What do you understand about fractional ownership? How is it different from REITs, benefits pros cons etc

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Accepted Answer

Fractional ownership involves multiple investors owning a portion of an asset, while REITs are companies that own and manage real estate properties.

Fractional ownership allows investors to own a fraction of a high-value asset, such as real estate or art, without needing to purchase the entire asset.
Investors in fractional ownership typically share in the income generated by the asset and may also benefit from potential appreciation in value.
REITs are companies that own, operate, or finance income-producing real estate across a range of property sectors. Investors buy shares in the REIT, which gives them ownership in a diversified portfolio of properties.
Fractional ownership offers more direct ownership and control over specific assets compared to REITs, which provide diversification but less control over individual properties.
Pros of fractional ownership include access to high-value assets, potential for income and appreciation, and diversification. Cons may include illiquidity and potential management issues.
Pros of REITs include diversification, professional management, and liquidity. Cons may include lack of control over specific properties and correlation with broader market trends.

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