Now own a luxury home in India's posh colonies at just Rs 10 lakh
Sebi allows citizens to buy luxury apartments for just Rs 10 lakh through FOPs.
Good news for people who want to buy luxury homes in posh colonies of various cities of the nation. Now, you can own any luxury house like the one in posh colonies of Worli, Malabar Hill in Mumbai, or Golf Links in Bengaluru or even one in DLF Golf Course Road in Gurgaon, for just Rs 10 lakh. Are you Shocked? Yes this is very much a realty now!
Capital market regulator Sebi has made this possible for citizens in India who also want to invest in luxury apartments and earn high yielding rents. According to the new guidelines and rules and regulations as notified by the market watchdog, India’s citizens can now invest as low as Rs 10 lakh in small size real estate investment trusts better known as Small and Medium Reits (SM REITs) which would in turn invest in luxury properties and give ownership rights to the investor.
Sebi allows SM REITs to invest in real estate assets of value of Rs 50 crore and above but less than Rs 500 crore. Such REITs are also known as Fractional Ownership Platforms (FOPs).
The investor can invest just Rs 10 lakh and gain ownership rights of the property in which the REIT would invest in. The ownership right will of course be shared among various such small investors. Plus, the investors will also earn high rents.
Earlier, investors had to invest a minimum of Rs 25 lakh in SM REIT but now the market regulator has lowered the minimum investment limit to Rs 10 lakh. The SM REITwill create a pool of money collected from such investors. Units will be distributed amongst them accordingly. And rent earned from properties in which these Reits would in turn invest will also be distributed amongst the investors.
The investors would also share ownership rights amongst each other.
So, now, poor small investors can also own luxury apartments although in partnership with each other through FOPs! Price of a luxury home in DLF’s super luxury project, The Camellias, situated at Golf Course Road in Gurgaon is Rs 114 crore. Rent of which is Rs 13.5 lakh per month. While that in Mumbai’s Malabar Hill can go to up to Rs 300 crore or even more.