Real estate is the most prized venture for everyone, and individuals also save enough to buy the ideal home. It’s not just a huge dream, but it’s also an unreasonable and outdated way to spend your wealth. Because even though having a home may provide you with pleasure, having a commercial property will provide you with even more. Fractional ownership real estate is the latest buzz, where anyone may spend a little quantity of money to become owners of Grade-A assets.
Property investment has long been popular in India, not just for the consistent income or good returns, but also because several of India’s wealthiest individuals have had a real estate portfolio adding to their fortune throughout the years. As a result, individuals in India have always been drawn to the real estate investing industry.
It is progressively gaining popularity as a contemporary serious investment model, and companies like Myre Capital have been at the forefront of introducing the most simple and high-yielding fractional ownership models.
Nature of Fractional Investment
Fractional ownership real estate is generally a Grade-A commercial space that is acquired by a collection of people who have agreed to contribute their capital to raise sufficient property value. It mostly involves high-end commercial properties where an individual investor would receive a partial proprietorship interest. It is one of the most practical ways to invest since each investor shares the expenditures, earnings, including obligations relating to the particular property. Its nature states that;
Each owner has the right of usage of the property to their fraction of investment,
Each owner must respect the rights of other investors,
Each must consent to other investors before selling off a share or whole of their fraction.
Each individual must consent to create a Company/ Cooperative Society/ Trust and then acquire the real-estate under the unified title,
The Company/ Cooperative Society/ Trust thus formed is regulated by their related Act designated by the Government.
Given its complexities, firms like Myre Capital have come through the ranks to provide a convenient structure that allows the investors to just pool in their capital for their desired fraction of ownership in a property.
Fractional Ownership in Commercial Real Estate
The very nature of fractional ownership real estate makes it convenient for investors to own a share of high-end properties. The rise of Commercial Real Estate in recent times in India has paved the way for many investors but for some time it was only limited to High Net Worth Individuals who could invest a hefty sum of amount for a great commercial asset.
Fractional ownership has eliminated the requirement for a significant amount of money to enjoy part ownership of a home, particularly for Grade-A properties that have been previously out of reach for modest individuals. Grade-A commercial properties rented by MNCs, for commerce, warehouses, manufacturing facilities, and other IT enterprises, come within this type of Grade-A real estate that an individual can now hold fractionally.
Commercial properties also ensure a steady and high-yielding return by means of leasing out or monthly rents. An MNC will always pay rent on time, keep the property up to date, and take care of its maintenance in most situations, leaving the investors with a substantial return, and thereby safeguarding the interest of the smaller investors who have a share in the commercial property.
Though the COVID pandemic held back much of the growth of commercial real estate, the fractional real-estate in India is still managing to steadily grow, with the contribution to the real estate sector which is expected to increase by 15 per cent by 2024.
The popularity of fractional property ownership is also expected to rise in the near future because conditions for favourable grounds have already been laid. The reasons leading to such a surge are the improved need for workplace buildings, as well as increasing investment firms along with Multi-National Companies added with many other corporate organizations relocating to India.
When making any property investment, investors must consider and select a sensible and dependable investing platform. Myre Capital helps investors who are eager to invest in real estate and helps them seek and offer Grade-A commercial structures as an investment option.
Their platform has proven to be an instrumental factor in changing the face of real-estate investment across India. By qualifying, literally, anyone to invest in commercial property, they believe and act on a risk averting, an investor-oriented, transparent, and accessible business model that has significantly contributed to their success.