REIT Vs. Fractional Investment in India
REIT Vs. Fractional Investment in India
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” - Franklin D. Roosevelt
Hurray! Heart thumping news to all the Real Estate Investors.
Commercial real estate is on the rise and is out of the clutches of the pandemic, and things are coming back to their natural rhythm - revising the work-from-home culture.
Commercial real estate in India is booming despite the nationwide lockdown, and startups are diving into impeccably profitable ventures and are turning into global icons.
With the popularisation of REIT and Fractional Ownership,??the commercial shade of the real estate is set in action to secure shedloads.
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What is REIT?
Real Estate Investment Trust (REIT) is an investment entity that accumulates multiple investments in the lucrative Commercial Real Estate Industry (CREI).
REITs resemble Mutual Funds and are the best alternative to Real Estate Investments, bypassing the need for owning a property.
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What is Fractional Real Estate Investment?
Fractional Real Estate Investment is a real estate investment method in which you get to invest a part of the property's value and claim fractional ownership.
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The major advantage of this method is that you can choose properties you are willing to invest in and the portion of your investment.
The difference between REIT and Fractional Real Estate Investment:
Here are a few important differences between fractional Investment vs. REIT:
Monitoring: REIT is monitored by SEBI, unlike Fraction Investment.
Cost: REIT is lower as compared to fractional which might be in lakhs sometimes even crores.
Additional charges: In REIT there are no upfront charges, while in fractional investments, there are extra charges such as maintenance charges and brokerage charges.
ROI: In REITs, the return on investment is sustained and whereas in Fractional investments the returns may vary depending on the investments.
Have you found a commercial property which is highly potential?
Unwilling to let go of the property despite its high cost?
Then, Visit 'reit-vs-fractional-investment'??and read the blog with comprehensive information about REIT and Fractional Investment.
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