Fractional Ownersip?

[Peter Mitry]

What do members think of this new way of owning property? This is where people get together to jointly purchase either a villa or apartment for two to three months each. Each persons period of ownership then rotates each year so that everyone gets to enjoy the different seasons.

This is NOT time share where the promoters charge ever increasing management fees and you never actually own the free hold. Here a group of owners own specific months and share the costs equally. As a group you are always in control and are free to sell your share at any time.

This method of ownership would be perfect for Egypt with an all year round season and very appealing in the high end resorts like El Gouna or Sahl Hasheesh.

It would be great to get some feedback.

[Rivermead Global Property]

Peter, here is a link to a company i work with in the Uk for Fractional Ownership, it might help to explain the mechanics of it better

Waters edge Cotswolds - Luxury Property for Sale

[HORIZON]

Well even if investors welcome this idea, it will be difficult to come through to developers with this one.

Personally I would go for it only in case I know the people who are buying the rest of the fractions, because it will come to arranging the time to stay, as well as the way how the property is treated while you are not around. So it is just for pure investing I would say...

[Georgina]

Sounds an interesting idea. I think a lot of purchasers are either buying to rent out or want to keep their property just for their own use and for friends and family. This would be a much more cost effective way if you were not using your property much and didn't like the idea of strangers renting it and worrying about someone who has no respect for your property. There are some horrible stories about how some people abuse properties during rental.

If all four buyers agreed it would be simpler i.e. the property can be rented out via an agency or just used for all four owners friends and family?

It would be a good way to purchase a front line beach location in a more expensive location that would otherwise be financially out of reach.

[Peter Mitry]

Originally Posted by Georgina

Sounds an interesting idea. I think a lot of purchasers are either buying to rent out or want to keep their property just for their own use and for friends and family. This would be a much more cost effective way if you were not using your property much and didn't like the idea of strangers renting it and worrying about someone who has no respect for your property. There are some horrible stories about how some people abuse properties during rental.

If all four buyers agreed it would be simpler i.e. the property can be rented out via an agency or just used for all four owners friends and family?

It would be a good way to purchase a front line beach location in a more expensive location that would otherwise be financially out of reach.

How this works is that a Developer will nominate a number of properties to be sold in this way; this would normally be the more expensive units in the best locations but of course it could be anywhere. When potential owners express interest the Developer will establish the property concerned as a limited liability company and will sell shares, depending on how many owners are envisaged.

In most cases this will be four shares of 25% each so a potential buyer could buy one or more shares. Usage of the apartment will be on a revolving calender so that all owners get equal shares of the more popular times throughout the year.

Owners can either use their time or rent to friends and family as they wish.

If an owner wishes to sell, the share may be offered to the other owners or offered to new buyers at the going rate.

The costs of maintaining the apartment/property will be agreed between the owners and shared equally.

[Organics1]

Fractional ownership = a slow property market