Are you also dreaming of buying a luxurious holiday home at a picturesque destination in India but afraid of hefty property prices? The solution to your problem lies in the ‘Fractional Ownership’. Wondering what is that? How does it work? Fret not, in this blog, we will tell you everything about fractional ownership and how it will benefit you while buying a holiday home in India. Firstly, let’s start by understanding the phenomenon of fractional ownership.
What is Fractional Ownership?
Fractional ownership is an emerging concept wherein groups of investors pool in their funds to purchase a high-value real estate unit and share passive ownership of that property. This method simply divides the entire expense of a luxurious property into multiple fractions, allowing millennials to participate in new opportunities and get to own at least some part of their dream property.
Now, let’s talk about the advantages of fractional ownership for holiday homes or a second home in India.
Benefits Of Fractional Ownership For Holiday Home Investment
Fractional ownership is one of the best ways to own a high-end vacation property without actually buying it completely. Ownership of a holiday home should be more about end-use than investment purpose.
The biggest problem with buying luxurious holiday homes or second homes in India for an aspirational middle class is that it’s a lot of money parked in an asset with very little ROI. Although investing in an expensive holiday home might sound classy, it isn’t considered as a best decision unless you are uber rich. And that’s where fractional ownership comes into play.
Having said that, here are some of the most common benefits of investing in holiday homes through fractional ownership.
- Affordability: When it comes to buying an expensive property, one of the significant advantages of using fractional ownership is its affordability. It makes owning a luxurious holiday home accessible for all. By sharing the property’s purchase and maintenance costs, investors can access high-end vacation properties that might have been otherwise financially out of their reach.
- Limited Responsibilities: Fractional investors can enjoy the perks of owning a high-priced property without the stress of managing it. As the burden of maintenance, repairs, and other management tasks is handled by a professional team, investors can solely focus on their vacation experience.
- Diversification: Another benefit of using fractional ownership is portfolio diversification. The investors can diversify their real estate as well as their investment portfolio without having to spend a large amount of money in a single unit. By spreading your investment across multiple properties or locations, one can mitigate risks that come with the volatile real estate market.
- Luxury and Convenience: Vacation homes are generally considered as prime residential properties equipped with all the modern amenities, providing an enhanced holiday experience compared to standard accommodations. Additionally, the properties are often located in sought-after destinations, ensuring a memorable and convenient escape from our hectic day-to-day lives.
In order to have a long-term real estate investment, which not only reaps good rewards but also allows you to have relaxing holiday getaways with family anytime during the year, investing in luxury vacation homes through fractional ownership is the perfect choice.