Property ownership is recognized as one of the most reliable, long-term investments among the endless options available to investors today. In addition to offering good investment returns, it generates wealth through asset appreciation, land scarcity, and high demand. Asset ownership contributes to financial stability. Over the last few years, however, the ownership of assets has been radically changing as business models are continuously shifting.
What is Fractional Ownership?
When a group of investors club in their money to acquire the ownership over a high value asset, which individually couldn’t have been achievable, is called Fractional Ownership.
The high price of commercial real estate discourages many Indians from investing in them. They tend to focus instead on residential properties. But now due to fractional ownership, investors will be able to gain access to commercial real estate (CRE).
Imagine there is an institution that has leased one of the premium commercial buildings for Rs 50 crore, which generates good cash flow. A fractional ownership program makes it possible to do that. This method divides the asset value of Rs 50 crore into fractions or shares that represent equity and debt of the underlying asset.
Fractional Ownership and Commercial Real Estate
Due to the increasing number of fractional owners of commercial real estate in India, it is predicted that the CRE market will increase by 13 to 16 percent in the next five years. There are several factors that could be contributing to this expected boom, including an increase in demand for office space, a rise in institutional investment, and substantial foreign investment in a number of trade projects. This all contributes to a potential for strong capital appreciation.
Its Effect on the Liquidity in Real Estate
An asset’s liquidity can be defined as the process of converting it into cash without affecting its market value. The concept of liquidity is very essential when investing.
Now, with Fractional Ownership, Commercial Real Estates can be easily liquidated by the part owner. So for instance, if one of the investor’s wants to sell their share of the property, they can easily sell it away to another ready investor.
The process of Investing in Fractional Ownership
The current Fractional Ownership scenario is quickly growing in India and as it is in its early stages, only a few companies like OwnersTown are offering you the opportunity to own a high value asset and become a Fractional Ownership. Quite a few of them are startups that are led by experienced investors and skilled professionals in the area.
The best way to ensure that you invest right, is to do your research and identify the company with experienced professionals having a strong chain of investors with the best investment opportunities.
We know how important this first step of investing in Fractional Ownership is, hence we have the best team who are experienced in this area to help investors have a smoother investment journey.
Acquire the best deal
There are quite a few high yielding property sites online but determining the property that is right for an investor and at the right price can be a task. Determining the right price of a property is the first, most essential task and having experience in it or having an experienced person/team to help you with it is quite important.
Long term decision making
Investors must look into investment options that provide them with good and easy exit options as well. It is as essential as every other step involved in Fractional Ownership.
One must look into investments that provide them with easy exit options that ensure maximum capital gains with a high yield in the long run.
Why should one invest in it?
1.Quick investment option
Owning a property can be a very lengthy process as a lot of paperwork is involved. Experienced ones in this field suggest investing in fractional ownership as all the documents and paperwork are already available on the online websites that can be accessed from anywhere.
2.Low Cost, High Returns
Investing in a high value commercial property through fractional ownership is a pocket friendly investment but with high returns. Gone are the days when one would only dream of such an opportunity. The investor gets all the benefits of owning a property without having to invest a huge capital. They are also benefited with the regular rental income investors along with capital appreciation of the property.
3. Stable Income
The OwnersTown platform lists out pre-leased Grade A properties on the platform. The advantage in this for investors is that they usually house MNC tenants who approach with long lease contracts, lock-in and contractual rent escalation which makes sure that there is a steady flow of income.
4.Diversification of Portfolio
Fractional Ownership is a great opportunity to expand your portfolio by investing your capital in a variety of properties spread across various markets.
It is safe to say that investing in fractional ownership in real estate is comparatively more stable, secure and profit driven of all investments.
Investing with Owners Town
Investing in Fractional Ownership can result in being a great boost to your portfolio and has the potential to grow your invested capital by manifolds. As this is still a new process of investment, investors need an experienced and technologically capable platform to make the process hassle free and invest at the right price.
OwnersTown is a fast growing investment platform that offers fractional real estate ownership guided by a highly professional and skilled team. Our listings are put up on the platform after carefully reviewing and analysing the property and after conducting a strict and professional due diligence.
Get in touch with us today to learn more about how to invest in Fractional Ownership of Real Estate and also for any other information regarding the right type of investments for you.