What is The Main Benefit of Fractional Ownesrhip? – How Does

11/15/2020 - 06:03

What is The Main Benefit of Fractional Ownesrhip? – How Does It Work?

Buying a property abroad can be an overwhelming experience, especially if you don't speak the language. Maintaining and managing a property abroad can prove even more so, as well as expensive. More and more people are questioning why they would put 100% of their available funds into a holiday property that they can only use for a fraction of the time. The collective ownership approach to buying property, also known as fractional ownership, reverses this process so that you would use only a fraction of your available funds to own part of a property where you can use 100% of your vacation time.

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I have found this idea to be very interesting and I know that it is much more common in Spain and Portugal compared to Italy, however talking to an Italian Estate Agent - he proposed the reason why it is not more widespread - he reckons that Fractional Ownership gives you the double whammy of disadvantages of costs to pay for maintenance for a very large property and disadvantages of not being able to go when you want to go i.e. it is booked by others in July and August. This particular Estate Agent reckons that Fractional Ownership works badly for the buyers. Interested to hear your views.

Hi and great to receive your comment and reply. 

You have highlighted a common mis-conception of Fractional Ownership voiced by many Italian estate agents. Unfortunately their interpretation of Fractional Ownership has evolved fro m the old time share concept whereby one only buys a period of time and that is a fixed period for as long as the purchaser has their time share, and the costs of maintenance are controlled by the time share  company and not the residents.

www.thepinelliestate.com have changed all of this. In their scheme the property is owned by an independent UK limited company and each of the [maximum] of 11 owners own a share in the company that owns the property - therefore they actually own an ASSET and not time.

This also benefits the owners as THEY control the management company looking after the property and each pay only an equal share of the annual maintenance costs. If you own 100% of a property you have to pay 100% of the costs even when you are not using the property.

Most importantly the share owners use an annual rotating occupation or entitlement calendar thus providing for all to have the opportunity to choose whatever week/s they wish, and the priority rotates every year spreading the equitable fairness of choice of weeks.

This new way of fair fractional ownership seems to provide all of the upsides and none of the downsides - take a look at what one of the owners has said here 

https://youtu.be/SvZhPsZMdI8

 

 

 

In the old days, it was called timeshare.  There are very few benefits to fractional ownership unless you get the 2 weeks around ferragosto.    You will still have a place that feels like a hotel, but has a very low resale value and  high maintenance costs.    It would be cheaper to just book your hotel or holiday home for 10 years in advance for the weeks you want.   

Hi and thanks for your comment.Timeshare is exactly what the words mean - SHARING time.

The Pinelli Group have changed that and fractional ownership with them means exactly that - the OWNERSHIP of a real luxury asset, and you share the ownership with likeminded others - a maximum of 12 owners 

Most importantly the share owners use an annual rotating occupation or entitlement calendar thus providing for all to have the opportunity to choose whatever week/s they wish, and the priority rotates every year spreading the equitable fairness of choice of weeks.

This new way of fair fractional ownership seems to provide all of the upsides and none of the downsides - take a look at what one of the owners has said here and how the properties are real homes and not sterile hotel copies

https://youtu.be/SvZhPsZMdI8

The beauty of owning a house is the fact you have your own belongings there and don’t have to travel with them back and forwards. Selling is not hampered by having several other users to be considered – sounds like a "timeshare" type nightmare to me too.

Steve, a VERY important point and who wouldn't want there personal possessions and belongings in their second home. 

That's why we maintain a secure private owners store facility at each of our houses so that each owner can indeed have their OWN belongings for when they are at their house and when they leave they are carefully placed into the secure storage for us to bring them back out when they next return. All part of a very unique personal service for our owners