Fractional Ownership: London’s Investment Secret
London has been a centre of the international real estate community for many years now, remaining popular despite Brexit fears over the last few years. Whilst traditional real estate investment maintains at a sensible level, a newer investment technique – fractional ownership – has also started to gain traction and become popular but what is fractional ownership? And is it suitable for you?
One of the main reasons why London’s fractional ownership popularity has increased is because of the city’s innate desirability. London is teeming with opportunity, opening doors for business, innovation and international prestige. This desirability attracts the most prestigious of clients and individuals, supercharging the city’s revenue which is invested back into its appealing image.
This desirability is epitomised by the luxury property available throughout the city which is generally perceived as some of the best real estate on the international market. The surge in love for fractional ownership has been directly driven by the universal craving for luxurious real estate investment across London.
What is Fractional Ownership?
Fractional ownership is a fairly new take on real estate investment, drawing on the concepts of the timeshare system but removing the flaws that shareholders were highlighting. The main concept of fractional ownership is to split the deed of a luxury property into affordable sections based on the market value of the building. Individuals can then buy these ‘fractions’ of the property, giving them a percentage ownership of the physical brick and mortar as well as the ability to reside in the building for a period per year, based on their fractional ownership.
This is the fundamental difference between fractional ownership and timeshare. In a timeshare, you purchase the right to reside in a property for a certain period over the course of the year. You do not own any element of the property itself. Fractional ownership gives you the same advantage of being able to occupy the household for a set period but also serves as an investment because you own part of the property.
This is a huge advantage for the young investor because it gives you an affordable foothold into the real estate market that can increase in value. In addition, depending on the contract you agree to, it’s usually very easy to put your share up for sale independent of the other people that own part of the property, giving you absolute flexibility.
Should You Invest in Fractional Ownership?
Fractional ownership in London offers the average individual an affordable and reliable option to enjoy the luxuries of London’s most elite locations for a set period each year. Furthermore, it opens the door to the real estate market as your share of a property can grow in value along with the overall property.
If you seek an affordable holiday home somewhere impressive, along with a reliable investment, then there really isn’t much better than fractional ownership. If you’re interested in fractional ownership then you can click here to learn more.
Take advantage of the market whilst it’s still in its infancy and you should be in a position of power by the time the practice takes off and becomes more popular. This is even more important as increasing numbers of London luxury flats are being left unsold. These unsold flats and would make perfect (and affordable) luxury fractional ownership properties in the near future.
If you get your foot in early, then you may be able to take advantage of this property excess before others do. Beating the competition has always been an essential part of any investment plan and the same applies to the growing fractional ownership market.