Fractional Ownership
Fractional ownership and leaseback both offer investment opportunities for buyers.
Trevor Little, editor of Newskys.co.uk, examines the arguments for each type of ownership.
With increasing coverage of However, fractional can also Around 60% of our clients are
fractional ownership, as outlined provide access to regions where full investors, although this does
in the last edition of Venture, it is difficult to find new offerings, vary with the area in question.
French leaseback specialists are and Cany acknowledges that the For instance, we find that people
now competing by comparing the type of property purchased varies like to have some usage for ski
offerings of the respective models. between the two models: “You can properties, while in Paris we
Whether for capital appreciation, get a bigger and more expensive find it is mostly an investment
rental returns or old-fashioned property with fractional ownership purchase. For me, fractional has
holiday use, France continues to be as you are paying a portion of always been more of a lifestyle
a popular destination for investors what you would have paid if you investment. It’s a good holiday
and buyers. As well as outright were to buy the property on your option as if gives you the chance
ownership, fractional is increasing own. With a French leaseback, to live somewhere you wouldn’t
in popularity, while leaseback unless the investor has a lot of otherwise be able to afford.”
(which Matthieu Cany, managing money, he will only be able to As well as the guaranteed income
director of Sextant French Property, afford an apartment.” paid to buyer by the property
explains is a whole-ownership management company, another
vehicle in which “the buyer For investors, though, it is all financial incentive of leaseback
purchases a property and then about the prospect of appreciation is, according to Cany, that “when
enters a long-term agreement by and rental returns. For leaseback buying a French leaseback, the
which the property is leased back specialists, a key differential client will be able to get the VAT
to the seller, at an agreed-to rate”) between the two types of back whereas with fractional
has long been an established way ownership has traditionally hinged ownership he can’t”.
to buy in the country. on the investment potential –
leaseback primarily sold as an However, in recent months there
For Matthieu Cany, the key investment vehicle, with a degree has been a marked rise in fractional
difference between the two of lifestyle, with fractional tending offerings aimed at investors - either
methods is that “there is a wide to be the opposite. though rental returns, appreciation,
choice of French leasebacks in or being suitable for SIPPs - thereby
different areas. As for fractional, Nick Leach, head of Pierre & reducing the lifestyle/investment
there is almost nothing in the Vacancies Property Investments, contrast between the products.
French property market as most UK & Ireland, says: “I would Les Milton, chairman of The
fractional ownership properties are definitely characterise leaseback Fractional Ownership Consultancy,
in Spain, Portugal and Florida.” as more of an investment product. says of fractional: “First, there are
Page 30 Click here to register for your FREE monthly copy
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32