FAQs

  • general
  • residential
  • commercial
  • debt
  • Property Share is an online marketplace that allows users to directly own completed real estate with other like-minded owners.
  • Property Share offers 3 types of opportunities:
             
    • Commercial: Completed and rent generating commercial properties at 8-10% rental yield
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    • Residential: Completed and rent generating residential properties at 3.5-4.5% rental yield
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    • Debt: Debt against completed commercial and residential properties at 10-13% interest rate
  • Investing in debt makes you a “Lender” which means you have first recourse to the underlying real estate. You receive fixed interest and principal payments that are independent of property value and rents. Even if the property is vacant, you will continue to receive interest and principal payments. You will not be able to participate in capital appreciation or rent growth. However, your investment is “safer” than equity as you have first payment rights in case of liquidation.

    
Investing in equity makes you an “Owner” in the property which means you receive rents and capital appreciation. However, in case of vacancy you will not receive any returns and may have to make debt payments in case you are taking a loan.
  • Before listing new offerings on the platform, Property Share researches opportunities in the market and shortlists specific properties that fulfill our ownership criteria. Once listed, the properties dashboard will contain detailed information on the location, key highlights, pricing, indicative model and legal diligence reports that help you in making an informed decision.
  • Property Share’s investment team comes with more than $1 billion of real estate investment experience. We select properties based on location, developer, quality of development, scope of price appreciation, legality of title and earning potential.
  • In case of normal equity transactions, investors benefit from monthly rental returns and appreciation in the property value.
    In case of debt, you benefit from interest payments.
  • We believe that real estate, underwritten sensibly and conservatively offers the best after-tax returns to investors. Property share founders and investing team come from core real estate investing backgrounds having invested >$1 billion in Indian real estate. We closely follow the maxim “Risk comes from not knowing what you are doing”.
  • We have separate fees for Debt and Equity:

    Debt: We charge a one-time processing fee of 1% and a yearly management fee of 1% of investment.
    Equity: We charge an annual property management fee of 1.5% and a performance fee of 20% at the time of sale after the investor has made 8% annual returns. For e.g. If a property is bought for Rs. 100 and the investor makes Rs. 108 at the time of sale we DO NOT charge any performance fees as we believe we were not able to deliver returns greater than the risk free rate. If for the same property the investor makes Rs. 115, we charge 20% of Rs. 7 (115-108) Rs. 1.4. This way our fees are aligned with investor returns.
  • Given our investment threshold of Rs. 500,000 for residential and Rs. 10,00,000 for commercial, you can invest in a variety of real estate debt and equity products across locations to diversify your savings.
  • Property Share takes care of all asset management.
  • No! There are no other charges.
  • Your investment will go to an escrow account that will be transferred to the Seller on completion of funding.
  • You are free to call or email our team or even better – visit our office for a face-to-face interaction.
  • Sure, give us a shout and we will try our best to schedule one for you.
  • You will sign an ownership agreement with other co-owners and a property management agreement with property share.
  • Co-owners of the property decide the exact time and price at which to sell the property.
    • Property Share believes in 100% transparency in reporting. All property documents, rental agreements, tenancy details, lawyer reports and documents will be available through your dashboard at all times. Detailed monthly financials are also made available through the dashboard.

    • Property tours for viewings will be organized every 6 months for co-owners including a chance to meet and interact with the tenants.
  • At the time of sale, there is an online poll on the dashboard. If 75% of the investors agree, the property will be sold.
  • No we do not guarantee any return. On the contrary we advise potential investors to be wary of any scheme which provides guaranteed returns.
  • Rentals are generally paid before the 7th day of every month
  • You have to compulsorily appoint a nominee for all your investments
  • Property Share allows you to own specific properties in specific locations that are of interest to you rather than in a pool of properties across asset classes (residential, office, retail) and geographies like a REIT. REITs also typically charge very high fees, sometimes in the range of 10-15% and are publicly traded leading to higher volatility.
  • Yes. As an NRI, you can own properties through the Property Share platform. However, your funds must be transferred from your non-repatriable NRO account.
  • Once you have registered with Property Share, we will share new listings with you by email.
  • Yes, as with any real estate transaction, owning property through Property Share carries inherent risks of loss of capital.
  • Property Share is just a property marketplace and once a transaction has taken place, the existence of Property Share is irrelevant. As co-owners, you are in no way dependent on Property Share for operations and management.
  • Property Share is a platform that provides you with relevant information that helps you make informed decisions on real estate. However, Property Share does not make any recommendations about any property and you should carry out your own diligence before committing to purchasing a property.
  • The property is registered in the name of a Special Purpose Vehicle (SPV). All investors become a shareholder in the SPV in proportion to their ownership.
  • No, we register the property in the name of the SPV for which individual investors need not come for registration.
  • You will sign an ownership agreement with other co-owners and a Property Management Agreement with Property Share.
  • The Sale Deed in conjunction with the Ownership agreement will be your proof of ownership. The Sale deed will be in the name of the SPV and the ownership agreement will clearly detail your investment amount and % ownership.The ownership agreement is mandated to be filed with the Ministry of Corporate Affairs (MCA) and will be available for viewing to all investors on the MCA website (www.mca.gov.in)
  • The minimum investment is Rs. 5,00,000/-
  • Once you click on Invest Now on the platform, you will need to sign a one page non-binding Expression of Interest and send us a post dated cheque in order to block your investment amount. You may alse be asked to deposit your investment amount into an escrow account. The ownership and property management agreement will be shared with you and once you approve, the amount will be transferred to the Seller at the time of registration.
  • Under current income tax regulations, your share will be taxed in exactly the same manner as if you had purchased the property on your own. You will be paying two kinds of taxes:

    Rents: Rents received from the property is taxed at 30.6% after allowing for standard deduction and municipal property taxes

    Capital Gains: Capital gains on sale (if sold after 3 years) is taxed at 20% after allowing for indexation benefits In case you sell your share before exit, you will need to pay taxes on gains as per your marginal tax bracket. Please consult your financial advisor for more details.
  • In residential properties, the usual deductions are maintenance, property management fee and taxes.
  • Co-owners form a limited liability SPV where the liability is always limited to invested capital. 

  • Depending on the investment amount, the property will either be registered in the name of a Special Purpose Vehicle (SPV) or directly in the name of the investor.
  • No, you can sign the sale deed remotely.
  • In case we form an SPV, you will sign an ownership agreement with other co-owners. In case the property is directly registered in your name, you will sign a sale deed. In both the cases you will sign a Property Management Agreement with Property Share.
  • The Sale Deed in conjunction with the Ownership agreement will be your proof of ownership. The Sale deed will be in the name of the SPV and the ownership agreement with clearly detail your investment amount and % ownership.The ownership agreement is mandated to be filed with the Ministry of Corporate Affairs (MCA) and will be available for viewing to all investors on the MCA website (www.mca.gov.in)
  • The minimum investment is Rs. 10,00,000
  • Once you click on Invest Now on the platform, you will need to sign a one page non-binding Expression of Interest and send us a post dated cheque in order to block your investment amount. You may also be asked to deposit your investment amount into an escrow account. The ownership and property management agreement and sale deed will be shared with you and once you approve, the amount will be transferred to the Seller at the time of registration.
  • Under current income tax regulations, your share will be taxed in exactly the same manner as if you had purchased the property on your own. You will be paying two kinds of taxes:

    Rents: Rents received from the property is taxed at 30.6% after allowing for a 30% standard deduction and municipal property taxes

    Capital Gains:Capital gains on sale (if sold after 3 years) is taxed at 20% after allowing for indexation benefits

    In case you sell your share before exit, you will need to pay taxes on gains as per your marginal tax bracket. Please consult your financial advisor for more details.
  • Co-owners form a limited liability SPV where the liability is always limited to invested capital.
  • Most properties listed by Property Share are leased so you will know the rent in advance.
  • In commercial properties, the usual deductions are property management fee and taxes.
  • Rents and interest on security deposit are transferred to you every month.
  • Definitely! We will share all the details before property registration.
  • Yes we manage your investment after registration until the asset is sold.
  • Our property management and ownership agreements are drafted by the foremost legal advisors in the country. Decision making is transparent and quantitaively defined. In case of any dispute, you can always sell your fraction.
  • We provide debt investment opportunities for all loans backed by completed rent-generating real estate.
    Below are some of the products you can invest in:

    • Residential Mortgage Loans: You can provide a home loan to to a borrower against a completed residential property

    • Commercial Lease Rent Discounting (LRD) Loan: You can provide an LRD loan to a borrower against a commercial property tenanted to a blue chip tenant.

    • Loans Against Property: You can provide a loan against a specific property – both residential and commercial
  • You will own a piece of the debt backed by physical real estate through a registered Loan Agreement.
  • The minimum investment amount per loan is Rs. 5,00,000.
  • Most of our lending is to salaried professionals in the Information Technology or services sector. We do not lend to developers or builders.
  • You will sign a loan agreement with the Borrower.
  • The duration of loans are generally 4-9 years.
  • Apart from the full details on the underlying property you can view a specific “Debt” tab in the properties dashboard that provides you with information on the loan like size of the loan, Loan to Value (see below), interest rate, tenure, your cost basis on the property, details on the borrower etc.
  • Loan to Value is one of the most important measures of default risk. It is calculated as:
    Loan amount / Property value
    It tells you how indebted or levered the property is. Any LTV above 75% is considered risky. Property Share does not advise LTVs of more than 60% for borrowers as well as lenders.
  • We follow a rigorous due-diligence process before listing loans on the platform that include the following:

    • Property level: Granular review of the underlying real estate including discounted cash flow analysis, legal due diligence (title, permits, building permissions, OC) and technical diligence (structure, back-up services like DG).

    • Borrower level: Financial statements, CIBIL score, credit history, salary, loan to value (LTV) ratio, interest coverage ratio among others.

    Our guiding principle in providing good loans is simple: “Do not set-up the loan to fail” which means structuring a conservatively levered loan (low LTV) upfront so that the borrower is motivated to pay. High LTV loans have the highest default rates world wide.
  • You are investing in a secured loan backed by income generating real estate. In case of default, Property Share will take over the buyer’s share of the underlying real estate and sell it to recover the loan and outstanding interest amount (if any). Since we own the equity portion of the real estate we are best placed to understand its value. Property Share may also invoke a personal guarantee given by the borrower in case the proceeds are not enough to pay off the loan.
  • Missing a payment is a rare occurrence since the underlying property will already be rented and Property Share will be distributing the rents. However, sometimes a borrower may need flexibility in paying a month’s interest. If we are comfortable with the delay, we will provide a small window of flexibility after consulting with you. In case the delay is longer, we will initiate default proceedings.
  • In such a case the lender’s investment is returned immediately and the loan closed.
  • You will receive monthly interest payments on your loan and in certain case equated monthly installments.
  • You will receive monthly updates on credit of interest through our investor dashboard.
  • Yes, you can sell your fraction of the loan on our debt resale platform at anytime by initiating the “Sell” request from your dashboard.
  • On maturity, your loan will be repaid in full.
  • Investing in loans through Property Share has many advantages:
    • * Minimum investment amount of Rs. 5,00,000
    • * Rigorous diligence on the underlying property and the borrower
    • * Deep familiarity with the underlying real estate as Property Share investors own the equity portion
    • * Tradable on the platform
    • * Hassle free process
  • At the time of investing in property, you can choose the “loan” option.
  • Property Share offer three types of loans:

    • Residential: 4-20 year home loans; interest only at 9%+ or EMI

    • Commercial: Loan for purchase of property; 11%+ full recourse
  • Our loans are similar to traditional banks but our technology and team make the process much faster and professional.
  • Borrowers benefit from competitive interest rates, a quicker and more transparent underwriting process, flexibility in product offerings and loan structures.
  • We offer competitive interest rates subject to a variety of factors including property location, loan size, and financial position of the borrower.
  • Depending on the size of the loan we take 10-30 days to raise a loan.
  • Investors registered on our website primarily make the loans.