The concept of Fractional Ownership

[camden]

I don't know if anyone else knows anything about this concept now being offered by Dubai Select, but they are offering the chance to buy 1/25th of an apartment in the Torch Dubai, you choose which fortnight you want to buy, and can then either stay there each year or rent it out. After 15 years the building is sold and you take back your 1/25th share, what do you think?
Thanks
Camden

[Gon205]

The FO concept is certainly starting to catch on in the UK and you may wish to take a look at a helpful consumer website that I've set up dedicated to everything fractional including property and private residence / destination clubs at Fractional Ownership | from Fractional Life

[Toby Pocock]

It is not easy to say whether or not it is a good investment from the limited information you have provided. With fractional ownership property you need to consider all the basics of the property in whole ownership form. Price, location, ability to finance through mortgage / rentals etc. With fractional there are more considerations including what the sum of the total fractions add up to. If it is significantly more than the whole ownership price you need to consider if it will hold its value in shared format.

There is a much more information on this at Fraction Direct. com - or you can email the office with your details and I shall contact you to be of more assistance

[Ian Smith]

An Introduction to Fractional Ownership


Fractional ownership is based around the concept of shared ownership; in essence, you share the property with a number of other owners, giving you ownership rights in the property. In simple terms, you buy a ‘fraction’ of the property, or a ‘share’ of the asset, and an entitlement to use it for the corresponding fraction of time.

The property is located in a prime resort location and combines the convenience and comfort of owning your own luxury holiday home with benefits normally associated with a 5 star hotel.

What fundamentally differentiates fractional ownership from timeshare is the
element of true ownership of the underlying assets.


The David Lloyd Fractional Model


Shared ownership has been available to people for many years, whether it be family members purchasing a property together, or a group of friends who buy a holiday home and simply share the weeks between them. David Lloyd Resorts offers you the same ownership and flexibility but with a whole host of unrivalled facilities managed by one of the world’s leading brand names.

Your fraction entitles you to 4 weeks usage each year. These weeks include 2 peak weeks, fixed together, at a set time in the calendar year. The location where you fix your peak weeks determines where your ownership is set. You will then have 2 additional floating weeks to be taken at any low peak period within the David Lloyd Resorts.

In addition to four weeks holiday every year in a beautiful David Lloyd Resort, your property will also be fully managed and maintained on your behalf. Plus, if you love to travel, you also have the option of exchanging your holiday destination with over 2,400 other resorts around the world through the Interval Gold membership.

If you love to spend your Christmas or New Year holidays abroad, there is also an option to purchase our super peak period, which is set in two week blocks that include either the Christmas or the New Year holiday period each year.

After 10 years the property will be sold and any increase in the value of the property (less any sales commissions) will be shared between the owners and DLR.