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Fractional ownership: Giving smart investment as a wedding gift

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Traditionally, gold, cash, car, etc were considered the best gifts for newly married couples that could help them give a start to their married life with much more security. However, now it is worth delving into new gifting options that can comprehend their utility, yield benefits as well as ensure an increase in the value of that asset as time passes.

Fractional ownership: Giving smart investment as a wedding gift
Every parent wants to give their child a secure future and thinks of gifting them with the best that they will cherish forever. However, the generation and their perspective towards life are changing. Gone are the days when newly marrieds were equipped with more household wares, electronics, kitchen wares, etc as wedding gifts. They are becoming self-reliant when it comes to organizing the wedding event or starting the new chapter of their life with a new set of experiences.
Further with limitations on wedding gatherings, people have understood the importance of channelizing their savings into other valuable assets. Traditionally, gold, cash, car, etc were considered the best gifts for newly married couples that could help them give a start to their married life with much more security. However, now it is worth delving into new gifting options that can comprehend their utility, yield benefits as well as ensure an increase in the value of that asset as time passes.
Evolution of wedding gifting
Being a centuries-old tradition, Gold is considered an essential part of Indian customs. It is also considered important from an economic point of view that appreciates with time and is liquid that can be easily converted into cash, whenever required. The other most common gifting option in weddings is cash that allows the couple to spend it as per their interest. Even being liquid in nature, cash is an unproductive asset because it always shows the temptation to spend it on wants and desire.
As the time passed, parents started looking for other gifting options such as cars and residential properties. However, it is imperative to understand that the cost of personal vehicles depreciates as soon as they are driven out of showrooms. Additionally, a car comes with a monthly expense of fuel, maintenance and other costs that do not yield any tangible benefit. Similarly, residential properties that parents have started gifting to newlyweds makes sense only for personal use. Otherwise, residential rental yields are the lowest in India that does not offer any tangible benefit to the couple.
Fractional ownership: A gift with security and benefits
As the new generation and urban millennials have become self-reliant, they struggle to build the life they want in which every penny counts. They have understood the idea of generating passive income or investment that can yield long-term profits to them. Considering the changing phase of marriages, fractional ownership in commercial real estate has become one of the safest ways to secure the future than other commodities or assets.
The model of fractional ownership is designed to divide the cost of a premium commercial property into smaller fractions that make it easy for the investors to build their portfolios. Apart from this, it offers average rental yield and annual capital appreciation that can provide an avenue of passive income for couples starting their married life.
Summing up
Today’s married couples can make cash or buy themselves gold, car or other assets. However, investing in a commercial property is not a cakewalk. Therefore, giving fractional ownership in an A grade pre-leased commercial property as a wedding gift can be ideal for making their future safe.
The author, Varun Mohan, is founder at Definite. The views expressed are personal
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