Fractional property investment is to buy a portion or a “fraction” of an investment property, and receive a "fraction" of the rental income and a "fraction" of the capital growth.
For every commercial property listed for investment, a private limited company, also known as a Special Purpose Vehicle (SPV), is created by the platform. This SPV pools in funds equivalent to the property value from investors through the listing and once done, it buys the property. This means the property registration happens between the seller and the SPV, while each individual investor becomes a shareholder in the SPV. Investors get equity and compulsory convertible debentures (CCDs) to the proportion of their investment made in the SPV.
The minimum investment value is Rs 25 lakhs. Please note that this is subject to change.
No, there is no need to visit the property in person. All required documentation will be signed digitally through a reputed digital signature provider.
Yes, there is an initial 6 month lock-in from the time property is registered. Please note that this is subject to change.
The return on investments are in the form of Debentures and are paid monthly similar to the monthly rent received on preleased property.
The return is transferred to bank account every month on a particular day.
The transfer of foreign currency by NRIs is regulated by extant RBI and FEMA guidelines.