Fractional ownership gives real estate title to the purchasers either directly via the registration of the title deeds, via a holding company owned by the individual purchasers or a trust structure.

As the cost of the property is shared between all the fractional purchasers a €100,000 property sold on a ¼ fractional basis would be €33,000.00 per fraction which includes the fractional uplift and the full furniture package (the cost of the furnishings can vary but will be included in the property price on all occasions). The furniture package included in this example is €12,000.00 which the client would have to purchase in full if buying the whole property but pays only €3000 as a ¼ fractional owner.

Properties in better locations such as by the beach, on a golf course or in a ski resort will have a higher purchase cost than those is less desirable locations as do larger properties such as a villa with a pool compared to a 2 bed apartment. The better located or larger properties are much more desirable and given the dramatic reduction in property price that fractional ownership allows these properties become very affordable.

As the costs of the furniture and the fixtures are being shared by the fractional owners we are able to increase the budgets on these to allow for luxury furniture packages that will be beautifully designed to include leather sofas (where practicable) rather than fabric and flat screen televisions etc which will enhance the property and the enjoyment of its use.

Owning a property abroad can be pose some very real logistical problems unless on owner decides the use the services of a management company. This can be an expensive choice given the property is likely to be empty most of the year but still in need of maintenance and care. All properties sold using our fractional model come with the absolute best of management services allowing the fractional purchasers complete piece of mind.

As a by product of having the property completely furnished and managed all the fractional properties are ready to rent. The house will be ready for your clients and cleaned after they leave. All you have to do is pay the management company for the change of linens and the clean. If anything should go wrong during the rental there is a local company on hand the resolve it.

If a client is dependant on a mortgage to buy the property they want they are going to have to have around 30% as a down payment as most mortgages do not go above a 70% loan to value. In this market the ability to get an overseas mortgage has been greatly reduced resulting in most people not buying their properties. The 30% mortgage deposit that will be required will practically cover the fractional value of the property allowing for the purchase to go ahead but without any mortgage payments going forwards.

Overseas properties will have significant costs on an annual basis that have to be paid by the owners and in most cases these costs are being paid while the property remains empty for long periods of time. With a fractional property these costs are dealt with by the management company and paid on behalf of the owners. Now the fractional purchasers have someone else looking after the payments and they only have to pay a share of these annual costs making the property so much more affordable.

The majority of properties will lay empty for long periods of time. If you analyse how much use an owner can actually take and how much rental will be achieved it will still leave the property empty for the majority of the year. Our fractional model allows the fractional purchasers 6 to 12 weeks per year plus Christmas and New Year every calendar cycle which for the majority of people is more than enough for their own personal use and for rental. It makes no sense paying for a property to have it sitting empty.

At all times the fractional share is a saleable asset as it’s directly related to the actual ownership of the bricks and mortar and not just a right to use holiday time. As such the fractional share can be sold at any time either back via our network of sales or to anyone the owner chooses.