Re: Re: Is Fractional Ownership a good Investment?

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logan
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One of the principal difficulties foreign owners face on urbanisations is the management and maintenance of the developments. Those costs tend to spiral upwards every year depending on how effective the community appointed committees are. However at least they are elected. Also every Spanish community tends to be mired in debtor owners who simply don’t pay up.

As far as I can see with fractional ownership you either are locked into an unelected management company appointed by the developer or you can manage the property yourselves. It depends on the type of contract you sign up to.

You can bet any developer appointed management company will charge hefty fees and even if it’s possible to manage the property between 13 other owners it’s likely to be a nightmare. Collecting annual community fees is hard enough for a well organised community. Individuals don’t stand a chance.

No matter how respectable the developers of these resorts are, their raison d’être (reason for being) is profit, for themselves and their shareholders. Once sold you are on your own.