Fractional commercial real estate investment risk wise is not comparable with Bank FD. Fractional investing is not monitored by Sebi and minimum investment size is Rs. 25 lacs. Generally property investment is illiquid and not every ones cup of tea. Furthermore over long term stocks gives much better return than real estate with instant liquidity.
Although an attractive proposition, several points need to be looked at. Should have discussed more on the Property Management Company and Property Management Fee collected every month(which is deducted from rent) to give a complete picture. After the deduction, in my opinion, the yields are not that different from Fixed Deposits. Deductions also include Property Tax which relatively high compared to residential projects as its a commercial one Frequency of rent renewals. As everything is managed by a property management company(PMC), they are in total control. Although tenant renewals might have happened but PMC may not increase the rental yield for investors Last , but not the least , as an investor in the Fractional Commercial Real Estate, its not that easy to sell . definitely not a single button thing.
Thank you very much for your advice. Could you differentiate between the Indian FCRE and Dubai FCRE.? Which one will be more beneficial for NRIS.? Thanks.
Would request you to cover the issue of US and Canada based NRIs who hold MF investments purchased prior to 2015 .I am able to neither view nor transact in such folios since registrars have frozen login rights and transaction rights on account of difficult FATCA compliances. What is the option for such investors? Are you locked out of your investments forever?
SEBI has already brought in the regulation in 2023. Tax you have to pay if you make money. You should be happy making money. Exit option is always there. So all risks are manageable.
Fractional commercial real estate investment risk wise is not comparable with Bank FD. Fractional investing is not monitored by Sebi and minimum investment size is Rs. 25 lacs. Generally property investment is illiquid and not every ones cup of tea. Furthermore over long term stocks gives much better return than real estate with instant liquidity.
🤔 Do banks provide loans for fractional commercial investments as they provide Home loans? Please answer...
No
Although an attractive proposition, several points need to be looked at.
Should have discussed more on the Property Management Company and Property Management Fee collected every month(which is deducted from rent) to give a complete picture. After the deduction, in my opinion, the yields are not that different from Fixed Deposits.
Deductions also include Property Tax which relatively high compared to residential projects as its a commercial one
Frequency of rent renewals. As everything is managed by a property management company(PMC), they are in total control. Although tenant renewals might have happened but PMC may not increase the rental yield for investors
Last , but not the least , as an investor in the Fractional Commercial Real Estate, its not that easy to sell . definitely not a single button thing.
very useful input Sasidhar ji, thanks
Xlent sir great keep going and serving for accumulating genuine blesses..
Excellent information on this upcoming investment opportunities coming up in growing indian economy..thank you so much for your balanced viewpoint
I believe 2023 may SEBI brought in rules for this.
And also the rental income goes to NRO account, not to NRE account. That needs an additional work to repatriate that money
Please give some examples of Fractional investments like names of companies. The minimum investment?
Thank you very much for your advice.
Could you differentiate between the Indian FCRE and Dubai FCRE.?
Which one will be more beneficial for NRIS.? Thanks.
Would request you to cover the issue of US and Canada based NRIs who hold MF investments purchased prior to 2015 .I am able to neither view nor transact in such folios since registrars have frozen login rights and transaction rights on account of difficult FATCA compliances.
What is the option for such investors? Are you locked out of your investments forever?
who regulates fractional commercial real estate
I would prefer to invest that 25 lakhs in stocks of these companies . That will make more money and also ve liquid and not require any manager
SEBI has already brought in the regulation in 2023.
Tax you have to pay if you make money. You should be happy making money.
Exit option is always there.
So all risks are manageable.
Can you pls guide through which campanies we can invest? Are those companies SEBI registered??
Ticket size is 25 lakhs
Are REITs a better option with a smaller investment though stock market fluctuation is involved??
Commercial Real Estate in the US is in doldrums with entire investment wiped out for millions of small investors. Be cautious!
This is not US fractional commercial real estate
@@NRIMoneyClinic no regulation means.. more room for scammer .. it does not matter which country..
Misguiding...investor so baised. FD for purely safety.. better to buy an nifty index than a fractional commercial.
There is no misguiding. Everything is factual
Lost alot of respect for you... Don't broker something without disclosing full risks..