By Svenja Gernoth
Fractional ownership works like this: a group of individuals come together and purchase a vacation home, commonly under a company name (for tax purposes), with each person owning a percentage. That percentage entitles the owner to a certain number of days or weeks per year to use the property exclusively. In other words, fractional ownership translates to – a holiday at a resort you may have never had the opportunity of staying at otherwise!
According to Dirk Wilson, co-founder of www.fractionalownership.co.za, “Classic fractional ownership of property is shared ownership and exclusive usage of luxury holiday property. Your share value is directly linked to the value of the actual property, so you are likely to see capital appreciation on your investment. High-end fractions are similar to classic fractions, but offer a slightly enhanced structure, where you purchase into one or a portfolio of properties with flexible usage and added luxury hospitality services.”
Dirk goes on to explain the third and most extravagant type of fractional ownership he defines as “private residence clubs”, by noting that this option offers one a membership purchase into a resort environment, usually at a five or six-star level. This often includes services such as exclusive access to a luxury boat, helicopter, and concierge service. Exchange with similar resorts around the world is typically included.
“The beauty of fractional title is that it is open to anyone from the middle income level upwards and gives everyone the opportunity to own a piece of an amazing lifestyle,” says Henry Greyling, CEO of Seeff Fractional Ownership.