tional Ownership: Frac roperty You Can Afford P If you've dreamt of owning a house abroad, but have so far been held back for financial reasons, or want a touch of luxury but can't quite afford it, fractional ownership could be your answer. It's one of the main buzzwords in the property world right now and hails from the US, where it's already successful, but what exactly does fractional ownership mean and what can it do for you? Put simply, fractional ownership basically means buying a share in a property. You get to enjoy all the benefits of the property, usually have a set number of weeks per year when you can stay at the property, and share it with the other owners. The title deed is divided into fractions ­ depending on the property, these can be anything from a quarter to a twelfth - and this gives you the right to stay at the property for the equivalent fraction of the year. A company runs the property, ensuring that everyone pays a maintenance fee each year for the upkeep, and all you have to do is enjoy staying at your property. It may sound like timeshare with a different name, but it's not. Unlike timeshares, you own your fraction of the property outright, so you can sell it at any time if you wish. One of the benefits of buying in this way is that you're spared the hard work of dealing with the usual n Gran Vista, Majorca from The Hideaways Club buying process that accompanies foreign property purchases. It can be a good way to get a foot on the foreign property ladder and it also offers you the chance to buy into properties that you'd otherwise be unable to afford on your own. "Many developers are turning to fractional sales in a bid to raise more immediate revenue, providing overseas property investors with a quick, inexpensive and secure entry into the market," says Kevin Prior, investment director at Obelisk International. "However, I'd say that fractional ownership is more suited to those who can't afford to buy a property in its entirety." Fractional ownership properties can be found worldwide and there are options for all budgets. But the types of property UK investors tend to go for seem different from those favoured by the thriving US market. Fractional Ownership Properties Hideaways Club At the higher end of the market, The Hideaways Club offers members the opportunity to have access to any of its 13 properties across Europe (they are aiming to have 100 within the next five years), all of which are within four hours flight of the UK. Each property has a minimum of four bedrooms and three bathrooms, a swimming pool and large private gardens. The cost to join is £200,000, plus there's an annual fee of £12,000, and members can have four to five weeks holiday at a property. Members can sell their share at any time. The management company takes full control of the maintenance, with the fees including a concierge service, and all properties are kept to a high standard. Some of the locations of properties include Morocco, Majorca, the South of France, Portugal, Switzerland, Turkey and Tuscany. b Morocco villa n The Hideaways Clu The Hideaways Club www.thehideawaysclub.com Tel: 020 7664 8860 26 Owners Perspective Magazine August 2008