Isn’t it surprising that around 20 million US citizens have made an investment in a fractional real estate? The fractional real estate ownership lets the investors own a piece of real estate, which is of high-value.
So, who invests in this form of ownership? Any individual who wants to enjoy the benefits of real estate investments invests in this form of ownership. These benefits include mortgage interest deduction, diversification of investment portfolio, and appreciation. Well, not every individual has enough capital to buy high-end properties. This is where fractional ownership comes in the picture.
The very first reason individuals choose this form of investment is that it allows for the diversification of real estate. Various investors, who have already invested in bonds, stocks, and mutual funds, consider it a good alternative.
Another perk of fractional ownership is no hassles related to leasing, grounds maintenance, and property upkeep.
There are two major forms of fractional ownership: