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By taking the US fractional ownership model to a new level, a number of UK companies and investors such as The Best Group are providing buyers with exceptional lifestyle and investment benefits.

Steven is a top City executive who is, like most high net worth individuals, time poor. He has done well by effectively and efficiently using his time and money, and sees no reason to change a winning formula. So when he's looking for the best way to enjoy his annual Caribbean holiday, the idea of buying a villa does not appeal. Why tie up cash or equity to the tune of more than a million dollars only to enjoy it for two weeks each year? He could rent it out but if the occupancy and returns don’t stack up, then he would be better off investing his money wisely and using the earnings to buy the holidays.

Steven knows that the people who own the assets should always come out on top. That’s why fractional ownership appealed to him, and especially the new models that are emerging out of the United Kingdom. By choosing fractional ownership, Steven gets two weeks a year in a 3,000 square foot suite with private access to a Caribbean beach, for free. It would cost him $21,500 to rent the room. To buy that he would have had to earn another $35,000 before tax, so the saving has paid for the family’s flights. On top of that Steven’s get’s paid $25,878 for allowing a local boutique hotel operator to use his room for another eight weeks a year. Steven pays no management fees, and has no liability for any depreciation of furnishings and fittings. This adds up to a benefit of between 15% and 18% on his capital sum each year.

Steven is at the forefront of a property trend that is gaining increasing popularity on this side of Atlantic. Fractional ownership works simply. Instead of singly buying a property, buyers are matched with others and buy together. As you can imagine the property that you can invest in is significantly larger than what would have been possible on your own. You then you have access to the property and can even let it out when you are not there. By owning a share of the title, if the price of the property increases, the value of your share also rises. Fractional ownership is about as far removed from timeshares as possible because it gives you an actual share of the bricks and mortar. Furthermore you are not necessarily restricted by a set of period of time.

 

What attracts people like Steven is the fact that responsibility is shared so the problems typically associated with owning property abroad are significantly diminished. Fractional ownership gives you the freedom to own a large, luxury property, enjoy all the benefits but for a smaller input. All properties are managed so any problems are sorted out for you. You get the added benefit of hotel-style services from maids to pick-ups from the airport.

A handful of companies have taken the fractional model, dissected it to create fractional products for the British consumer far superior to their American predecessors, where the concept of fractional ownership originated.

They have identified the opportunity to deliver a combination of strong lifestyle benefits with exceptional income and capital growth returns. In the United Kingdom The Best Group is leading the charge in fractional ownership and advises a growing number of clients on investment opportunities, particularly in the Caribbean, Central America, South Africa and New Zealand. They also advise property developers to best structure their projects to utilise the advantages that come with fractional and other innovative property structures.

For a three-bed, three-bathroom apartment in St Lucia, a 10-week fraction costs £170,000, with no management fee; the rental return is a minimum of £12,750 per annum.

Further information
The Best Group
Telephone: +44 845 130 9022
Website: www.thebestgrp.com

     
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