More developers are looking at increasing the appeal of fractional ownership to mass markets.
Traditionally, fractional ownership models have been offered to market luxury developments with five-star facilities. In order to combat the global downturn in the property market, companies are creating low cost fractions that will appeal to a wider audience of less confident buyers. These include smaller fractions in four-star developments with fewer facilities.
Although fractional ownership will always require purchasers to pay a premium, developers are moving towards making the product relate more closely to the actual value of the property. They are also implementing resale mechanisms, such as offering the ownership for a limited period and selling the property as a whole at the end of the period. Fractional ownership increases its appeal
1st September 2009 11:19
More developers are looking at increasing the appeal of fractional ownership to mass markets.
Traditionally, fractional ownership models have been offered to market luxury developments with five-star facilities. In order to combat the global downturn in the property market, companies are creating low cost fractions that will appeal to a wider audience of less confident buyers. These include smaller fractions in four-star developments with fewer facilities.
Although fractional ownership will always require purchasers to pay a premium, developers are moving towards making the product relate more closely to the actual value of the property. They are also implementing resale mechanisms, such as offering the ownership for a limited period and selling the property as a whole at the end of the period.
More developers are looking at increasing the appeal of fractional ownership to mass markets.
Traditionally, fractional ownership models have been offered to market luxury developments with five-star facilities. In order to combat the global downturn in the property market, companies are creating low cost fractions that will appeal to a wider audience of less confident buyers. These include smaller fractions in four-star developments with fewer facilities.
Although fractional ownership will always require purchasers to pay a premium, developers are moving towards making the product relate more closely to the actual value of the property. They are also implementing resale mechanisms, such as offering the ownership for a limited period and selling the property as a whole at the end of the period. Other General news
Global property prices on the up? - With interest rates around the world at an all time low, many countries are reporting signs of improvement in their property markets. - 15th September 2009 10:09
Eurozone recession deepens as house prices drop - Data compiled by the Financial Times on house prices in the 16 countries of the Eurozone shows a 4.8% drop in prices in the final 3 months of 2008, compared to the same quarter of the previous year. - 14th April 2009 12:32
A fraction of the price - Within the European leisure property market, fractional ownership is set to overtake the sale of freeholds by 2014. - 24th February 2009 15:44
Greece draws the line - Greece’s second attempt at setting up a land registry is now well under way. - 21st October 2008 13:06
Are you protected? - When things are going well, the natural human inclination is to think positively and perhaps ignore some of the potential dangers to our finances, such as illness or death of a partner. In this less than positive environment, with doom and gloom everywhere, it's perhaps a good idea to spend some time evaluating the risks you could currently be exposed to. If you became ill, how long would your income realistically continue? If your 'other half' (assuming you have one) became ill, was permanently disabled or died, would you still be able to meet your outgoings? If you have taken on extra financial commitments over the last few years, have you considered their impact on you in the event of one of these things happening? These are questions we need to ask ourselves honestly and thoroughly. - 7th October 2008 16:35
Share and share alike - Fractional ownership seems to be gaining in popularity among buyers and developers alike. - 16th September 2008 16:02
Insurance for your holiday home -
Combating the poor pound - With the value of the pound having been in decline against the Euro for nearly a year now, it is no surprise that European developers have had to come up with new ideas to attract British investment. At the London launch of a large Turkish development in June, investors were offered a special weekend only exchange rate of 1.45 Euros to the pound and one Spanish agent is currently offering a fixed rate of 1.4 Euros for all deposits paid before 31st July 2008. Investors should not be too put off by the poor exchange rate. If properties are bought off plan, using a Euro mortgage and rent is paid in Euros, the exchange rate only affects the deposit, not the whole transaction. - 17th July 2008 10:24
Wealthy individuals boost emerging markets - Merrill Lynch's recently published Global Wealth Report 2008 provided some surprisingly optimistic reading for property developers in emerging markets. - 3rd July 2008 14:58
Eurozone recession deepens as house prices drop - Data compiled by the Financial Times on house prices in the 16 countries of the Eurozone shows a 4.8% drop in prices in the final 3 months of 2008, compared to the same quarter of the previous year. - 14th April 2009 12:32
A fraction of the price - Within the European leisure property market, fractional ownership is set to overtake the sale of freeholds by 2014. - 24th February 2009 15:44
Greece draws the line - Greece’s second attempt at setting up a land registry is now well under way. - 21st October 2008 13:06
Are you protected? - When things are going well, the natural human inclination is to think positively and perhaps ignore some of the potential dangers to our finances, such as illness or death of a partner. In this less than positive environment, with doom and gloom everywhere, it's perhaps a good idea to spend some time evaluating the risks you could currently be exposed to. If you became ill, how long would your income realistically continue? If your 'other half' (assuming you have one) became ill, was permanently disabled or died, would you still be able to meet your outgoings? If you have taken on extra financial commitments over the last few years, have you considered their impact on you in the event of one of these things happening? These are questions we need to ask ourselves honestly and thoroughly. - 7th October 2008 16:35
Share and share alike - Fractional ownership seems to be gaining in popularity among buyers and developers alike. - 16th September 2008 16:02
Insurance for your holiday home -
A leading specialist insurer and price comparison portal have recently teamed up to provide overseas holiday home insurance. Quotes can be obtained for properties in most European countries for both buildings and home and contents. All policies are written in English and include protection against theft even if the property is left unoccupied. Landlords can also choose to cover themselves against accidental damage for buildings and contents. If you are interested in overseas holiday home insurance please contact us.
- 19th August 2008 16:49Combating the poor pound - With the value of the pound having been in decline against the Euro for nearly a year now, it is no surprise that European developers have had to come up with new ideas to attract British investment. At the London launch of a large Turkish development in June, investors were offered a special weekend only exchange rate of 1.45 Euros to the pound and one Spanish agent is currently offering a fixed rate of 1.4 Euros for all deposits paid before 31st July 2008. Investors should not be too put off by the poor exchange rate. If properties are bought off plan, using a Euro mortgage and rent is paid in Euros, the exchange rate only affects the deposit, not the whole transaction. - 17th July 2008 10:24
Wealthy individuals boost emerging markets - Merrill Lynch's recently published Global Wealth Report 2008 provided some surprisingly optimistic reading for property developers in emerging markets. - 3rd July 2008 14:58
