Stunning 1 bdrm, Tenerife, fractional ownership, 59900 euros

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This topic contains 11 replies, has 6 voices, and was last updated by Profile photo of Anonymous Anonymous 3 years, 3 months ago.

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  • #57237
    Profile photo of Anonymous
    Anonymous
    Participant

    For sale by owner: Fractional ownership, panoramic ocean views, 1 bdrm, 80 sq.m (860 sq.ft), terrace (west-facing 14 sq.m), 59,900 euros.

    For full description, photos, and contact info visit our website:
    http://www.tenerifevacationhome.com


    For sale is a modern, tastefully furnished, and well equipped one bedroom apartment on the third floor of the ocean facing wing of the El Marques Palace property. The development of 48 apartments is located on the warm and sunny south west coast of the Island of Tenerife, and is imaginatively and elegantly designed with high standards of construction. It is well managed and maintained by the respected Novacorp Group with sophisticated and experienced standards of service. The apartments may be reached by stairs or lift and are wheel chair friendly.

    * 1 Queen Bedroom, Convertible sofa, Sleeps Four
    * Open Plan with Sea Views
    * Heated Common Pool, Children’s pool, Snack Bar
    * Enclosed parking available
    * Reception, Onsite Management, Security
    * Maintenance Fee approximately €80 per month for 12 months

    Note: Some people think this is the same as a timeshare – it is not. It is a fractional ownership, which is becoming increasingly popular in Spain. You will hold full title with yearly occupancy of your property early January through to early March each year ongoing, as well as have the option to rent or sell at any time. You enjoy the benefits of deeded real estate along with worry free managed ownership.

    About the Owners: We are a Canadian couple who purchased apartment #222 at El Marques Palace in 2008 and have enjoyed many years at our vacation home. We have not been disappointed for a moment. Shared ownership has been hassle free and worry free. We are now selling our property because we have become enchanted with the people and places and European lifestyle of Tenerife, and now that we are fully retired, plan to live on this heavenly island full time. The weather is perfect and warm every month of the year.

    For full description, photos, and contact info visit our website:
    http://www.tenerifevacationhome.com

    We will be happy to answer any questions you might have about the property and our experience with it.

  • #114708
    Profile photo of Anonymous
    Anonymous
    Participant

    Sounds like timeshare to me but ……….. you may have bought into the asset so extraction is going to be more difficult.

    Best of luck ….. given the current climate.

  • #114709
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    The ownership appears to be 1/6 (2 months), but, if I am understanding the post, the maintenance is monthly: €80 x 12 = €960 annually for each 1/6 owner, or €5,760 annual maintenance all owners combined. I see that parking is not included – are there some other amenities not disclosed?

  • #114710
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for your interest!

    The ownership appears to be 1/6 (2 months) … … … are there some other amenities not disclosed?

    Our annual residence in the apartment follows a calendar which starts between Jan. 2 – 8 and runs continuously until March 6 – 12, depending on what day/date the new year falls. The apartment is fully managed so all issues such as taxes, insurance, general maintenance are taken care of and creates a worry free environment when you are there or away.

    Best of luck ….. given the current climate.

    Hi Mike, are you saying that you think the price is wrong, or do you think there isn’t a market for it?

  • #114711
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    Sounds like timeshare to me but ……….. you may have bought into the asset so extraction is going to be more difficult.

    No, it’s not a timeshare. There are significant differences between timeshare and fractional ownership:

    –Fractional ownership can have up to the maximum the number of parties (individual or couples) allowed by law to be listed as owners on a property deed. In most countries that is 4 which is why fractional ownership is often advertised a 1/4 ownership. In Spain the maximum is 6 and here at El Marques Palace the ownership was divided into 1/6s or two months. (Initially that worked well for us, but now we are able to spend much more time here).

    –Timeshare is a contract for right of use or access to a property for a temporary period of time. One doesn’t have ownership rights under law (sort of the difference between renting and owning). Whoever owns the timeshare property can have as many timesharers as they want. Often with contracts for use or access divided into weeks or 52 timeshares. Although, I suppose, one could have 365 timeshares like a hotel. Also if the property owners of a timeshare go broke or get into some other property difficulty the timeshare contracts, I believe, are worthless. With fractional ownership as long as things like the taxes are paid one still owns the property and in any event, any eventualities have to be handled through property law which is more protected than individual contracts.

    I’m curious, what do others think, do you perceive it as a timeshare?

  • #114733
    Profile photo of Anonymous
    Anonymous
    Participant

    @SunAndSand365 wrote:

    I’m curious, what do others think, do you perceive it as a timeshare?

    Well you don’t own the property outright and it’s shared with other owners. That essentially means you can’t simply stay at the property on a whim whenever you choose and you also can’t leave all your personal possessions lying around the place when you leave. You also couldn’t decide to add a new decor when you felt like it, or buy a new corner unit to hold your DVD collection.

    So yes it’s time-share in all but name.

    The other issue is the price and the monthly community charge. 6*59,900 = E360,000 (give or take) !!! I did read correctly it was a 1 bedroom apartment. I am not really familiar with prices on the island but this must be a mistake. You can buy 5 bedroom quality villas outright on the mainland now for this sum.

    Also which has been highlighted is the maintenance charge. I own a 3 bed apartment on the mainline. 3 Swimming pools, padel court, children’s play area, video surveillance, numerous gardens and landscaping, lift (it’s only 3 floors) and I pay 60 Euros a month community. Your community equates to 480 Euros a month without fractional ownership.

    Sorry this is not to be critical, many people have lost substantial amounts of money in Spain through poor property purchase decisions, myself included. But the figures you quote for both principal cost and community charges don’t reflect the economic situation in Spain.

  • #114749
    Profile photo of Anonymous
    Anonymous
    Participant

    No worries, I appreciate your input… and it makes me realize that perhaps we are not marketing this correctly.

    Well, for one thing, timeshares are typically about 1 week per year, shared amongst many people. You would agree that is quite different than having 4 or 6 owners?

    The property we are selling is for someone who wants to own vacation property, but doesn’t want to (or can’t afford) to buy a top-quality property outright, and deal with all the associated expenses, maintenance, etc. year round. And the fractional ownership avoids many of the pitfalls of the timeshare schemes.

    Where do you think we should look to market our property – anyone have any suggestions?

  • #114767
    Profile photo of Anonymous
    Anonymous
    Participant

    I would market it through the normal channels, but to be honest the market is dead, it simply doesn’t exist. Personally, if you can afford to do so I would hold onto it and use it for the original intentions that you bought it for.

    I have my property on the market, it has been advertised for 3.5 years and not one single person has contacted me. It’s front-line, well constructed and one of the upper market complexes in the resort. When I originally place the advert my apartment was the cheapest by 50,000 Euros in the complex. Over that 3.5 years others apartments have reduced in price to below mine. I reduced my apartment price by 50,000 Euros in late late summer 2012 and again it attracts no interest. I must once again add that my complex is one of the best in the resort.

    I have no need to sell financially, and for me the price reflects the minimum that I would be willing to let it go for. In real terms it’s slightly below the price I paid almost 10 years ago.

    Not the news you want to hear, but a property has to be substantially below market value (and I mean the real market value that is probably 50~60% below peak, not the 30% that banks and a lot of owners seem to think) to stand any chance.

    I would imagine the fractional ownership properties will be hit even harder in this climate.

    We have all been affected by this crisis and those wishing to sell (me included) are literally screwed. This forum generally describes it the way it is, which can seem confrontational. We’re not, we are just really telling how it is.

  • #114771
    Profile photo of Anonymous
    Anonymous
    Participant

    I have my property on the market, it has been advertised for 3.5 years and not one single person has contacted me.

    Yikes! Not one person? Sorry to hear that…

    Well, I think it’s safe to say that the real estate market in Spain is in free fall and has not yet hit rock bottom. However this isn’t the case for tourism right? Sure there was a downturn in tourism in 2008-2009, but according to some sources it’s growing since the second half of 2010. According to an article on the UNWTO website, the Canary Islands had growth of 16% in 2011! Also, the number of international tourists worldwide is increasing, with some countries experiencing exceptional growth (Russia had 30% increase in a recent year (can’t find the source that I read for some reason, but I think it was 2011).

    Anyways the stats are out there somewhere, but my point is that I think the fractional ownership market should be more in line with tourism. Someone from a colder climate looking for a vacation home to come to for a couple months in winter. The problem seems to be how to connect buyers and sellers?

    I mean, I can’t find a single other fractional property for sale in Spain online — can you??

    Maybe I’m the only one trying to sell a fractional ownership, in which case it’s one of a kind, and I shouldn’t have a problem selling!?

    Andrew

  • #114823
    Profile photo of Anonymous
    Anonymous
    Participant

    I am also a bit confused as why anyone would want to buy a share of a property for the same price that they could actually buy their own place outright?

    The market is dire and this is full of problems, dire problems if you think of the problems each person has and then times it by the number of ‘owners’ it would have.

    I agree, use it as a holiday home, rent it as a holiday home but as a rental, don’t wade into the problems of selling off bits of it as it could come back to bite you.

    Tourists can stick to hotels or holiday rentals. If they don’t like it they can change the next time they book their holiday.

  • #114825
    Profile photo of Anonymous
    Anonymous
    Participant

    Just had another thought.

    Why not try to sell to the owners who have use of the apartment in December or March, then they can use it for longer than their 2 months. Lower the amount you are asking for to be in line with the current climate (ie: I would personally guess that two months of a 1 bedroom apartment is worth no more than 15k at the moment?)

    Just an idea as I can’t see anyone paying that much for only 2 months a year, plus 80 euros maintenance as well. Sorry, just telling it as it is from my viewpoint. If we were all rose-tinted more people would walk into more problems.

  • #118062
    Profile photo of Anonymous
    Anonymous
    Participant

    I am interested as to what agreement the fractional owners have between themselves? it must be a pretty water tight contract!
    regards
    Andy

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