Fractional investment has been a new trend making its rounds in various industries. We have always been investing in gold and various forms of real estate. But fractional investment is a new way to:

• Make safe and secure investments
• Ensure your investments are pocket-friendly
• Gain benefits no matter how minimal your amount is
• Become independent as the monopoly is removed
• Gain security for the long term with potential results

If you select your section of real estate well, you can grow along with it. Whether you are a student with five thousand bucks in your account or a professional investor with five lakhs, you can start investing!

What is this concept all about?

In India, many urban households are restricted to small plots of land. If you have an apartment, you will most likely purchase it on a loan owing to the high real estate prices.

Imagine there is a huge barren land beside your home. How can you be sure that if you invest in it today, it will reap income for you tomorrow? This is where fractional investment comes in to guarantee security for you.

A lot of investors pool in their money to jointly purchase a property - it means you own a fraction of the said property. The person who invests more gets a larger share of the land and the ones who contribute less gain land worth the money they have invested.

The rental income is given to investors as per the investments made. They gain capital appreciation when they make a sale. Try to understand it like this - you become a shareholder along with several other people for a single property.

How can you be certain it is safe?

There are several statutory and regulatory clearance checks done before offering the property to any investors. The research is done in advance to guarantee that the individuals are fit for ownership legally.

This trend has gained significant traction in various international countries including:

• The United States of America
• Singapore
• Hong Kong

And more places are yet to come. The reason for such popularity is owing to a reduced fluctuation in price. The values are less volatile and investors can gain a sense of security after investing.

Generally, the lease agreements have a fixed rental income that covers escalations due to inflation as well. This long-term foresight and periodic escalations will appeal to our modern forward-thinking investors who wish to enter a stable asset class.

What other benefits can investors expect?

Investors can be certain that they can earn a steady rental income. This income is notably three times more than any residential unit’s rental income. It is also worth noting that the income generated is stable and regular.

The liquidity of these units is quite enhanced and investors can sell at any point they wish to. They have a win-win situation as they are gaining a stable income with interest when they are invested. They keep getting this income until they sell the property on some resale platform. In both cases, they get an upper hand with a good cash inflow.

The assets are guaranteed Grade-A quality and investors can feel safe and secure that their properties are legitimate. The capital gains are added over a considerable period and the longer they stay invested, the more their overall returns are multiplied.

What kinds of properties can be fractionally invested in?

You can invest in anything for any minimal amount you possess. This includes:

• Warehouses
• Agro farms
• Factories
• Residential units or real estate homes
• Office spaces

And any commercial property depending upon your requirements. If you are looking for a long-term investment without compromising on your budget, this is the best option for you. There is no share market volatility and fixed deposits have low-interest rates.

If you wish to know more about fractional investments and where we are headed with them, click here.