FRACTIONAL PROPERTY
fishable stretch of the Wensum, offers 25 per cent fractions, and Barrasford & Bird is now offering fractional ownership at its Tregrenna barns development in Cornwall, from £39,000 to £86,000.
While with timeshares all you buy is a slice of time, with fractions you have a deeded interest
in the property.’
pierS brOWN fracTiONallife
The appeal of fractional is very simple.
In most overseas property markets, particularly the most mature ones such as France and Spain, overseas property is now highly priced - it is no longer the steal for UK buyers that it was ten or twenty years ago (particularly not with the weak pound). Credit tightening has further priced some overseas property out of the reach of the averagely wealthy. Piers Brown says “What fractional does is lower the price point and the level of entry for people.” But fractional property is generally not
addressing the bottom end of the market. For instance at Castello di Casole, some of the restored Italian farmhouses are priced at €4-5m or more. David Burden says that, “We find a broader audience by opening up to fractional ownership for €5–600,000.” The properties also include services such as cook, housekeeper, and concierge; “high end, but not ultra-ritzy,” Burden says. Fractional properties are now available
in many property markets. Timbers has resorts in Colorado, Mexico and the Caribbean, appealing to the US market, as well as Castello di Casole in Tuscany; Yoo’s Phuket development offers fractions from €45,800; and Rocksure is currently launching a fund with ten properties in Europe, focused mainly on the city break market, with an entry price of €115,000 giving 14 nights a year. There are even fractional properties
offered in the UK now; Kingfisher Apartments at Lyng in Norfolk, on a
PROPERTYdrum MARCH 2010 15
Our hOme iN paNama… Or pariS
It seems to be the mid market that is doing best. Though some fractions are ‘bargain basement’ with Panama flats from €25,000, the average fraction in Europe appears to be around the €100,000 to €200,000 level. Most of the properties offered are on resorts, though some city centre properties in destinations such as Paris are also being offered on a fractional basis; the market is definitely being driven by developers. Piers Brown says, “A lot of developers are
looking at fractional at the moment.” He points out that services and inventory all have to paid for at a resort, so fractional can help to defray expenses. It’s not surprising that developers see fractional as a useful addition to their sales armoury.
thailand
Les Milton of the Fractional Ownership Consultancy points out another advantage of fractional ownership for the developer. “Most importantly, fractional ownership creates a year-round resort population,” he says. “Resorts that have no ‘buzz’ don’t last.” Most developers have adopted a ‘mix
and match’ policy, with both fractional and whole ownership being offered on the same resorts. David Burden says that Timbers Resorts has a Residential Club or Fractional Ownership component on almost every one of its nine developments. “It’s another way of selling. We’re very careful that we don’t just have one single residential offering at any of our resorts.”
The Typical buyer
So who is buying fractional property? The answer to that question depends to some extent on who you ask. David Rogers says Rocksure’s purchasers are generally in their early fifties, often partners in professional firms. “They’ve got a nice UK house,
Left: Villa Arawan in Thailand available through Rocksure. Below: Angling for a nibble? Kingfisher Apartments on a commercial fishery in Norfolk. A quarter share of a two bedroom luxury apartment is £65,000.
EnGland
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