February 26, 2014 at 8:34 am #57951loganParticipant
Given that time share is now regulated by the EU and new concept of fractional ownership is now being sold in Spain which is not. It is interesting to consider the differences and possible pitfalls of such schemes.
Here is a site which helps to understand the process.
There are numerous web sites selling fractional ownership but very few which explain the drawbacks and similarity to time share. These sites loudly point out how it’s not time share but from a consumer point of view there is little difference it seems to me.
If it looks like a duck, quacks like a duck, it’s a duck.
Sellers explain that the principal difference is if you purchase fractional ownership you actually own a portion of the property. Usually a 1/13th share. Whereas with time share you own only the right to use the property. With both schemes you are still restricted to a fixed time usage and this if where I dispute there is in fact little difference between the two schemes. Also crucially fractional ownership is not regulated in the same way as time share. In other words you take a risk with your money.
Owning a property with 12 other people seems to me fraught with difficulties. It’s unlikely you will ever agree on anything which could effect the maintenance of the property in the long term.
My best advice if anyone is considering a purchase in this way is to contact a specialist lawyer in the UK who fully understands the complexities involved and who is not involved with any developers.
February 26, 2014 at 3:38 pm #119238angieBlocked
I cannot for the life of me see this a good investment logan, and the article seems to agree that it’s not. Capital growth on a one thirteenth share is hardly likely to see profit of any substance.
IMO this is a form of holidaying in some comfort but also having highish costs involved, whether it works out more or less cost wise compared to going to different hotels is not clear.
It might suit some, but not for me 🙄
February 26, 2014 at 6:18 pm #119239katyBlocked
Just Timeshare under another name. Con artists are very inventive with name changes. The spiel hasn’t changed much though 🙄 The selling companies seem to have a lot if money to spend marketing these rip-offs, not surprisingly. There were some shown recently on TV on Watchdog or another similar programme. So you can leave the “fraction” to your family….if you hate them so much.
Surprised this site is even touching on it, sort of knocks it’s cred doesn’t it (thumbs down emoticon missing!)
February 27, 2014 at 9:40 am #119240angieBlocked
Just noticed no emoticon on my post katy, good spot by you 🙄 😯 😕 😮
February 27, 2014 at 11:57 am #119244loganParticipant
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.
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