Fractional ownership within the property sector is booming at present, and is starting also in Greece. Simply because so many people would like holiday homes, but don't want the hassle and expense of owning real estate they can only use a few weeks at a time. However, they do want the value, equity and other benefits associated with property ownership. This is where fractional ownership comes in the form of fractional real estate.
Like timeshare, you are entitled to stay at an apartment or town house for an agreed period every year. But unlike timeshare, you own a freehold share in the property.
The way you use and can exchange your weeks is like timeshare, but with timeshare you are simply purchasing time in a resort. With fractional ownership you are effectively buying an equity stake in a property. In case you want to sell, there is a clear "exit strategy" to realize your share of the proceeds of sale. Unlike timeshare the property can increase in value and can be sold for you.
If you're thinking about investing in a fractional ownership property, here are the top 25 questions to ask the vendor about the property you're considering (source: fractionalLife):
Is the property offered "deeded property"?
What percentage fraction is being offering?
Are the weeks offered fixed or variable?
Is the building completed yet?
What percentage of the total units have been sold to date?
How many price increases has the development had over time?
Exactly what does ownership include?
May I see a printed list of the fees you charge?
If finance is required, how do you recommend I finance the purchase?
How long has the company been operational?
Do you mind providing the contact details of some customers who have purchased fractional interests in your properties recently?
Can I test the reservation process and visit a property within the club's portfolio before joining?
If I decide to purchase a fractional share in a property, can I change my mind, and if so, by when?
What is the process if I wish to sell my fraction in the property at any time in the future?
How does one book for popular holiday periods e.g. school holidays, and what booking system is in place e.g. first come, first served and is there any priority amongst owners?
What additional services does fractional ownership cover (e.g. concierge, car rental, airport pick up / drop off) and are there any extra costs?
Are there any additional fees or charges applicable in addition to the fractional property purchase?
Does the company have plans to raise prices – if so, when and by what rate and what factors would influence such price increases in the future?
Are photos and floor plans available for the properties and are their any ownership rules – e.g. are pets and is smoking allowed?
How are the properties furnished (what sort of style and decor, fixtures and fittings etc.)?
What other amenities can I expect at each resort – e.g. access to vehicles, golf cart and professional access (where applicable?)
What is the average amount of days a member currently uses for the plan I'm considering and can you rollover any unused days to the following year?
Does the property complex partner with travel agencies, jet, and yacht services or have access to any other assets?
Who owns the properties at present and what happens if the property company fails?
What do you believe are the strengths and weaknesses of the company and properties available and why should I ultimately buy this one in comparison to the choices available?
We at Ktimatoemporiki Crete are presenting these questions to all vendors wishing to sell fractional property being able providing our clients comprehensive information.