established firm that is debt-free may focus on developing a long relationship with the consumer. This involves enabling property sales, assisting customers with asset tracking, and eventually facilitating resale.
Channel partners with a long history
Needless to say, the longer a real estate company has been in business, the more powerful its industry network becomes.
Commercial real estate may be a very profitable investment if done correctly. There aren’t many Indian investors that are as knowledgeable about this sort of asset, but in such circumstances, working with a firm that has expertise with it might make all the difference. If you are looking for an ideal partner to start investing in real estate through fractional ownership, then Assetmonk may be your best option as we provide dedicated service with some of the best investment opportunities in India. Our products offer you an IRR of 14-21%.
Best Guide To Select A Trusted Fractional Ownership Company FAQ’S:
You can gain the joint ownership in a property by adding your name to the legal title of the property with the sub-registrar under whose jurisdiction the property falls.
Fast way to invest as it does not involve much paperwork, Low cost, high returns, Steady income, Portfolio diversification, etc. is some of the benefits of fractional ownership investments.
Fractional ownership is a structure in which a group of investors combine their finances to buy a property. They both possess a high-value asset in a passive capacity. This method lessens the financial burden of owning a property for a single investor while also allowing the investor to profit from the investment.