subject: The time is now! [print this page] The time is now! The time is now!
Whether it is a slowing economy or the idea of shared ownership, the idea is catching on fast.
The general public often confuses Fractional Ownership to be Timeshare. Fractional Ownership and Timeshare do not fall in the same category; although fractional ownership shares some characteristics of the Timeshare concept the differences are significant enough to place Fractional Ownership in a category of its own.
Fractional Ownership is a real right, Timeshare is a usage right.
Timeshare is a vacation product for the broadest segment of the public, a wonderful concept which has allowed millions of families to vacation for a week or two in locations which might not have been accessible without it.
Fractional Ownership is a form of shared ownership, allowing for a couple of week's usage in different configurations and usage patterns. Ownership linked to the property or portfolio of properties.
Fractional ownership opportunities vary between one-quarter ownership (13 weeks usage) and onethirteenth ownership (4 weeks usage). The usage of which is usually controlled by means of a usage roster (on a rotational basis).
It has been established that fractional buyers have a definite desire for vacation home ownership, who hasn't? Although a large number of these fractional buyers may have the means to purchase a holiday home outright, they still prefer the benefits that fractional ownership has to offer. These buyers like the idea of their vacation home being managed and maintained all year round and share the upkeep and maintenance costs with fellow owners, therefore only paying for the portion they use (Diminishing their upkeep costs while maximising capital growth)
Fractional ownership has emerged as a rapidly growing alternative to whole ownership of luxury vacation homes. According to statistics, this area of ownership is growing at over 150% per year and is only in its infancy as a trend. This form of ownership provides services and amenities of the highest standards, while allowing the buyer to own a luxury vacation residence where price matches usage.
The rapid appreciation of real estate in high demand world class destinations has pushed the average price of a second home well into the millions of rands, making it difficult to justify only using it a few weeks a year. Rather than buying an entire home an individual can enjoy the sensibility and security of a deeded interest South African property market investors seeking to share investments in high-end properties can now boost their portfolios with a new syndication initiative.
This follows an international trend for investors to take fractional ownership of luxury assets, allowing them to spread the risk and responsibility of an investment, while retaining an appreciating asset.
