Words: Ashley Rigg
Published: 2nd August 2010
*Is this the future of overseas property sales?
Fractional ownership has so far failed to make the impact on overseas property sales that many predicted but this product could help change that..
Members only: Please Log In or Join to view this article
Source: Global edge
User Comments
We have tried working with fractionals here in Naples. The major problem is community approval. Just a small handful of Home Owner Associations would allow fractional property model in their community. One of the communities that allow fractionals is Lely Resort in North Naples and only in non-gated condo unit areas.
Sal Antsipenka,
Independent Broekrs Realty
Despite my belief that fractional is the way forward I do believe transparency has a lot to do with its potential success. This model is fundamentally flawed however as any client with a slight inquisative mind will work out that they are paying a lot, even for a 12th of a share of a Studio flat - it is a winner for the Agent/Developer however.
Am I correct in assuming this adds up to a studio flat being worth £216,000........(each fraction pays £150 per month for 10 years which means £18k per investor which then multiplies up)
Not a bad model and workable but it has to be more attractive to the investor and this is too expensive.
Fraction could be the future if the European marketplace trusts it.
James
James Dearsley,
Atlas international
In Puglia, region of Italy, to develop this market we are selling 10-months (sept-jun) all toghether at a special price of Euros 25K. For this small amount of money you will get a sea-front flat with direct access to the sandy beach, a double bedroom, bathroom, livingroom with open plan kitchen and balcony. We hope that this solution will increase the number of people who want to own overseas property at a little price.
Luigi Spano,
SIS Property and Tourism
Yes, this is something we are seeing more of in the Turks and Caicos Islands and we are about to launch a golf home with fractions starting at $99k
Simon Padgett,
RE/MAX ELITE
This is exactly the same as We are Home (part of Select Property based in Manchester) were doing earlier in the year and also with Barclays Bank. So I wouldn't say it was breaking news or a significant coup. However, that doesn't deract from the model being well put together!
Stuart Johnson,
Experience International
I suppose it could satisfy some clients but certainly not the sort who come to. Basicaly people come here to get back to nature and live off the land not looking for hi rise etc. I can't see me selling 1/12 shares in farmhouses.
Mark Adkinson,
Galician Country Homes