FPA - FRACTIONAL PROPERTY AGENCY.
FRACTIONAL IS LOGICAL.
FPA, The FRACTIONAL PROPERTY AGENCY has been created to promote the sales of Fractional Property Developments in Europe.
Fractional ownership has seen a huge success in the USA over more than 10 years, not just for property, also for private planes, boats, cars and virtually all luxury items.
Fractional Ownership is NOT Timeshare – although the 2 are often compared:
The fundamental difference is that with Fractional Ownership you own the freehold of your property, with a limited number of other owners.
The Marriott Hotel Group have used Fractional sales in the UK for several years; from prestige apartments in Central London to golf apartments at St. Andrews.
The average use of second homes in Europe is less than 4 weeks per year: The property is often not as luxurious or as well situated as we would like and, there is the hassle of maintenance, insurance, security, cleaning, etc. etc.
Fractional Ownership was designed to resolve all these problems.
Fractional is good for a buyer:
- Asset appreciation via freehold ownership
- Minimisation of running costs in relation to usage
- Acquire a more luxurious lifestyle
- Professional management of the property and surroundings
- Potential income from rental of unused weeks.
Fractional is good for a developer:
- Increased profit per unit via a higher sales price
- Access to a far larger client market
- Insures a higher occupancy all year
- Creates a more viable management business
Fractional Ownership is also a potential solution for the sale of a large holiday property which is no longer required?
If you are trying to sell such a property, in any European country, we can advise on the simplest way to create a Fractional Company and sell the shares to a limited number of people.
This can be as few a 4, or as many as 26.
Developers of new properties will adapt the exact mechanics of a multi-ownership complex to suit the product.
The simplest structure is 4 or 8 week periods, i.e. selling to 12 or 6 owners, with half their weeks in High Season and the remainder in low season.
These weeks then rotate each year, allowing each owner to benefit from the most enjoyable seasons.
In most cases, the management company will offer a rental income for periods not used by owners; this can often offset the annual charges.
A point to note: All properties incur costs of local rates, insurance, maintenance, etc. and it is very important to understand the total liabilities of any property purchase.
Fractional ownership is in the form of shares in a Company – the exact structure and statutes will vary from country to country and we can advise and recommend specialist lawyers if needed.
If the property has a “commercial” angle, such as a hotel suite, the investment can also be accepted for a SIPPS.
FPA also offer classic residential properties for sale.
As with most mixed developments, there will be classic residential sales as well as tourism: The percentage of each will be decided by the local authorities and their need to increase tourism in the region.
Over 25 years in the French Property Industry has meant that we have seen it all – we hope.
The highs and the lows, the good and the bad, and all of which has given us the experience to help potential buyers and sellers.
Having spent several years selling Leaseback properties, we now feel that Fractional is the next logical scheme for ownership of a holiday home.
Fractional Ownership benefits from the refunding of VAT/TVA which is usually arranged by the developer – an immediate 20% reduction of the sale price.