Frequently Asked Questions
What KYC documents are needed to sign up with Plotshare?
Our KYC process is completely digital. You will require a scan/image of your Aadhar Card and PAN card, along with registered your mobile number.
Do you have a mobile app?
No. To facilitate secure and easy validation of ownership documents, we prefer all financial documentation to be directed through our website to ensure transparency for all official documents
What happens if a property fails to be fully funded?
Investor's funds will be reimbursed to their registered bank account if a property on our platform doesn't complete its funding target
What is the minimum investment?
The minimum investment amount differs from property to property. Kindly refer to the respective property page to find the minimum investment amount
What are the risks associated with these investments?
This is a relatively low risk investment model. Risks associated could include changes In property prices, or real estate market downturn. We ensure that all the assets we pick for you are Grade A developments with top-tier developers, clean contracts and quick turnaround periods. To ensure superior returns for our investors we choose assets that we believe have a strong potential to appreciate. Various risks associated with fractional investments such as liquidity, buyers and market risks have been mitigated as much as possible with our robust due diligence and management processes.
What sort of returns can I expect?
Based on the historical data Plotshare expects to see 15 to 20% yearly returns on its listed assets, with an expected IRR of greater than 20% over a period of 2 years. Please note that this is our expectation and now way is an assured return.
Do you offer any guarantee on returns?
No, Plotshare does not offer any guarantee on returns. Instead, we advise our potential investors to be cautious of any scheme which claims guaranteed returns.
What is Plotshare's fees?
We charge 1% management fees annually on the total returns once the property is sold after the holding period.
When is my investment process complete?
Your investment is completed as soon as the opportunity is fully funded and private placement of your investment is done in the SPV.
Plotshare generally has a time frame of 60 days to ensure that the property receives complete funding.
How can I exit my investment?
You can exit your investment once the lock-in period is complete. Plotshare will identify the right buyers after the lock in period and will ensure the sale to maximise your ROI. Once the asset is sold, the gains (post any taxes and fees) shall be distributed amongst shareholders and remitted to the respective registered bank accounts.
What are the tax implications on my investments?
For Indian residents, you will be paying taxes on capital appreciation. Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the shares and debentures were held (short-term vs long-term).
Short-term Capital Gain will be applicable if the shares and debentures are sold before 24 and 36 months respectively This will be taxed at the rate applicable to the investor.
Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 and 36 months respectively. It will be taxed at 20%, irrespective of the quantum of gains.
How will the returns of NRI be taxed?
Under Indian income-tax law, an NRI is required to pay tax on any income earned or sourced in India. If the income in India exceeds the basic exemption limit, the NRI will have to pay taxes in India as per the applicable slab rates.
Appreciation: Capital appreciation is subject to capital gain tax at applicable rates. The applicable tax rate would depend on the period for which the asset was held (short-term vs long-term).
Short Term Capital Gain will be applicable if the Shares & Debentures are sold before 24 months and 36 months respectively. It will be taxable as short-term capital gains at applicable tax rates for the respective NRI(s).
Long-term capital Gain will be applicable if the Shares & Debentures are held for more than 24 months and 36 months respectively. It will be taxed at 10%, irrespective of the quantum of gains.
Is fractional ownership risky?
Fractional ownership is a lucrative investment option due to its low risk/high return profile. Yes, as with any investment model, it carries inherent risk limited to profit expectations, but the risk is relatively very low compared to most investment options at these expected returns. Plotshare uses machine learning and blockchain technology to create transparency of information and ease of access, to mitigate these risks as much as possible.
How can I get specific questions answered on a particular property listing on the platform?
For asset specific queries please enter your name, contact number and email ID in the enquiry form and one of our representatives will get in touch with you to resolve your queries.
Click here to drop an Enquiry
What is fractional real estate investment?
Fractional real estate investment is an innovative way to invest in real estate. It refers to the legal sharing of property among multiple owners. The property title is divided in a manner that each investor owns a fraction of the real estate asset. The investors benefit from appreciation in the value of the asset over the holding period.
How are the investments structured?
For each asset listed on the Plotshare Platform, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property.
Your investment shall be towards subscription of the shares and compulsorily convertible debentures of the SPV that holds the property and represents your fractional investment.
Plotshare will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance, and other operational aspects under the asset management services contract with the SPV.
What is an SPV?
A Special Purpose Vehicle is an entity incorporated/created under the law, being a Partnership firm, LLP, a private company, etc., for a specific lawful purpose.
Any investment opportunity listed on the Plotshare platform will be owned by an SPV being a private limited company set up for this specific purpose
Who can invest with Plotshare?
Any Indian citizen, NRI, company (Pvt Ltd/ Proprietorship), HUF/Trust, cooperative society can invest with us subject to valid KYC and regulatory guidelines. Please contact Plotshare at info@plotshare.com for any related queries.
Note for NRI investors: NRI investors can only invest through an NRO Account or from a normal savings bank account in India. We cannot accept payments from NRE Account or in FDI.
What process does Plotshare follow when acquiring an asset?
Property listing is the most important process in Plotshare. We follow a robust, data-driven asset selection process for our investors to make maximum returns on investments. Due to our stringent due diligence and evaluation process, only 2% of the total properties analyzed get listed on our platform. For more details Please visit: How it works
Will I need any legal support to make an investment?
We will make sure we take care of all the legal aspects of your property purchase, digitally and transparently so you can access all the related documents online on your account. Plotshare will take care of all the due diligence on your behalf. Still, if you want to proceed with your own legal support, kindly reach out to us for further information.
Will I need to travel to the location of the property or such?
No. You don't have to travel for any documentation procedure. All necessary document verification, signatures will be carried out digitally.
How do you keep my personal information secure?
Plotshare uses a highly secure platform to provide ultimate data security and simplify the ease and security of transactions. All the sensitive investor data is encrypted and stored with 256 bit SHA encryption. We also follow Non-Disclosure And Confidentiality Policy.
Is my investment liquid?
NO, you will have to wait for the completion of the holding period for the asset to be sold and the optimised returns are deposited back to your account.