• Home
• Americas
  • Brazil
  • Caribbean
  • Panama
• Middle East
  • UAE
  • Jordan
• Europe
  • Turkey
  • Portugal
  • Cyprus
  • Spain
  • Italy
  • Bulgaria
  • Greece
  • Poland
• Africa
  • Egypt
  • South Africa
  • Cape Verde
• Asia
  • India
  • Thailand
  • Malaysia
• Fractional

 

Fractional Property Ownership

 

What Is Fractional Property Ownership?

Fractional property ownership has grown considerably in popularity over the past two years, and is today one of the fastest growing sectors within the overseas property market. Superb new property developments such as those at Halcyon Hills, Villamoura and Royal Obidos now offer purchasers the opportunity to own an equity stake in a property which would otherwise have been unattainable. Suitable for both lifestyle purchasers and seasoned investors, it is easy to see why fractional property ownership has increased so dramatically over the past twelve months.

 

The model for fractional ownership:
In fractional property ownership, clients purchase an equity stake in the property, rather than a 'right to use' as in timeshare. This equity stake can be sold, transferred or passed over to another party in the same way as traditional property purchases, with the difference being that stake is simply an equity share of the overall property. Typically, this equity share will represent 1/6th or 1/12th of the overall value, and will allow the owner to benefit from any increase in the value of the property.

 

Within fractional ownership, each owner would receive an individual freehold title in the property. This title can then be sold, mortgaged or transferred without the owner requiring prior approval from the other equity stakeholders. However, in the majority of instances in fractional ownership, the contract will require that the other owners of the fractional unit are given first refusal on the title to be sold. 

 

The benefits of fractional ownership:
Often these fractional properties are high end villas or apartments, situated within luxury resorts and estates. By dividing the overall cost of the property into individual enquity stakes, the lower entry points allow for greater affordability of the property. In short, people who would not otherwise have been able to afford to purchase the villa, can afford to purchase a 1/12th equity stake.

 

As an owner of an equity stake in the property, rather than just 'right to use,' you are then entitled to share in any capital appreciation on the value of the property. Subsequently, fractional ownership appeals not just to the lifestyle purchaser, but also to the more seasoned property investor. Indeed, with many of the newer developments offering highly attractive payment schemes, the appeal of fractional property as an investment is considerable. As such, large numbers of investors have purchased on this basis as a means of diversifying their portfolio in a more cost effective fashion.

 

A large number of the fractional opportunities currently on offer are being developed within luxury resorts, where property management companies are responsible for the ongoing management of the resort. As such, there is often the opportunity to include the equity stake in your property within the rental pool, allowing you to benefit from any time which you chose not to take advantage of. Of course you will also benefit from the ongoing management of the property company, who will ensure that your property is managed and maintained on an ongoing basis.

	Halcyon Hills - Fractional ownership three bedroom villa in Samos£76,000 Fractional ownership opportunity in Greece - nestled on the verdant island paradise of Samos, the breathtaking Halcyon Hills resort combines ancient character and charm with the luxuries of modern life. The very best of the old and the finest of the new, combine to create a truly unique property experience. >> view detail
	Halcyon Hills - Fractional ownership two bedroom villa in Samos£43,000 Fractional ownership opportunity in Greece - nestled on the verdant island paradise of Samos, the breathtaking Halcyon Hills resort combines ancient character and charm with the luxuries of modern life. The very best of the old and the finest of the new, combine to create a truly unique property experience. >> view detail
	Halcyon Hills - Fractional ownership apartments in Samos£22,000 Fractional ownership opportunity in Greece - nestled on the verdant island paradise of Samos, the breathtaking Halcyon Hills resort combines ancient character and charm with the luxuries of modern life. The very best of the old and the finest of the new, combine to create a truly unique property experience. >> view detail
	Halcyon Hills - Fractional ownership one bedroom villa in Samos£30,000 Fractional ownership opportunity in Greece - nestled on the verdant island paradise of Samos, the breathtaking Halcyon Hills resort combines ancient character and charm with the luxuries of modern life. The very best of the old and the finest of the new, combine to create a truly unique property experience. >> view detail