Archive for May, 2009

Fractional Ownership in Cape Verde

Santa Maria Beach, on the Island of Sal in Cape Verde is a luxury resort of 150 high quality apartments. The resort will be three levels with the ground floor especially given over to a quality commercial area with 65 shops and 3 apartments.

The first and second floors will have studio, one and two bedroom apartments and each property is being sold fully furnished to exceptional standards.

Each apartment will have its own terrace some with either sea views or facing the town of Santa Maria. On the second floor many of the apartments will have roof terraces which will be a fantastic place to relax and soak up the sun.

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Currencies Direct back Fractional Ownership

The latest big thing in the property market, according to Currencies Direct, would appear to be  “fractional ownership.” For those of you still out of the loop, fractional property ownership is the division of the title or deed of a property into portions or shares.

This is not the same as timeshare, where you buy time in a particular holiday resort and the use of that property for a specific number of weeks. The big difference with fractional ownership is that the buyer owns part of the property, which is then shown in the title deeds, rather than units of time in a timeshare deal. With fractional ownership you are free to sell or rent out the property whenever you like.

Fractional ownership has been a huge hit in America for nearly 20 years and now is catching on in other parts of the world . There can be any number of owners in a fractional ownership deal – the more owners, the lower the price of your share will be.

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Fractional Summit 2009

April 2009 saw the second Fractional Ownership Summit,  Europe’s Fractional Ownership Property Conference. The event was sold out as this is being talked about as the latest new trend in real estate.

Held at the Hilton Metropole and organised by Fractional Life, The conference was seen as hugely successful and several of the guests and speakers are considered to be  the current trend setters within the market.

Piers Brown, Founder of Fractional Life who chaired the event was quoted as saying ,” Fractional Summit has got stronger. The appetite for fractional ownership in Europe is now well and truly here”.

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Fractional Ownership on the increase

Buying a second property may seem like a dream you once had  during these difficult financial times, however, Fractional Ownership is making these dreams a reality and the industry is going from strength to strength.

Worldwide, fractional ownership is worth around 1.2 billion sterling and, particularly in Europe, the number of fractional ownership projects has gone from 60 to more than 90 in the last year alone. It is being marketed as a fantastic opportunity to own a second home without the usual financial burdens.
Fractional ownership has increased in spite of the drop in the property markets worldwide. Developers are working hard to shift their properties and fractional ownership is an easy way to package a property sale. Piers Brown, spokesman for the Fractional and Shared Ownership Trade Association, says: “With the lack of finance available on whole ownership, the developers think that fractional is the answer to their prayers. It lowers the price point and opens up the marketplace.”

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What is Fractional Ownership?

Fractional ownership is a way of dividing any asset into shares. In the case of property, the title or deed can be legally divided into shares.

Shares can be purchased and owned by more than one individual. The reason for this can vary. The two main reasons are to allow transfer of shares without the need to make changes on the deeds of the property, and for tax benefits.

Shared ownership of a property entitles shareholders to usage rights, in the form of weeks. Fractional Ownership is not the same as Timeshare.

Fractional Ownership gives much of the freedom and benefits offered in timeshare, but the big fundamental difference with fractional ownership is that the purchaser owns part of the title (as opposed to just units of “time”). Therefore, as the property appreciates in value, then so do the shares. As with owning a whole property, fractional owners can sell whenever they want to, and releasing the capital growth from their investment.

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