SmartOwner - The Indian Company Revolutionizing Property Investment
India is in the midst of an extraordinary long-term growth phase.
The World Bank estimates that the country will be the world’s fastest growing emerging economy by 2017;
the IMF agrees but predicts that it will
happen even earlier. A core feature of this development is
the rise of the middle class. The number of Indians in the middle-income group
is anticipated to climb to 200 million by 2020, and then to
escalate further to 475 million by 2030.
Present Scenario
Over
the long term, real estate values are expected to rise in tandem with the
upsurge in the middle class population and the corresponding increase in demand
for flats, villas, office buildings, and retail establishments. This principle
bodes well for property investors. But as anyone who has conducted real estate
transactions in India can describe, the experience can
be harrowing. The purchasing process often includes red tape, heavy time
demands, and legal uncertainty. Moreover, the assumption is that investing in real
estate, by its very nature, means forking over large cash outlays. Faced with
these barriers, many individual investors shy away from real estate beyond
their own homes, instead looking elsewhere for ways to grow their wealth.
SmartOwner & its approach:
SmartOwner is the innovative company that has begun to change all hassles of property buying.The leaders of SmartOwner
describe
their firm as “India’s first and largest online marketplace for real estate
investors”. With clients across nearly 20 countries and 160 cities, they have
established themselves as the leading crowdfunding service for Indian-origin
investors anywhere in the world. So far, they’ve helped clients invest in more
than 8 million square feet in premium properties. Founded in 2012 by veteran
Silicon Valley entrepreneurs with deep experience in real estate and IT
(including the creation of Snapfish, which they sold to HP for $300 million),
the company’s vision is nothing less than to revolutionize property investment
practices in India.
SmartOwner’s
modus operandi is to scout out planned projects from reputed developers,
negotiate steep discounts, and then pass along these savings to clients. Since
the company’s bulk purchases are made in the very early stages of a
project—often in the pre-launch phase—the discounts to clients can be as much
as 30% below the market rate.
A
key differentiator in the SmartOwner model is the option to invest flexible
amounts. Rather than committing a large sum for a single property, investors
can purchase on a flexible down payment basis. This means that there is a lower
barrier to entry on each purchase, and also that investors can diversify across
multiple projects and cities easily. Furthermore, investors can keep purchasing
smaller amounts incrementally, creating a robust property portfolio over time.
This approach stands in stark contrast to the traditional model of saving up or
borrowing to buy a single flat or villa. In other words, SmartOwner enables
property investors to put their eggs in various baskets.
Another
differentiating feature of the SmartOwner model is the layer of safety it
offers to investors. First, the company conducts exhaustive market and legal
due diligence on each property; in doing so, it ensures that the location is
advantageous, the developer has a strong track record, and that the title is
clean. “We use a 72-point checklist on each and every property,” said CEO and
founder Vikram Chari. “This means we leave no stone unturned with regard to
clearances, land surveys, and other title checks.” As an additional safeguard,
SmartOwner channels all transactions through an escrow account, a practice
which is not yet common in India.
 |
In
a further departure from traditional real estate transactions, SmartOwner keeps
up the relationship with the investor long after the initial purchase. When the
time is right to sell, the company assists the client in divesting the holding
profitably. Overall, client’s profits have been excellent so far: the company
claims that a return of 20 percent within 12-36 months is typical. It’s the
combination of deep initial discounts and subsequent market appreciation that
enables clients to achieve impressive returns.
At
present, SmartOwner is concentrating on assets in the urban IT hubs of Pune,
Chennai, and most particularly Bangalore, where fast population growth, high
white-collar salaries and low property prices converge to make an attractive
investment environment. The process is designed to be hassle-free and easy for
an investor to carry out online, which is a particular convenience for the
company’s many overseas clients.
Vikram Chari, Founder Chairman & CEO sums it up as :
“Our clients are scattered around the world but are aware of the tremendous growth potential in cities such as Bangalore. We make it simple and safe for them to take part in that growth.”
To summarize, a deal through SmartOwner results in the following benefits :
- Deep discount: Up to 30% upfront discount
- Simple: Hassle-free transaction
- Safe: Rigorous due diligence; all transactions through escrow account
- Liquid: The typical project allows you to resell in 24 months or less
- Flexible: A variety of down payment options
- Diversified: Ability to buy different types of properties
 |
The
convergence of historic growth, online technology, and business innovation has
enabled SmartOwner to create this viable new model for property investment. As
investors become more comfortable with crowdfunding and convinced of its advantages,
SmartOwner is well-positioned to lead a transformation in the marketplace.
