Fractional ownership of real estate

Fractional ownership of real estate refers to a type of ownership where people pool their funds in order to own a share or fraction of a property. Instead of owning the entire property outright, each owner holds a percentage interest in the real estate. This enables smaller investors to access real estate as an asset class and share the benefits and responsibilities of ownership (such as maintenance, taxes and use of the property) but also enjoy any capital gains and rental income from the property. Fractional ownership can take different forms, for example time-share, or equity sharing which is typically via a fund or a token. Fractional ownership can also provide several benefits, such as lower costs and greater access to high-end properties and can allow owners to diversify their real estate investments without having to commit to a large financial outlay for a single property. The most common form of fractional real estate ownership is via real estate investment trusts (REITs) whi…