We are giving the sales networks the tools required to combat the current economic issues that are restricting sales and to maximise the desire that still exists in the market place. Fractional Ownership addresses the majority of the current issues purchaser will be facing and if used correctly can be a powerful aid in getting sales back on track.

We provide point of sale materials to help you educate clients and part of this material is a Fractional Brochure that can used to guide clients through Fractional Ownership and be given to them to take away. All marketing materials can be branded with other company details in association with ours.

What is Fractional Ownership

Clients may mistake Fractional Ownership for a Private Residents Club, Points Club, Timeshare etc. You will need to explain that this is not the case. The fundamental difference with Fractional Ownership is they actually own their respective share of the bricks and mortar and not just the right to use a certain week. With our model we have targeted the majority of purchasers that are looking for a lifestyle purchase and our model dictates a maximum of 8 shares per property.

With other structures the underlying real estate value may well be inflated by 400% where as with our model the real estate value is raised by only 20% which reflects great value for money for purchasers. Purchasers need to be assured that they are not buying into a property at such an over inflated level that it would reflect bad value for money. Fractional Ownership allows purchasers to sell their Fractional Share at any point in the future and benefit from any increase in the real estate value. Timeshares are notorious for having little or no interest when they are placed on the resale market.

Cost Of Purchase

The initial financial outlay for a property is the governing factor as to where and what a purchaser is able to commit to buying. The more desirable or the larger the property the more expensive it will be. Using our Fractional Ownership Model a purchaser can buy into your developments at a hugely reduced entry level price with probably no significant impact on the usage they would be able to take in the course of a year. Clients that are already keen on a development can be shown how they can use our Fractional Ownership Model to buy into a much larger property. Most purchasers will dream of owning the 3 bed villa with the pool but have to buy the apartment due to financial limitation. They can be shown how they can upgrade to the larger property and enjoy the benefits of ownership and use but still be sharing the annual costs.

You may have developments in different locations, a beach and a golf development. You may have developments in different countries. Using our Fractional Ownership Model a purchasers can use their financial budgets and buy shares in two, three or four locations, a Ski property for the winter season and a beach property for the summer. Our Fractional Ownership Model allows a purchaser to fulfil their wants and desires while at the same time getting your sales numbers back on track.

With the current economic climate many potential purchasers are going to worry with the financial implications of a full ownership purchase. This and the availability of credit is why sales have been drastically reduced since the credit crunch. There is still the desire to buy but clients are being very cautious about what they spend and what on. You can demonstrate to clients that they can still have all the benefits of owning a property abroad but reduce their financial outlay by up to 87.5%. Once clients understand all the benefits that Fractional Ownership gives them the sales agent networks will once again be able to turn leads into valuable sales.

Cost of Ownership

On top of the initial purchase price will be the cost of furnishing the property. All properties sold with our Fractional Model will be fully furnished with all the furniture, beds, linens, curtains/blinds, TVs, crockery etc. Not only does this take away the headache of getting a property furnished for purchasers but these costs are split between the Fractional Owners significantly reducing their financial outlay for what are essential items. As the furniture packs are to be very comprehensive purchasers will be able to rent their property if they so wish knowing that their home will be furnished to the standards required.

Ongoing costs can include insurances, local taxes, external maintenance fees, utilities, full management service for weekly cleaning and changeovers if rented out etc. All properties sold under our Fractional Model come Fully Managed and these costs are calculated by the management company and charged to the owners on a shared basis. This takes away a purchasers need to find a management company or have the problems of trying to manage the property themselves. Purchasers can now own a property abroad but enjoy annual costs up to 87.5% below that if they owned the property on a traditional full ownership basis.

Downtime

Purchasers are now considering how much use they will actually get from their overseas property and comparing this to the purchase and annual running costs. Purchasers are now concerned that their properties will stay empty for long periods of time especially if it's in a seasonal resort. This downtime is significant when compared to the purchase and annual running costs and is yet another obstacle to overcome. Traditional full ownership ties up large amounts of capital, has full annual ownership costs for something that clients will not have the time to use more than 6 to 10 weeks per year. Buying a share of a Fractional Property gives them up to 12 weeks use per year. If they need more weeks then they have the option of buying more shares in that property or share in another of your developments. If they don't use all the time they are sure to know enough friends or work colleagues who will rent the remainder off them as they will only have a small amount of weeks to rent out. This negates the pressures of finding lots of rental to cover the downtime and annual costs. It also removes the need for a rental agent taking a healthy cut of their income.

Management

We have already discussed that all properties sold with our Fractional Model have to be fully managed on behalf of the purchasers. Purchasers can be shown how this management structure will take away the headaches of having to look after their property abroad. The homes are cleaned prior to each client's holiday period, the inventory of furniture etc. maintained, any breakages replaced, repairs undertaken swiftly, scheduled maintenance organised and carried out in the calendared maintenance weeks, bills paid from the management fees and a schedule of income and expenditure supplied to each owner. Someone has to be responsible for this and this can be a major issue trying to do this themselves if they don’t live in the country. When buying with our Fractional Model this is all taken care of for them and at a fraction of the costs of a traditional full purchase.