Fractional Ownership
Fractional ownership is an increasingly popular and cost-effective way of investing in property, where several unconnected buyers can safely combine their resources to collectively own a property.
People have been co-investing with family and friends for years as it is a great way of splitting the costs of buying a luxury property that you could rarely afford on your own. As time has progressed the structure in which these groups were purchasing has evolved to fractions so that if one member of the family or group wanted to sell, they could do so without affecting the other owners.
This innovative ownership formula provides complete investment, legal and tax benefits of property ownership which are passed through to you, or your heirs. Owners are at liberty to sell their share in the property at any time or leave it as inheritance in exactly the same manner as they would an entire property, along with its related usage and exchange rights.
Fractional ownership opportunities also offer the reassurance of less initial outlay for a property that you will most probably only use for a maximum of one month a year, if at all?
For investors looking to spread their funds into as many different properties and markets as possible, this is the perfect option.
How it works?
There are slight variations with each developer but ordinarily a detailed and legally binding co-ownership agreement allocates usage rights, costs and responsibilities among the co-owners. In some instances the freehold is literally divided into fractions and sold to each investor, in others a company is created with for example: Twelve shares, each investor will own one or more of these shares. Normally the occupancy dates are rotated so every investor can utilise their fraction in high & low season periods. Maintenance fees and bills are ordinarily pooled so the investor has fewer overheads.
Frequently asked Question: Is it a timeshare?
Answer: ABSOLUTELY NOT! With a timeshare you only own the usage time, with fractional ownership you co-own the title deeds which means you benefit from any yield derived and when you sell your fraction you will make profit on any capital growth that has occurred. This can be closely monitored by other property values in the local vicinity.
Benefits
- More affordable
- Same % capital returns as in an entire property
- Own more than one vacation home
- Diversify to maximize profit and minimize risk
Bonus
In some instances purchasing a property fraction also entitles you to receive membership from organisations which can exchange your “home property fraction” time slot to other luxury destinations of your choice around the world. You would still however receive any yield derived from your original purchase & capital gains as & when you choose to sell.
At Emergis we have sourced a number of developers who offer some of their properties for sale as fractional ownership. They vary from 1/4 fractions to 1/16 depending on development and location.
Investments Currently available:
- France - Halcyon Retreat from €40,000
- Cape Verde - Dunas Beach Resort, Sal Island, Cape Verde from €104,950 - €799,950
- Cyprus - Larnaca Villas & Apartments from €56,000
- Greece -Halcyon Hills Luxury Resort & Spa, Samos, Greece from £21,000 - £735,000
- St. Vincent -Buccament Bay Beach Resort, St. Vincent from £25,000 - £1,095,000
- UK - Fractional Car Park Investments, Nationwide from £15,000
