fractional ownership

I received a call and a mail from "The fractional group" regarding for buying a fraction of a property, fractional ownership.

You know about it?

Does anyone has a fractional ownership?

I think the properties are in Marbella -  Malaga.

it is becoming a popular marketing for developments which are unsold

I know some buyers who like it and fits their life style...but it is time share in another form...again I know many who have enjioyed their time share

But it is not an investment and in EU so far selling on is not easy and may even be more difficult than time share

There are some quite expensive fractional schemes in Spain and Portugal and more often than not you can buy your own property for the same amount, perhaps not so much luxury but at least your own

Again some like it .........but bear in mind that 1/4 share is not 1/4 of the value.....some dealers have bought say a Polaris World unit at normal price and then sell 1/4 shares off at circa 30% more than original cost

So do look at other options... .......................and for some fractional is just a payment up front for holidays...bit like buying a caravan in UK......and they enjoy it  

I thought that with timeshare, what you are buying is time.  For example 2 weeks per year for x number of years.  With fractional ownership, you own a percentage of the freehold.  So they are 2 completely different things as I understand it.

David

That is correct but the principle is the same as you only have the right to use it for a specified time which varies each year

In general it is difficult for any improvements to be carried out without all part owners agreeing unless there is an otherwise onerous management structure set up and run by the developer to his profit

Also in theory you can sell your share to anyone but re sales in EU have so far been very difficult...sometimes the other part owners will buy...but after a few years use and the condition becomes a bit tired, then very difficult

Some people do make money and I know of one buyer who bought 1/4 and as time has gone on has so far picked up two further 1/4 s very cheap...only buyer.......

My observation is that if the property is worth say 200.000 € then it is not uncommon to find a 1/4 share at 75.000 € and if you get into a scheme where they are selling 1/8 shares then the cost of one circa 50.000 € an so on

Some developers insist that a management service is provided including regular maid service minor repairs etc and your running cost can be circa 2.500 € pa +

Now for some having this they feel like an owner without the responsibilities and are prepared to pay the cost....no problem with this and buyers shouild just make sure that they know fully the terms of their purchase and enjoy their holiday there

But it is not a cheap way of having your own place in the sun and so far they have not been easy to get rid of

You may get a loan to buy organized by the developers!!! but not a conventional mortgage from a bank not connected to the development....and that tells you all you need to know about the security of your investment.....if you think it is one in any form whatsoever!