Fractional investments

Fractional ownership is where several unconnected buyers can safely combine their resources to collectively own a property. People have been co-investing with family and friends for years as it is a great way of splitting the costs of buying a luxury property that you could rarely afford on your own.  As time has progressed the structure in which these groups were purchasing evolved to Fractions so that if one member of the family/group wanted to sell, they could do so without affecting the other owners.

This innovative ownership formula provides complete investment, legal and tax benefits of property ownership which are passed through to the investor, or their heirs, and may be sold at anytime. 

The fractional opportunity also offers the reassurance of less initial outlay for a property that an investor will most probably only use for a maximum of one month a year.  For investors looking to spread their funds into as many different properties and markets as possible, this is the perfect option.

Basically, a company is created that owns a property within a particular development or resort. This company is then split into shares and investors can choose to buy one or more of these fractions. This is unlike timeshare where you only own the usage time.  When an investor sells their fraction they will make profit on any capital growth that has occurred and this can be closely monitored by the other property values within the resort or development.

Owners are likely to allow friends and family to use some of their usage and these people are sure to want the option to buy a fraction in the same property if one becomes available. With fractional ownership investors must offer it first to the other existing members, in case they would like more usage or income by purchasing it. Owners in a position to buy would be delighted at the opportunity to own more fractions in their villa.  The value of your fraction will increase with the property value as with a full purchase.

In a popular upmarket resort that is managed well, the amount of guests staying at the resort  is likely to be high and hence so is the number of people who are in a position to buy a fraction in the resort as a holiday home and/or investment - These ‘end users’ are superb re-sales potential. Also, as an investor you are likely to sell at any time to profit from the capital growth on your property. This will not affect the other fraction owners/company members; you can all sell independently of each other.

By purchasing a property through Fractional Ownership via Investors Provident, we can assure you that you won't find a more rewarding and cost effective way to own your dream overseas home or invest in bricks and mortar – To see details of current properties we have available via Fractional Ownership, please click here.

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