If you want a home abroad but are hesitant to take on all the responsibilities, nowadays, there are alternatives to owning a vacation property outright.
Shared ownership options are readily available – this is where a developer buys and builds or restores real estate to a specific high standard, then splits it into shares, selling to a group of individuals who become the co-owners of a stylish vacation abode in a sought-after location. This model is referred to as fractional ownership.
One of the many advantages of choosing to buy your second home this way is that not only do you, in effect, just pay for the time you use, but you also get to share the yearly running costs with the other owners. With an average of 4-weeks of exclusive use a year, you’ll also benefit from no-stress property management services.
What Does a Property Management Company do?
Usually, fractional ownership property is purchased through a Limited Liability Company. With a fixed number of shares on offer, buyers can purchase their fraction and co-own the vacation home along with several others.
Amongst the main selling points of a fractional ownership property is that they come with a high real estate price tag and are of an exceptionally high standard. The philosophy is that you can purchase a share and not have to worry about the upkeep at all, simply turning up and starting your vacation in luxury every time.
No Stress Properties
To keep the properties in pristine condition, the management company will take responsibility for maintaining them so that they are impeccable both inside and outside. Tending to the tasks you would typically have to do yourself when owning a second home, they will also assist in managing the rental of the times you choose not to visit, giving you extra income.
Many people prefer to buy their vacation home this way as it removes the stresses involved with the upkeep of the property and means you get to split the annual running costs with the other owners.
How Does a Fractional Ownership Property Management Company Work?
In the initial stages, while the shares are for sale, the developer will usually form the shared ownership property management company. Once all the shares in the company that owns the property are sold, the owners can appoint a new management company if desired. Owners will be invited to attend an Annual General Meeting (AGM). On the agenda will be all matters to discuss, including a review of all costs and operating budget, and the setting of the budget for the subsequent year.
What Are the Benefits?
If you add up the time lost from your vacation days with getting your home-from-home ready for arrival and then again prepared for your departure, you can lose a few days on either side, for sure! And that’s if there are no significant issues to fix that you discover upon arrival.
Vacation time is precious and could be a reason why more and more families are turning to fractional ownership properties to meet their needs. The freedom of being able to rock up, open the door and enter your beautiful home without having to lift a finger is more than appealing. Immaculately clean with bedding and linen laundered, and with a few pre-requested essentials ready and waiting, all that requires your attention now is whether to take a quick swim or sit out beneath the sunshine and begin to unwind.
Any homeowner realizes that with buying a house comes the responsibility and costs connected with running it. Taking on a second home alone means extra work and expenses, but you will be dividing this expenditure and burden between a group of co-owners with shared ownership of the property. The property management company appointed will run your vacation home smoothly and efficiently, taking care of the running of the property so that you can relax from the moment you arrive.
10 Fractional Ownership Property Management Services
These include arranging and effecting:
- Building and property contents insurance
- Gas, water, and electricity utilities
- Legal and accounting costs connected with the Limited Liability Company
- Any local property taxes
- All housekeeping, including laundered bed linen and towels
- Pool cleaning and maintenance
- A fund for replacements and future decoration
- Administration expenses (available for review by owners)
If the idea of owning a home abroad for part of the year excites you, why not browse the stunning destinations the Fractional Group is listing right now. While owning a high-end second home abroad might not be for everyone, you can see why fractional ownership properties are still trending in 2022.