Fractional Investment and Ownership
Due to prevalent economic downturn, which is the worst since 1930, and limited cash resources, there are few people or companies willing to openly invest in high end properties. For all buyers stuck finding dispensable cash for investment, fractional investment and fractional ownership of property provides you with the ticket to be part of the band wagon for high end property investment by raising a fraction of the cash of actual worth of the property.
Properties Discounted can help you to make the most suitable investment with you. Our dedicated team know all about Fractional Investment and Fractional Ownership, making the decision easier for you.
So how does it work?
How does Fractional ownership work?
Fractional ownership refers to the legal sharing of a property with multiple owners. The property title is divided in a manner that each owner has an individual freehold title. This title can then be mortgaged or sold without affecting or needing approval from other owners. Fractional investment in property allows the shared owner to use the property a set number of weeks per year on a rotating basis.
It is an inspiration that caught attention from the Aircraft industry where sharing ownership of an airplane is a better idea than completely owning one, giving you the flexibility to draw tax benefits as well as deferring long term associated costs.
The growing popularity of fractional ownership and research in the property market suggests that fractional investments are a lifestyle decision rather than a traditional property investment that might have the high potentials of high appreciation and positive outlook on cash flow.
With fractional investment one can easily buy a property and allocate the shares between the investor based on the percentage of investment for example if 4 people buy a property for £1,000,000 then each investor would be a quarter owner, having a share of £250k each. The buyer can fully enjoy the right of complete ownership this way with your name mentioned on the structure and share certificate of the property. At Properties Discounted we provide a comprehensive service to help you make a sound Fractional Investment, one that will perfectly suit your lifestyle and investment needs. So it really is possible to buy luxury property.
What are the risks of fractional investment?
The fast developing market for fractional ownership draws its strength from the aspiring investors limiting their capital risk especially by investing in luxury properties. But the concept is still new for Europe and especially in Britain when the market at large remains unregulated. Buyers should be even more cautious if the fractional ‘investment’ is presented by a company whose products are unregulated by the Financial Services Authority in the UK or equivalent worldwide.
It is also worth mentioning that fractional investment by a United Kingdom national cannot be included as part of a Self Invested Pension Plan (SIPP).
This is where Properties Discounted can help. Our team has extensive knowledge of the property market. Our experts will take all the risk out of investing in a fractional investment. Meaning you can fulfill you dreams and buy luxury property.
What are the benefits of fractional ownership?
There is more to having a luxurious property than just money. The fractional units are used by buyers as perks for their business clients, as a family getaway or the locations can be traded for one’s share of time in an exotic location anywhere in the world.
For some people, fractional investment makes a lot of sense as the key to success to this trade is “Timing”. If one has done it just right it would end up giving you a potential profit in future sales providing the pleasures of luxury in all the time you owned it. Properties Discounted know the market inside out. We will help you to find the best fractional investment for you, one that will suit your lifestyle AND bring in a potential profit. We take all the risk out of the investment by ensuring all the agents are fully vetted and legitimate, making the process hassle free for you.
