Benefits of fractional ownership for buyers

Reduced entry costs. Purchase costs are shared between owners enabling buyers to either spend less money or spend the same amount on a fraction of a far more superior or better located property. Investment in higher-value properties in far more desirable locations not only offers a more enjoyable holiday experience but usually ensures the value of and demand for the property remains strong.

Maintenance costs, management fees and taxes are shared between multiple owners. This means that the annual financial burden of owning a second property can be reduced significantly.

Less exposure to foreign (or local) property markets. Naturally with shared ownership comes shared risk. Many people have become unstuck by stretching themselves on the purchase, mortgage and running costs. Fractional ownership enables buyers to buy enough time (and equity stake) as they need and intend to use and not take on 100% of the costs associated with whole ownership.

Owners don't have to rely on rental income. Most people don’t tend to holiday for more than a set allocation of weeks per year. Fractional buyers can purchase an amount time in a property, which they will actually use. Therefore, they don’t have to worry about renting it when they are not there, to justify the expense and most probably pay the mortgage.

Less hassle. Appointed management companies take the pain out of second home ownership. When owners turn up, everything is ready and in perfect working order.

Investment. Due to the fact that fractional buyers own a share of the “bricks and mortar”, they can benefit from any increase in the property’s value.

Easy entry. Fractional ownership gives buyers the ability to get on the International property ladder at a much lower cost. The buyer can still experience capital growth and all the other lifestyle benefits associated with whole ownership of a property overseas.

Property is occupied more. Research shows many second home properties sit vacant for a significant portion of the year. This can create maintenance problems not only for the owners and the property itself, but very importantly for the local economy who suffer from periodic unemployment and low seasons. If a property is shared between 12 owners for example, all with 4 weeks usage, they will want to make use if their property for their allocated weeks, meaning that the property is much more likely to be used consistently throughout the year.

Exchange programs. Many fractional residences are sold with affiliated exchange programs meaning that owners can choose to change the destination of their holiday as and when suits.