WHAT IS FRACTIONAL OWNERSHIP?

Wikipedia offers the following information - Fractional property ownership

Fractional ownership simply means the division of any asset into portions or shares. If the "asset" is a property, the title or deed can be legally divided into shares. In certain instances this is done by creating a "mezzanine structure", i.e creating a company which owns the property then allowing multiple owners or investors to own shares in the company. Those shares can then be purchased and owned by more than one individual. The reasons for a "mezzanine structure" can vary. Two common reasons are to allow transfer of shares without the need to reflect changes on the title or deed to the property, and for tax benefits.

Shared ownership of the property and its deed will also entitle shareholders to certain usage rights, usually in the form of weeks. Conceptually, Fractional Ownership is not the same as Timeshare. Fractional Ownership affords much of the freedom and usage benefits offered in timeshare, however, the fundamental difference with fractional ownership is that the purchaser owns part of the title (as opposed to units of "time"). Therefore, if the property appreciates in value, then so do the shares. As with whole ownership, fractional owners can sell whenever they deem necessary or prudent, releasing the capital growth from their "bricks & mortar" investment.

Real property

The practice of joining together with family and friends to share ownership of vacation property has been around for many years. But the fractional property industry started in the US in the Rocky Mountains ski resorts in the early 1990s. These first fractional developments recognized that people did not want to buy whole homes, which they would only use for a few weeks a year in the mountains. According to research firm Ragatz Associates there were over 250 fractional developments in North America in 2006 and fractional properties can now be found throughout the world.

Outside the USA a non-commercial form of fractional ownership has been in existence for several decades. In this form, otherwise unconnected individuals (rather than family or friends) form private syndicates to purchase, for example, vacation property or boats. These syndicates operate as private member groups with small numbers on a non-profit basis, generally just sharing expenses and usage. These groups can involve assets ranging from modest apartments or condominium type properties to multi-million euro / dollar properties, and leverage their ability to make collective purchases of additional assets such as boats or vehicles as additional facilities, while retaining control entirely within the membership of the group.

The popularity of the term fractional ownership has caused extensive rebranding in other industries where similar concepts, such as real estate timeshares, were already well established.

Fractional ownership divides a property into more affordable segments for individuals and also matches an individuals ownership time to their actual usage time. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property. Occasionally, the property is sold after a pre-determined time, distributing the relative proceeds back to the owners. A few private owner-groups have developed highly sophisticated usage allocation schemes and other features based on the principle of attempting to get as close as possible to the flexibility of individual ownership, and only compromising this to the minimum extent necessary to accommodate multiple owners. In such schemes the basic agreement is between the members themselves, whereas in most commercial fractional ownership schemes, the owner's principal relationship is with the property developer and/or promoter of the scheme.

As you can see from this 'Fractional Ownership' is not a new idea but a new idea here in Providenciales! What a fantastic opportunity for certain families for a variety of reasons. The Villas being offered here in Providenciales are luxury ocean front homes in a prime area - Sapodilla Bay and Ocean Point. It would be expensive and time consuming to attempt to do a home like these on your own. Then you have to maintain the property! Many families would only be using the property for a few weeks a year and renting it out or having it sit there for extended periods is a headache.

Elite Destination Homes, as a company, has four properties here in Providenciales in place, two are sold out and the other two are just coming 'on stream'. They have the local concierge service staff in place and trained - they have the rental program in place and working and they will do the job right! Elite has the experience to fit the right families together in the right property for a truly Elite experience. As they say 'you will be a guest in your own home'!

Some people do not want 'strangers' using their home. Elite can address many of those concerns. For example each property has 'owner lock-up' facilities where your personnel things like linens, toys or even your art work is stored and put out for your stay. Elite considers the small ownership group which is usually just five families as a 'family' and they take care to invite only owners that share similar values.

When you want to visit your home the Elite concierge team ensures you have a hassle free memorable experience. The concierge team will do your shopping so when you arrive the fridge is stocked. They arrange your activities, rental cars, massages, chefs, boat - you name it they do it! When you arrive you are on vacation and not worrying about opening the house up, repairs and then closing up again. As they say - 'you are a guest in your own home'!

THE DETAILS

Each of the two properties currently offered are 4 bedroom and are ocean front with private swimming docks and beautiful infinity pools. There are extensive out door patio areas with gazebos, BBQ areas, hot tub spas spilling into the pool and lush landscaping for a tropical feeling. These are beautiful properties!

Villa La Percha is offered for sale in five units priced at $900,000 each. Villa Twelve Palms is five units priced at $600,000 each. For this you receive approximately 20% of the equity of the home and 2.5 months use!

It is always a good idea to save the best for last! Elite manages 29 properties around the world and is expanding. The Elite concierge team will help you arrange an exchange with other owners in the Elite family. The portfolio of properties and destinations is expanding rapidly and currently includes Paris, NYC, Naples Florida, Colorado, Jackson Hole Wyoming, Los Cabos in Mexico, Costa Rica, Hawaii, Minnesota, Lake Tahoe, La Jolla California, with future properties in Tuscany and London coming soon.

All sounds interesting! We hope so and we would like to help you to start enjoying vacation time the right way - Elite Destination Homes - finally the right way to own!