REITs VS Fractional Real Estate VS Traditional Investing, Returns Compared | ft. Shiv Parekh | hBits

When we think of real estate investing, the focus often revolves around residential and commercial properties. While residential real estate remains the go-to choice for most retail investors, commercial real estate has traditionally been accessible only to those with significant capital. However, in today’s dynamic investment landscape, alternative options are reshaping portfolios and offering promising returns.One such emerging trend is fractional ownership. In this episode, we dive deep into this innovative approach to real estate investment with Shiv Parekh, the founder of hBits. Shiv is revolutionizing commercial real estate investing in India. With an AUM of ₹100 crore, hBits is helping both Indian investors and NRIs access high-quality commercial real estate opportunities.We covered in the episode:The types of alternative real estate investments available, including REITs and fractional ownership.The kind of returns investors can expect from these alternatives compared to traditional real estate investments.How much of your portfolio should ideally be allocated to alternative real estate investments.Common misconceptions surrounding fractional ownership.Timestamps0:00 - Intro0:52 - Real Estate in India3:37 - Equity vs. Real Estate Returns4:35 - Rental Yield in Commercial & Alternative Investments5:17 - What Are Alternative Real Estate Investments?7:55 - Minimum Investment in Alternative Real Estate8:10 - Returns: Alternative vs. Traditional Real Estate10:11 - IRR: Traditional vs. Fractional Ownership10:46 - Starting with Fractional Real Estate12:05 - Investment Structure for Fractional Ownership15:01 - What Is REIT?18:09 - Growth of Alternative Real Estate Platforms18:51 - Investor Profiles in Fractional Real Estate19:53 - Regulations for Fractional Ownership20:36 - Portfolio Allocation for Fractional Real Estate21:21 - Top Cities for Fractional Real Estate21:47 - Legal Requirements for Platforms22:11 - Fractional Ownership vs. REITs22:56 - Why Invest in Fractional Ownership?23:16 - Ideal Properties for Fractional Ownership24:02 - Key Legal Documents to Review24:56 - What If Fractional Ownership Fails?27:26 - Early Withdrawal from Investments28:16 - Property Selection for Fractional Ownership30:29 - Who Benefits Most from Fractional Ownership?32:13 - Misconceptions About Fractional Ownership32:47 - Can Fractional Real Estate Disrupt Markets?33:36 - Future of Fractional Real Estate34:34 - Mindset for Fractional Real Estate Investing34:50 - Fractional Ownership for Older Generations35:38 - Future of Fractional Ownership in India36:40 - Choosing the Best Real Estate InvestmentDisclaimer: This content is provided for educational and informational purposes only. The views expressed by our guests reflect their personal opinions and experiences. Our intent is not to defame or cause harm to any individual, entity, brand, or product mentioned. We aim to offer insights that empower our audience to make well-informed decisions. Viewers should consider their unique circumstances and consult with qualified financial professionals when necessary before acting on any information presented in this video.Guest Social Media:LinkedIn: https://www.linkedin.com/in/shivparek...To Know More, follow us on:YouTube: https://www.youtube.com/@PersonalFinanceTVofficialInstagram: https://www.instagram.com/personalfinancetv/LinkedIn: https://www.linkedin.com/company/personal-finance-tv/𝕏 (Twitter): https://x.com/PFTV_official