Management under Fractional Freehold Ownership Owner of a Fractional ShareFractional freehold ownership is an attractive property and lifestyle investment opportunity with potential capital gains.
Customers looking to put their money into high-end properties need look no further than Queenstown – the home of premium high-end property and the very best in lifestyle choices.
Buying a fractional freehold share in a property enables investors to experience the very best in holiday home ownership, without the responsibility of management or maintenance, and with the potential ability to earn income from short-term visitor stays.
Fractional ownership is widely accepted in many international markets as an attractive form of investment and ownership, and is especially suited to premium tourist destinations. It enables investors to invest in more than one destination, climate or country for year-round holiday options.
It also allows a customer to invest in a far more expensive property than they would otherwise be able to. For example, someone with $500,000 wanting a holiday home that they may only use 4-6 weeks a year can invest in a quarter share of a $2 million property giving them a far superior holiday home.
Key points to note with many fractional packages are:
- Proposals may be designed for two, four or more investors
- Each investor would have his or her own ‘Certificate of title’ for an undivided share in a property
- Investors sign a joint venture agreement with other owners setting out ownership rules
- Fractional owners may elect to have their property placed into an accommodation management programme (if one exists) or retain their property for their sole collective use
- Putting a property into a management scheme may have tax benefits
- It is not a timeshare - timeshare merely provides the right to use a property for certain periods of time. Fractional ownership gives owners a freehold title. The property has the ability to appreciate, it can be sold, left in your will, or put into a trust -- practically anything that may happen with a traditional freehold titled property.
