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Fractional Ownership - new trend in buying property in Spain |
| Written by Sadie Lund | |
| Tuesday, 20 February 2007 | |
Why Fractional Ownership is the New Trend in the Property Market
Investors are now heralding fractional freehold ownership as the best way to make a low risk investment with lifestyle benefits
CHESHIRE, UK (February 2007) – Healthy growth continues in property markets across Europe, swaying ever more investors to select bricks and mortar over the stock market to achieve a reliably profitable and secure investment. Indeed, with such sustained growth, properties in the most popular locations are now beyond the reach of the average investor. Fractional ownership is a concept that has long been popular in the United States, and the concept enables people to afford a stake in a variety of deluxe products including property, aeroplanes and yacht. A recent study by Price Waterhouse Coopers (PWC) predicts that 1 in 6 affluent households may buy into fractional ownership within the next five years. Co-ownership has recently been introduced in to the UK with a focus on properties in the lower end of the market, as the government provides a popular solution for would be first time buyers to finally achieve their goal of home ownership. The government’s widely publicised co-ownership scheme has increased public awareness of, and desire for, fractional ownership in the UK, and not just amongst those on a lower income. People are now recognising the exciting opportunities that are now opening up, and investors are reacting quickly to lead the way. One truly innovative such opportunity has been created by Cheshire based Andalucian Homes. Managing Director, Bryn Thompson, spotted a significant business opportunity in fractional ownership, as a solution to two issues currently faced by his clients. He explains ‘Spain has long been established as the preferred location for property investors, holidaymakers, second homers and relocators. On the one hand, continued double digit growth in the Spanish property market has meant that overseas investors’ budgets have forced them to look at riskier options in emerging markets. On the other hand, a recent surge in investors purchasing off plan with a view to selling on prior to completion has lead to an artificial over supply in the months leading up to completion. ‘Spanish Quarters’, which is quarter share freehold ownership, has been created as an attractive solution to both of these issues. Original investors can now sell three- quarters of their properties on, whilst retaining a more affordable Quarter allowing them to benefit from capital growth. Quarter shares of 13 weeks freehold ownership are thus made available to further buyers, creating a highly affordable opportunity for many to own a luxury property in a desirable location. Quarter shares of 13 weeks flexible usage are offered at a fraction of the price of the outright property, and are coupled with the option of guaranteed rental income, to further decrease any risk associated with investment. Additional benefits include a unique opportunity to buy in to a property at 2004 prices, when the original investor placed a deposit to secure the property off plan. With the deposit on the property paid, quarter shares can be 100% finance via UK or Spanish mortgage, as an alternative to cash, making entry level affordable to many more people. Andalucian Homes’ Spanish Quarters has received a flurry of interest since its launch in September 2006, and buyers have come from as far away as Canada. One client, Dave Williams, commented: ‘I have recently purchased two Spanish Quarters having enjoyed a two day trip with Andalucian Homes to see some superb quality developments. The idea of being able to own 13 weeks a year for roughly £3,000 per year, including all management fees, is hugely appealing to me, especially as I can offset this cost with rental income, and also benefit from long term capital growth.’ To find about more about this innovative opportunity, you can contact Andalucian Homes on 01625 444100, or visit www.andalucian-homes.com
/ends
About Andalucian HomesAndalucian Homes is Southern Spain’s leading independent home finder, covering off-plan investments and resale properties in the Costa del Sol, Costa Blanca, Granada, Costa Tropical, Almeria, Murcia, and Lakes and Mountains regions. Launched in January 2003, Andalucian Homes has sold over 250 properties to customers across the UK. The company’s success is based on its commitment to providing impartial, professional advice on finding, buying and owning a property in Spain. For investors, Andalucian Homes offers Spanish Quarters, a quarter share ownership scheme enabling the purchase of a home in Spain for the fraction of the cost, as well as a guaranteed rental scheme, with up to 10 years guaranteed rental income.
For further information visit www.andalucian-homes.com Press Contact: Sadie Lund 07785 987919 Email – This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
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