By Tina Andlaw

Have you ever dreamt of owning a luxury holiday property but have neither the money to buy it nor even the time to enjoy it? Fractional Ownership has long been popular in America as the ideal way to “have it all” by enjoying ownership of a property you might otherwise ill afford. Needless to say, the principle is now fast catching on in Europe and other worldwide destinations.

If you fall into one of the following categories, Fractional Ownership could well be for you:

• You are willing to part-own a property under a carefully managed system.
• You are looking for a second home but don’t want to or cannot use it for much of the year.
• You would like to invest in a holiday home but cannot afford 100% of the cost.
• You wish to avoid the expense of a full mortgage, upkeep, insurance and taxes for a property you don't use more than a number of weeks a year.

By definition, Fractional Ownership is the collective ownership of an asset, usually one with a high monetary value such as luxury property, whereby each owner literally owns a fraction of the property. The system has also been applied to aircraft, luxury cars and yacht ownership, thereby allowing owners to get the most out of their assets by purchasing only the share (or period of time) they require from them. In the case of property, share holders (owners) can enjoy the comfort of a stunning holiday home that they own, while cutting down on costs and avoiding the need to reserve a cramped hotel room or timeshare apartment.

Fractional ownership works best when it offers the opportunity to buy partial ownership of a quality, substantial home in a first-class resort area. In this way, it is an ideal vehicle to acquire a share in something that would otherwise be financially out of reach.

Usage of your property is normally allocated to the shareholders by means of a carefully formulated ownership scheme with all running costs divided amongst each of the shareholders. These properties are typically divided into various periods of time each year to suit the owners requirements but a percentage of the property is physically owned by you as a shareholder of an asset-sharing company. Unlike timeshare ownership, each fraction is actually owned outright by you and you are free to sell or rent it out whenever you so wish.

Many people regard this type of ownership as an excellent way to avoid the hassle and much of the expense and complications involved in the buying process of an overseas property, let alone the maintenance, which is often handled as part of the Fractional Ownership deal. Fractional Ownership companies will normally take care of all your legal requirements, including paperwork and licenses, as well as see to the ongoing maintenance of the interior and exterior of your property. Not all deals offer exactly the same so it is important to shop around to find the package that best suits your individual needs.

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