SillyDonut
SillyDonut

Fractional Ownership vs Reits

I want to diversify my portfolio, it's mostly equity (90%) and sgb + bullion heavy.

I am not interested in buying a flat and no pressure from family as well.

Am considering good plot but in silicon valley it's hard to find and a khata b khata z khata is screwing me...plus nearby metro it's in 8 digit for 1400sq ft.

Recently I came to know about yours and brikitt start-up which help us buy costly flats at fractional Ownership and that too with IRR of 15%+ (yield 10%, appreciation 5%)

Should I consider this or just go with Reits like embassy etc?

20mo ago
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SwirlyNoodle
SwirlyNoodle

REITs are diversified and regulated. Fractional ownership isn't.

Stick to REITs

SwirlyTaco
SwirlyTaco

Strataprop is a good option on the fractional ownership side.

You may be able to defer taxes on fraction ownership to the time of cash-out. With REITs you'll get taxed at the marginal rate.

SillyDonut
SillyDonut
TCS20mo

How can I defer tax while exit, plz explain?

SwirlyTaco
SwirlyTaco

You can't defer them at exit. You have to pay them at exit. You'll be able to defer them till the exit.

In the REIT your dividends are taxed annually.

SnoozyWaffle
SnoozyWaffle

Buy atleast a flat for living....

FluffyCupcake
FluffyCupcake
Amazon20mo

Similar underlying asset, just one is regulated other isn’t. Define your risk profile and you get the answer.

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by SillyDonutTCS

House at South Goa

Going to invest in a flat through fractional ownership route. (IRR -18%-25%)

Sebi also approved the regulation for it after reits.

Any last minute ip or suggestions?

PS - I don't want to buy a flat in metro and live in any metro for n...