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My previous blog post I had covered new alternative investment solutions made possible by technological innovations. The next product or service that comes to mind is fractional real estate, which has advantages for market-based retail investors. It enables small investors to own tangible real estate through an alternative investment path, as the name would imply. Also in this case, money is gathered from a variety of investors to buy commercial properties that are rented out and yield returns between 8 and 12%.
Platform establishes a special purpose vehicle to collect money equal to the worth of the property. Each individual investor becomes a shareholder proportionate to their investment value after the registration is complete. Investors receive monthly or quarterly payments of the annual rental yield. When a tenant fails to pay rent or leaves the property, there is a risk.
It’s a fascinating platform. Real estate investments are becoming more transparent, inexpensive, and data-driven thanks to aasthy.com, which also deals in fractional real estate. The platform permits investments starting at Rs. 5000. By retaining a difference of margin, this platform is financing builders at the last stage of project completion at a rate just a little bit higher than they pool in the necessary cash from investors. Platform does accept collateral and also establishes a buyback agreement to protect investors’ interests.
Investors might expect gains of between 10% and 18% annually. When investing through such sites, there are always risks to consider, ranging from builder default to an unregulated industry for the time being. Maintain communication with your financial planner or advisor and make the necessary calls. We’ll keep going with this series. Keep investing and grow your money till then.
Keep sharing your feedback on the same.
About the Author :
Nitin Bhandari, a passionate & certified research analyst with over 15 years of experience in Equity Markets and founder of Heet Investment, a financial broking firm in Bengaluru. You can get in touch with him on nitin@heetinvestment.co.in