Fractional ownership is an alternative of buying a second home and only paying for the amount of time per year than one typically uses the home.
Unlike its predecessor Vacation Ownership or Timeshare, Fractional Ownership is sharing the real equity of an asset, and today the principle is being used in selling Jets, Yachts, Luxury Cars, and Properties.
Fractional ownership properties is a growing trend in second home selling, and has achieved over 1.9 Billion usd in sales volume in the USA in 2008 alone.
The system allows multiple parties to join together to enjoy the usage and equity in a single asset, typically meaning each sub-investor subscribes for share of one month a year in the house or apartment.
The selling technique and legal structure of this type of property is new in the region, and therefore My Property Cyprus has brought in the expert firm, World Class group to partner with in order to guide developers through this new and profitable process.
Profits form selling a fractional ownership scheme are typically 20% higher than that of a normal property due to a well marketed and structured product amenity system.
Today Europe has 91 projects under this scheme and experts predict that another 200 will be on line within the next 24 months.
There is a predicable 10 to 15 developers that have already expressed interest in introducing some form of this concept in Cyprus.
Cyprus has become a market whereby the second home market has firmly established itself, although demand for a normal unit sale has dwindled.
Some elite forms of fractional ownership allow for 6 to 10 independent users to share equity in a single property, while enjoying many of the benefits of typical home ownership and hotel hospitality, as well as equity in a real property, albeit a proportionate share.
MySmartSecondHomeShare has developed solutions for the major hurdles of a developer with no experience in this type of a product including ongoing property management solutions, by-laws of usage contracts, reservation requirements, maintenance, and investor default.
Through their alliance they have also established a UK lender for new end user purchasers who will be able to obtain finance for their ‘one month a year’ second home without difficulty, even in the current economic climate.
The new business unit will offer advisory services, marketing and sales systems, strategic panning, property evaluation and packaging, training, legal set up for the sale of properties, and a membership based marketing alliance to generate leads for sales. The new business partnership will now offer start up solutions for developers and hospitality companies wishing to reap the benefits of this new attractive product in the region.
Developers having any interest in adding additional sales of their unsold inventory should contact Michael J. Tolan, CEO of the new business unit for an initial free consultation SmartHomeShare@mypropertycyprus.com
