Fractional is Logical
Fractional is Practical
Fractional ownership is a structure by which several parties can share the ownership of a high-value tangible asset, usually a jet, yacht, property or a piece of resort real estate. It can be done for strictly monetary reasons, but typically there is some amount of personal access involved. One of the main motivators for a fractional purchase is the ability to share the costs of maintaining an asset that will not be used full-time by one owner.
BUY A LUXURY HOLIDAY HOME FOR A FRACTION OF THE PRICE.
The Fractional Ownership structure is the shared ownership of a property by several parties, via a Holding Company.
There exists several different structures of Fractional, from a single fixed week to rotating weeks or months.
Structures are adapted to suit the type of properties on offer and prices may vary from one period to another.
FRACTIONAL INVESTMENT: A relatively new form of funding, which opens the market to a far larger investor group.
For less than £10,000 – or multiples – an investor will own a share in a managed property.
This funding structure is used mainly in the hotel industry, retirement and care homes and commercial property.
An alternative to the traditional Stock Market, investors have a direct interest in a property, but have no use of the property – a simple property investment at low entry prices to enable a diverse portfolio.
FRACTIONAL HOLIDAY OWNERSHIP: The original Fractional concept of sharing the purchase price and the maintenance of a luxury holiday property.
The majority of second homes are used for less than 4 weeks per year by the owners; which leaves the alternatives of an expensive maintenance outlay each year, or a local management agent.
For the price of an average apartment in a secondary position, a Fractional investor can enjoy weeks of holiday in a luxury villa or apartment in an exclusive resort.
Many Fractional developers offer access to an exchange club, enabling owners to swap their time in their own property for a similar property elsewhere. This is NOT Timeshare, it is property ownership with flexibility!
Each owner is guaranteed a prescribed amount of access to the asset, which typically can be used or offered to the public. The income is usually split between the management company and the fractional owner. Additionally, each owner pays a portion of the annual management fees and maintenance, relative to the percent of ownership.
FPA ALSO OFFERS FRACTIONAL EXCHANGE: The option to exchange or sell a Fractional share to upgrade to a higher investment or change of destination.
Fractional is good for an investor:
- Asset appreciation via freehold ownership
- Minimisation of running costs in relation to usage
- Acquire a more luxurious lifestyle
- Professional management of the property and surroundings
- Potential income from rental of unused weeks.