What is Fractional Ownership? All the answers to your questions
The savviest property buyers are now opting for Fractional Ownership as a means to acquire luxury second homes at a fraction of the price. But what is fractional ownership? Described by the Financial Times as “a strikingly attractive and popular option” during a downturn, fractional owners maintain a five-star lifestyle and own equity in a carefully selected bricks and mortar investment.
So what is shared ownership to you? Fractional ownership is a title deed, legally divided, owned and shared by more than one person. A typical fractional property for example will have between 4 and 12 owners, with usage rights being allocated depending on the size of the fraction purchased. Usage rights are typically made up of either, or both, fixed or floating weeks, which are pre-allocated each year.
Fractional ownership is a financially sound move, enabling you to save over 75% on the cost of purchasing, running and maintaining a second home as this is shared with the other owners.
Absolute Fractional Ownership is our premier product and should not be confused with vacation ownership or timeshare which is also offered through our hugely successful holiday club, Absolute Destinations. Although both schemes are based on shared usage systems, the fundamental difference with fractional ownership is that you own a fraction or share of the title (as opposed to only purchasing usage rights with our holiday club). You will receive a Certificate of Ownership reflecting your share in your ‘bricks and mortar’ asset and because you are an owner, you can decide to sell or upgrade your asset at any time, benefitting from the capital growth, or hand it down to your children. When you invest in a share of your holiday home you become a Premier Owner.
Fractional property ownership was originally introduced in the USA, however, due to the benefits for developers, resorts and buyers, fractional ownership is now being incorporated into sales programs throughout Europe and Asia.
Internationally recognized, the Absolute World Group is a leading developer and operator of luxury resorts, hotels and shared ownership projects in Thailand. Because we insist on great locations, partnering with the best architects and interior designers and ensuring our resorts offer the highest specification amenities, our owners are confident they are investing in an appreciating asset and an award winning product.
While fractional ownership in Thailand is a relatively new trend, the concept has been established in the US and Europe for over 25 years, currently the total value of fractional ownership programmes in the US alone is $US 3 billion. The Absolute World Group are pioneering Fractional Ownership in Asia Pacific and helping to educate the industry by founding Asia’s leading shared ownership conference www.Aocap.org, now in its seventh successful year.
As well as a collection of self developed boutique resorts, Absolute World Group handpicks partners from other leading global brands to implement exclusive development projects from initial conception to successful completion.
Thanks to our experience across many global markets and jurisdictions, you will always feel legally and financially secure. A further benefit is the ability to relax, knowing that our management company will look after all fees and maintenance – all you have to do is pay one easy annual charge.
Please do get in touch for more details on what is shared ownership and how to become a Premier Owner – we’re always happy to help.