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Fractional Ownership - What are the Advantages
What are the advantages
1Fractional Ownership is able to increase sales numbers across all properties in all price bands. Statistically lower price properties attract most interest from a sales perspective. Interestingly it’s the more expensive properties that the majority of purchaser desire and dream of owning. Their budgets dictate a compromise and the purchase of a lower priced property. The net result of this is slower sales of properties in the upper price bands.
2Fractional ownership makes all properties so much more affordable as the properties go to the market up to 87.5% less than the full ownership price. This brings people to your development that may well not be able to afford any purchase but also gives the opportunity of moving people from the lower price bands into the more difficult to sell upper price bands. Fractional Ownership matches people’s dreams and desires with their budgets. If their budget is €50,000 for a one bed apartment, they can now buy a 1/4 share of property that is €200,000 for a 3 bed villa. If their budget is €100,000 for a two bed apartment, they can now buy a 1/8 share of property that is €800,000 for a 5 bed luxury villa with a pool.
3Sales achieved via an agency network are going to require greater commissions to be paid for Agents to take on your fractional properties. Our Fractional Ownership Model dictates that 10% of the fractional uplift in value is added to the Agents existing sales commissions. A well trained, well motivated, well paid agency network, whether its the developers or our own, can be achieved with our Fractional Ownership Model, which are the key ingredients for successful sales.
4It is important that our developers and their selling agents have the full support not only to implement a fractional sales strategy but to ensure that this support is ongoing through the entire development process. We have two main offices in the UK and Bulgaria with affiliate offices in Spain, the USA and Canada.
5As important as the fractional model are the routes to market. These can be existing developer sales, an agency network, use of websites, advertising, brochures etc. Fractions Abroad Ltd employs it's own in house web team who have just launched our Property Portal where all properties adopting our Fractional Ownership Model will be uploaded. The fundamental attraction of this website for purchasers is that all fractional properties on our property portal will have the same fractional model at its core no matter the country, development or property. The website will educate purchasers of the benefits of fractional ownership and of the Fractions Abroad Ltd model. They will then be able to research the properties on the website and make their choice based on the normal parameters that they would for a traditional full sale, usage, affordability and desirability.
6At the heart of any fractional model are the usage calendars. We have taken great care in producing calendars that actually reflect peoples use. One calendar cannot be used on properties in all locations. European ski will have different usage criteria to Canada ski. Beach and golf will be different again. The Fractions Abroad Ltd model provides four calendars to choose from that best suits the location. If the usage calendar is inappropriate then sales will suffer dramatically and the fractional sales initiative will fail.
7Developers can download fractional brochures and sales materials from our website to promote fractional ownership to their own clients. It is important that developers or their agents can give potential purchaser information on the fractional model as well as property brochures. Rather than developers spending time and money on these promotional materials we provide them for FREE. Once comfortable with fractional sales bespoke brochures can be produced by the developers from the extra income streams.
8Fractions Abroad Ltd will be attending shows to promote fractional ownership and the Property Portal Website. We will be negotiating with developers to see if they have desire to co host a stand. If we get developers from different markets and different countries we may well be able to have the most impressive stand at the show further educating purchasers to the benefits of fractional ownership.
9Fractions Abroad Ltd will be liaising with the trade press to promote the advantages of fractional ownership and our Property Portal website with relevant magazines and newspapers in an effort to educate the market in all medias.
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