I completely agree with you but then again people have different needs and they also have different circumstances and reasons for investing being shared or not. You are right, it has nothing to do with time share (as i mentioned the only similarily is the devision provided by time/weeks). However, if the legislation allows the fractional ownership for property for any specific country then I believe you actually have a lot more rights by buying a share than you would by co-buying (and of course you can adjust to that but you would need a legal document which would be pretty much similar to what you would actually sign as a shared)
I have just spoken to one of the companies that do fractional ownership - out of my own interest- and apparently it is booming in the uk, with exhibitions and an average of more than 100, 000 hits per day which means that the demand is there...the market situation in the uk is not helping either in encouraging people in invest in one property esp in emerging countries...
I do not agree with you on increasing the price of the property by buying it shared ownership...maybe the market has developed since you last looked into it, but pretty sure that is not the case now.
I would rather personally buy 50 in say Bulgaria and 50 in Thailand than 100% in any of them (taking into account that it will be a lot more affordable and also risk would be more diversified - both from rentals and capital gains point of view)
Re Yatchs- agree with you, its like buying a brand new car fully well knowing that the value is going to go down by at least 30% (if not more) by the time you exit the door of the car dealer... However, fortunately with property the opposite holds and value generally increases
Quote:
Originally Posted by The Soup Dragon
My view is that most look negatively on fractional / shared ownership. Many will do so as it’ll remind them of time share (even though it shouldn’t) and others will do so because the owners are collectively paying quite a bit more than the property is worth. (This was the norm when I looked into fractional ownership a couple of years ago.) Then there are the other negatives already mentioned on this thread. I’d rather co-buy a property than go down the fractional / shared ownership route.
KICIta - Never invest in yachts, your asset will depreciate.
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