Fractional property ownership is a wonderful concept, born in the US and now in full swing across the globe this model of property ownership enables un-connected buyers to collectively purchase high end property. The structure is very simple, a limited by guarantee company is set up, its sole purpose is to hold the full title deed to the property on behalf of the fractional property owners (members). You become a member/owner of the company that holds title to the individual property and therefore, are directly connected with ownership of the 'bricks and mortar'. It is no different to owning a property outright in a company name. The only difference being you are owning a portion of the property as supposed to owning in its entirety.
The obvious advantage of this is your outlay will be minimal while still enjoying a luxury property investment that otherwise might have been out of reach. You will benefit from your share of the rental income as well as any capital appreciation realised. Another major advantage of this structure is that you can sell your fraction(s) independently at any time. In addition, all of the associated legal fees and taxes are built into the price, removing the usual closing costs on completion. Similarly, ongoing running costs are significantly reduced in line with the percentage ownership that you hold.
If you are only looking to spend a small portion of the year in your property and don't want the time consuming and often stressful job of managing your property while you are not there, then fractional property ownership is for you! It is also a great way to diversify your property portfolio and opens up a world of holiday options, owning luxury property without the full initial investment. You can own fractions in multiple high-end luxury properties for the same price as owning one average home.
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