
New Delhi. Property has always been everyone's favorite option for investment. But, investing in expensive commercial properties is not everyone's cup of tea. If you also want to become a shareholder in an expensive property worth billions by investing just a few lakhs or thousand rupees, then there is a way for this. Nowadays, a new trend can be seen emerging rapidly in the Indian realty sector which is called partial ownership. In such a purchase of property, its investor does not have full ownership of a particular property, but has a partial share in that property.
Fractional ownership is almost like the way you can buy a stake in a company in the stock market. As far as the realty sector is concerned, through such investment options, investment options can be explored even in expensive i.e. high-value properties. This system of fractional ownership is very attractive for those small investors who want to participate in the property market despite less capital. Get complete information about how it works from property expert Pradeep Mishra.
Investing in it is quite simple.
Through fractional ownership, investors get access to the big property market, especially in commercial properties, which are difficult to buy individually. Talking about metros or big cities, the prices of properties there are often high, which is not easy for a common investor to buy. Through fractional ownership, any investor can invest by taking a stake in expensive properties. This gives them a share in the potential profit from the property, without investing a large amount. This investment model is becoming financially accessible to many people.
Fractional
ownership also provides investors with an opportunity to diversify their portfolios. Normally, investing in real estate requires investing a large amount in a single property, which increases the risk. However, under this model, investors can invest small amounts in different properties at different locations. This also spreads their risk and if the value of one property falls, it will be compensated by the other properties. This investment model is an excellent way to control risk.
Professional management is
a big advantage of this model, as investors do not have to worry about the maintenance of the property. In fractional ownership, investors avail the services of professional property management companies, which take care of the day-to-day management of the property. This is a big relief for investors who want to be free from the hassle of maintaining the property. NRI investors are also showing interest in this model, as they get an opportunity to buy property in India, without the responsibility of direct management.
Opportunities and Challenges
Fractional ownership has many advantages but it also has some challenges. The biggest challenge is liquidity. Selling a part of the property is not as easy as in the stock market. Also, there may be differences between co-owners regarding the use or management of the property. Investors should seek legal advice before entering into this model and clearly understand all the terms to avoid potential disputes. There is no doubt that fractional ownership is a new and interesting model of investment in Indian real estate which is likely to become more popular in the coming years.