• Sophie Atieno

5 Amazing Reasons Why You Should Own Fractional Property

We hope you learnt more about fractional ownership of property from our post here and what it means to buy yourself a fraction of a luxury home. You may still be wondering though, “why should I get into it?” What are the benefits of fractional ownership?

Today, people with the ability to buy full homes are opting for fractional ownership instead and many others who already own holiday homes are selling fractions out to lighten the cost of management while they still use the property.

Below are five reasons why you should own fractional property:

Your fractions appreciate in value

In case you’re wondering if owning fractional property is a good investment, the answer is yes, it definitely is. Your fractions appreciate in value and future buyers might want to buy your share. You could rent out your fraction to someone during the time of the year you were supposed to be there on holiday.

The price you sell it at or rent it for is all up to you, meaning you could definitely make a profit from the sale or from renting it out.

Investing in fractional ownership is investing in your lifestyle

Another benefit of fractional ownership is that it’s a way of investing in your lifestyle. Fractional estate owners who sell out fractions understand that real estate prospective buyers are always looking for value and the shares are usually sold as such, an investment in one’s lifestyle.

The moment you invest in a fractional property, you will have more time to spend in a luxury property or on luxury vacations. This means that you get to experience the finer things in life without having to allocate a huge budget to them.

As a fractional owner, you have access to state-of-the-art accommodation or property in different destinations around the world as some fractions are handled by management with links to properties in different countries.

Remember when you buy a fraction, you also get relieved of the check-in and check-out process at a given accommodation. This is because the fraction's management and staff will always take care of these details faster and in advance so that you get the ultimate luxury experience.

The acquisition and operating cost of a fractional property is lower

One more benefit of fractional ownership is that you pay less to own a great fraction of holiday property compared to the amount you would have paid if you had decided to buy the entire property instead.

Aside from this lower cost of acquisition, the cost of maintenance, renovation, furnishing and landscaping the property is shared. Normally, if you solely owned an entire vacation home, you would have to use it intermittently and would probably need to hire an estate manager due to the existing distance between you and the property.

Acquiring a fraction is also a shorter process since creating the legal structure and documentation around it is easier.

Fractional ownership of holiday homes eliminates the need for tenants

When you own a holiday home, you will have to decide whether to leave it vacant or to rent it out to tenants. While renting it out is a good way to make money out of your holiday home, it comes with a couple of drawbacks as it’s time-consuming to set up ads for it and also expensive to pay for the promotion. You will also spend a lot of time responding to inquiries and handling bookings.

You might even need to hire people to take care of these for you.

Therefore, another amazing reason why you should own fractional property, is that you do not have to handle all the above. The best part is you can also rent out your fraction when you’re not using it. although you do not need to.

Fractional ownership of property allows you to diversify investment

This kind of property ownership allows you to use money that would have otherwise been spent on owning and managing a single holiday home, on other investments or more fractions elsewhere. Spending your money on different vacation homes gives you the option of spending your time in a different one every year or with each season. It also lowers your risk of investment as it exposes you to more real estate markets.

Today, fractional ownership is easy to get into as the entire process is well-coordinated and managed by a single company. These companies are often established by property owners or developers who set up legal structures before offering the fractions for sale.

With good legal advice and careful planning, you can start your journey to owning a holiday home today.

Got any travel questions, talk to us on our social media.Fractional Warehouse on Facebook and @fractionalwarehouse on Instagram. We also encourage you to look through our Fractional Warehouse website for more insights.

You can also start your journey to owning a holiday home for a fraction of the price by following this link.

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