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Jaco Jordaan has 7 Published Articles

Africa,
Western Cape,
Cape Town,
112 Buitengracht Street,



Fractional Ownership

Posted On : Jul-08-2010 | seen (493) times | Article Word Count : 527 |

More and more people are realizing that the best solution for owning a second property is Fractional Ownership.
WHY FRACTIONAL OWNERSHIP?
(THE BENEFITS OF FRACTIONAL OWNERSHIP)

More and more people are realizing that the best solution for owning a second property is Fractional Ownership – the benefits are endless…

* Nobody makes use of a second property or holiday home all year round. Fractional Ownership offers you the perfect solution - only pay for what you use.
* It offers more affordable ownership in exclusive leisure destinations as costs are shared. Majority of people would otherwise not be able to afford a second leisure property.
* You can invest in more than one leisure property in different locations at the same cost as one single property.
* Conventional property investment would cost 13 times more.
* Leisure destinations, because of demand, increase in value much faster than average residential properties.
* Minimal capital outlay whilst enjoying maximum benefit in different locations.
* You don’t have the sole burden and cost involved in maintaining and managing the property, as this is shared between all shareholders and taken care of by someone else.
* You can earn rental income for your own sole benefit if weeks not utilized are rented.
* You can exchange your time slot to suit your individual needs and requirements.
* Limited security concerns as result of maximum usage and higher occupancy, and secure estates / developments.
* You can sell your share in the property at the current property market value at any time.
* You invest in property with capital growth.
* Limited surety for your portion only – not the entire value of the property.
* Own your holiday destination as opposed to renting it.

You get more for less…

IS FRACTIONAL OWNERSHIP SIMILAR TO TIME SHARE?

NO!

The only similarity is that more than one party is involved in the property… However the advantages of Fractional Ownership over timeshare are distinct and far more superior.

* Timeshare buys you time – Fractional Ownership buys you an appreciating asset.
* With timeshare you never own the property or become a shareholder.
* Property value increases and so does your shares within Fractional Ownership.
* Fractional Ownership unlike timeshare is aimed at a more up-market sector.
* Timeshare decreases in value whilst Fractional Ownership accumulates capital growth.
* Fractional Ownership shares can be sold at any time – no contractual period.
* With timeshare demand is higher than supply – availability is a serious concern.
* Timeshare includes brokerage commissions of up to 60%. Fractional Ownership attracts standard sales agents’ commission of approx 7%, but like with any property transaction is paid by the seller.

Article Source : http://www.articleseen.com/Article_Fractional Ownership _24801.aspx

Author Resource :
Jaco Jordaan : writes about Shared Ownership, Property Investment & Fractional Ownership in Cape Town region is the best possible investment option available.

Keywords : fractional ownership, cape town, property investment, apartment rentals, property,

Category : Finance : Real Estate

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