Making ‘Luxury’ Affordable and Economical
A real success story in Realty
We all have often heard the saying “opportunity in disguise”; COVID 19 Pandemic is one such example! Amid global economic slowdowns and lockdowns, Indian real estate saw unprecedented boom. It was immediately after the first unlock phase that real estate veterans witnessed huge surge in demand for holiday homes and second homes.
To help their clients in getting good deals and to deliver as per the market nerve, two seasoned real estate experts – Rajeev Ranjan and Vishal Sahni, came up with an idea of tapping the potential in this vertical through organized realty solution. Both Rajeev and Vishal have collective real estate experience of more than 40 years and have proven their mettle in developing and managing vast Sales & Business Development teams for many brands and start-ups pan India and abroad in Countries like Dubai, Singapore, Bangkok,UAE etc. Their client base is very diverse ranging from HNI’s and big-ticket size investors to millennials who are very optimistic for real estate investments.
Rajeev and Vishal saw potential in the unorganized luxury holiday homes property as many people want to invest and experience the luxury of their own holiday homes but high property price, limited usage, property maintenance issues and problems in liquidation when required have made this vertical very niche. So, to solve all these issues, Rajeev and Vishal founded a prop-tech platform – rvieo.com, with focused agenda of making “luxury holiday homes affordable” for every investor.
As contradictory as it may sound, both these realty experts have made investment in ‘luxurious’ holiday homes ‘affordable’ through their ‘fractional sales of property’ model. Here, one property is co-owned by eight to twelve investors via ‘Private Limited Company’ formed for this specific investment purpose. In this Company, every investor has their shareholding as per their invested amount. They all share the property cost & ownership respective to their investment, along with property usage, rental return, premium on investment, etc.
“rvieo.com” is providing end to end services right from property selection, sales & acquisition, property management and rental management to exit formalities from the investment as and when required. In their current offering of 2023, “rvieo.com” is offering the opportunity of owning your own holiday homes in the two most tourist attracting cities of India – Goa and Kasauli. In these cities, you can enjoy the beach beauty or the mountain serenity in your own holiday homes while earning rental income when not using the property personally. The investment starts from 15 Lac and buyer can enjoy annual ROI upto 12%; with 10 days annual stay in property. By 3rd Quarter of 2023 “rvieo.com” plans to offer you investment opportunity in North-East and Southern part of India like Gangtok, Darjeeling, Ooty, Kochi, etc. So, be ready to experience the luxury the most affordable way!!
Fractional sales in residential Properties
What is Fractional Sale : Fractional sales refers to the selling of partial ownership in a product, service, or asset, rather than selling it in its entirety. This allows multiple buyers to purchase a portion of the product and share in its ownership and benefits, such as income or profits.
Fractional sales in residential properties refers to the selling of partial ownership in a single residential property, such as a vacation home, instead of selling the entire property to one buyer. This allows multiple individuals to own and share in the use and benefits of the property, while also sharing costs such as maintenance and taxes. Fractional ownership in residential properties is also sometimes referred to as shared ownership or co-ownership.
There are several benefits of fractional sales in real estate :
Affordability
Fractional ownership allows individuals to invest in real estate with a smaller investment, making it more accessible to a wider range of investors.
Shared Costs and Risk
Fractional ownership allows investors to share the costs and risk associated with owning a property, such as property taxes, maintenance, and repairs.
Liquidity
Fractional ownership allows investors to sell their share of the property at any time, providing more flexibility and liquidity than traditional real estate investments.
Diversification
Fractional ownership allows investors to diversify their investment portfolio by owning a share of multiple properties, rather than investing all their money in one property.
Flexibility
Fractional ownership allows investors to use the property for a certain period of time each year, and also allows them to share the responsibility of maintaining the property.
Responsible Investing
Fractional ownership allows investors to invest in properties with environmental and social benefits.
Professional Management
Fractional ownership platforms often provide professional management, which can help to take care of the property and also to provide financial and performance reports.
Efficient Transactions
Fractional ownership platforms use technology to streamline the buying and selling process and provide real-time updates on the performance of properties, making the process more efficient and transparent.
Why choose rvieo.com to buy second home
Inclusivity : The platform values making real estate investing accessible to a wide range of investors, regardless of their financial means or level of experience.
Transparency : The platform values providing clear and accurate information about properties and investment opportunities to help investors make informed decisions.
Efficiency : The platform values using technology to streamline the buying and selling process and provide real-time updates on the performance of properties.
Community : The platform values creating a community of like-minded investors and providing educational resources to help them navigate the process of fractional ownership.
Responsible Investing : The platform values promoting responsible investing by providing information about the environmental and social impact of the properties.
Innovation : The platform values constantly seeking new ways to improve and innovate its products and services to meet its customers needs.
Customer Service : The platform values providing excellent customer service, promptly addressing any issues and concerns.
Compliance : The platform values adhering to all legal and regulatory requirements and maintaining the highest standards of integrity and ethics.
The investment process in fractional sales in real estate typically involves the following steps:
Research : The investor researches different properties and investment opportunities available on the fractional ownership platform. This may include reviewing property details, financial information, and performance data.
Selection : The investor selects a property or properties that align with their investment goals and risk tolerance.
Due Diligence : The investor conducts due diligence on the selected property or properties, which may include reviewing legal documents, inspecting the property, and consulting with professionals such as real estate agents or attorneys.
Purchase : The investor completes the purchase of their fractional ownership share. This may involve signing a purchase agreement and transferring funds to the platform or the property’s owner.
Management : The investor manages their fractional ownership share, which may include scheduling use of the property, tracking rental income, and paying expenses.
Exit : The investor can sell their fractional ownership share at any time. The platform will facilitate the transaction and will take care of any legal and regulatory requirements.
Frequently Asked Questions about Fractional Sales in residential property
Fractional ownership is a type of shared ownership in which multiple parties share ownership of a property, such as a vacation home. Each owner holds a fractional interest in the property and has the right to use it for a specified period of time.
Fractional ownership works by dividing the ownership of a property into smaller, more affordable portions. Each owner holds a fractional interest in the property and is responsible for paying a portion of the expenses associated with ownership, such as maintenance, taxes, and insurance.
Fractional ownership offers several benefits, including reduced upfront costs, shared expenses, and the ability to enjoy a property that may otherwise be unaffordable. Additionally, fractional ownership allows owners to enjoy a property for a specified period of time, while also retaining the ability to sell their fractional interest if desired.
Some of the drawbacks of fractional ownership include the possibility of disputes between owners, the need to adhere to shared use and maintenance schedules, and limitations on the use of the property during peak periods. Additionally, fractional ownership may also have restrictions on the ability to sell the fractional interest without the consent of the other owners.
The value of a fractional interest in real estate is typically determined based on a variety of factors, including the value of the property, the ownership structure, and any restrictions on use or transfer of the fractional interest.
Fractional ownership can be a good investment for some individuals, as it allows for shared ownership of a property that may be more expensive to purchase outright. However, it is important to carefully consider the terms and conditions of the fractional ownership agreement and to understand the risks and benefits before making a decision.