Real estate is a lifelong investment and one that is worth the cost. But what do you do if you wish to invest but don’t have enough for the entire property? This is where fractional investment lends a solution!

What does fractional investment mean?

In simple terms, this means that you can buy a portion (or a fraction) of a property. You can cherish all the benefits of owning that part of the property without any hassle or upfront expenses.

As the property grows in value, you will also gain a fraction of the capital growth, a fraction of the rental income if a tenant stays there, and interest. The best part is that anybody (from a corporate investor to a schoolboy) can be an investor. You can gain appreciation as the property you own grows.

The more money you put in, the larger the share of the property you can own. You can buy a percentage and become a shareholder along with many other investors. You can diversify your investments and fractionally sell or trade at any time.

You are also eligible for dividends that can be calculated based on the share percentage in your possession. There are several other benefits as well and a good reason why this concept is becoming a trend in the share market.

What are the benefits of fractional investments?

You can make safe and secure investments without worrying about the budget. No matter how limited your budget is, you can make pocket-friendly investments. At the same time, you can gain benefits and interest for any minimum amount until you choose to sell the property.

This means that you will gain long-term security with consistent results owing to less volatility and no impact of inflation. If you have a tenant staying at your property, you can even view it as a source of income. It will make you an independent investor and help you break free from the monopoly.

Some people believe that it is all a matter of chance. If you decide to pool in with several investors and the property fails in the share market, you all lose as a group. This is not so, as if you choose a good real estate land, you can grow along with it!

Is it safe to fractionally invest with many others?

Yes, as many regulatory and statutory clearance checks are conducted on the investors before offering them a priority. Are the owners legitimate? Are they fit for legal ownership? Is the money invested and the property legal?

It is secure as you can be sure your rental income will be thrice more than the residential unit’s income. At any point, if you feel unsafe or you feel the market is crashing, you can sell the property. You have complete liquidity and independence to do as you wish.

You will get the upper hand as the assets are Grade-A quality. You can invest in barren land near your home, a warehouse that might flourish in the years to come, an office space, an agro farm, real estate homes, and much more. Any commercial property or residential unit can be eligible for fractional investment.

Hence, your chances of share market volatility are low and there are small interest rates for fixed deposits. If your tenants pay on time, you will get a good rental income and a stable budget for a small initial investment.

Click here if you are intrigued to dig deeper and invest fractionally to stay safe and ahead of the market.