As the cost of real estate escalates and causes shifts in realty business models, fractional ownership through a real estate investment group or trust has become popular among retail investors in recent years, for its potential to allow a play into the investment opportunity without much strain on the pocket.
Experts feel that with the recent taxation changes on the gains from REITs and InVits, fractional ownership can be a new tax-efficient way to invest in commercial real estate through these avenues which act like mutual funds.
Fractional ownership also provides greater flexibility compared to traditional property ownership. Investors can choose the amount and the length of time for they wish to hold the investment without worrying about property management, as such tasks are usually handled by the investment group or trust.
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