What is hBits?
hBits is a commercial real estate ownership platform that enables anybody to buy a fraction of Grade - A real estate assets.
How does hBits select properties?
hBits’ real estate team comes with a significant wealth of experience in commercial real estate. The properties are selected based on a range of factors including but not limited to location, developer, quality of the building, and quality of tenant.
How can I diversify through hBits?
hBits’ unique offering of commercial real estate with a minimum ticket size of INR 25 lakhs enables you to diversify your ownership in a variety of real estate options as per your criteria.
Who takes care of tenancy and management?
Tenancy and Management are taken care of by professional property management service providers.
Who decides exit timing and pricing?
hBits provides the flexibility of selling your ownership of the asset at any time and any price. At the same time, hBits provides unique and relevant data insights about the market for better decision making in exit timing and pricing.
Do you offer any guaranteed return?
No, we do not offer any guaranteed returns. However, the rentals are contractually obligated by tenants with three to five years of the lock-in period.
When will the rentals be paid?
The rentals will be distributed monthly to every owner.
How is hBits different from REIT?
hBits offers a variety of commercial real estate assets in terms of size, location, tenants, developers for you to choose from rather than a portfolio of real estate assets across geographies and real estate asset classes as in REIT. Further, you choose the asset you want to own unlike in REITs which gives more control over the flow of your money. Also, REITs fees and expenses significantly high and are traded publicly which makes it a volatile investment.
I am a non-resident Indian. Can I use hBits?
Yes, hBits does not restrict the usage of its platform.
What do I own when I purchase through hBits?
You will own a specific fraction of the property you have selected. In principle, you become a part-owner of special purpose vehicle which solely owns the concerned real estate asset.
How can I exit my ownership?
An owner has the flexibility of selling their fraction of property either through hBits platform or offline.
Do I need to be present for property registration?
No, everything can be taken care of remotely through technology.
Why own commercial real estate?
Commercial Real Estate, unlike residential, provides higher and steady returns in the form of rental yield and capital appreciation. Generally, one can expect contractual yield + appreciation potential in the range of 12% to 20% which is significantly higher than residential asset class. This is proven by the recent activities of major private equity players in India like Blackstone, Brookfield, and Xander among others.
What size of properties does hBits pursue?
hBits usually pursue properties with ticket size in the range of INR 5 to 200 crores along with a diverse range of factors not limited to location, developer, quality of the building, and quality of tenant.
Are there any hidden costs apart from the initial amount?
No, there are no hidden costs
How will my returns from rental income be taxed?
There will be no double taxation on your returns. Taxation will be similar to having sole ownership of a property.
What is the rental yield?
Rental yield is the yearly rental income as a percentage of the total asset’s value.
Can I buy a fraction for lower than 25 lakhs?
No, the minimum ownership amount is INR 25 lakhs
What are hBits fees?
hBits professional fee is 0.5% per year on your ownership amount.