Fractional ownership property investment is a guide to fractional ownership property investment by http://www.avantiswealth.com

1. GUIDE TO
FRACTIONAL OWNERSHIP PROPERTY INVESTMENT
THE RICHER RETIREMENT SPECIALISTS

2. REGULAR INCOME FROM -
FRACTIONAL OWNERSHIP
Here is a simple overview of
fractional property ownership:
• You own a fraction of the
physical property
• Lower financial risk - less initial
outlay
• Allows you to spread your
property portfolio
• You have deeded ownership,
therefore the price you pay is a
true reflection of the value of the
property
• Many schemes offer both regular
income and the potential for
capital growth
Fractional ownership property investment
Originally invented as a scheme for owners of jets
and yachts, fractional ownership has begun to spread
to the property investment market in recent years.
Fractional ownership allows you to buy a fraction of
a property (or yacht or jet). This gives you rights to
use the property for certain periods every year and
entitles you to a share of the profits if the property is
resold.
Fractional ownership has been big in the US and
Canada for some time, only recently beginning to get
off the ground in Europe. The increase in popularity
has been put down to the turmoil in the economic
market. Fractional ownership allows investors to
own assets with reduced risk compared to buying a
property outright.
As green shoots are being seen in housing markets
across the world, now seems a good time to turn
money into assets, but at the same time returns are
still far from guaranteed. Fractional ownership seems
to offer the perfect solution offering guaranteed
returns for a set term with reduced risk.
Fractional ownership
When someone purchases a room or part of a
property this is called fractional ownership. Like
timeshares fractional ownership properties can often
be used for holidays. The main difference between
them is that a fractional ownership investment is
focused on making a financial return, offering the
potential for both capital growth and a regular
income.
The owner of the fractional share will receive deeds
and become a part owner of the property. One
example is the purchase of a hotel suite. The owner(s)
of the suite will receive a share of the revenue
generated by hotel guests who stay in the hotel suite.
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ISAUNIQUEOPPORTUNITY
WHEREUNCONNECTEDBUYERS
COLLECTIVELYANDSECURELYOWN
THEFREEHOLDOFAPROPERTY

3. How does fractional ownership
property investment work?
Fractional ownership works by selling
portions of existing or new properties
to different investors. This means that
a property will have between four and
thirteen owners, rather than just one.
The properties available on a fractional
ownership basis are usually luxury
properties which many investors may not
typically have access to.
A property may, for instance, be worth £1m
– but sold off through fractional ownership
to eight different owners for £125,000
each. Each owner has a deeded stake in the
property and will be able to use it for on
average four weeks each year.
Fractional ownership schemes usually have
a time limit. At the end of a specified period,
possibly seven to ten years, the property
will be sold off and the proceeds will be
split between the various owners. In this
way, fractional ownership can be seen as a
long-term investment as profit will be made
if the value of the property has increased
over time.
How is fractional ownership
different from timeshares?
Once popular in the eighties, timeshares now have
a reputation that borders on being criminally bad.
Timeshares were marketed to working classes as a great
way to have access to a personal holiday home. There
are hundreds of stories available of people being duped
into purchasing timeshares in properties that were
either very badly maintained, or in some cases, never
even built. People found themselves trapped, unable to
sell on their timeshare or make any use of it. Timeshares
are seen as money traps, and fractional ownership
sounds suspiciously similar.
The good news for investors is that timeshares are in
fact quite different to fractional ownership. Timeshares
involve buying only the right to use a property for a set
amount of time each year, you do not actually own a
share of the bricks and mortar the property is built from.
Often when buying a time share, you are only able to use
the property for 1 week in a year. This means that for
the other 51 weeks, someone else is using the property –
leading to maintenance issues and very little flexibility.
Timeshares begin to devalue the moment they are
purchased and it is highly unlikely you will ever
make a profit from one. They are notoriously bad as
investments.
Fractional ownership, on the other hand, makes
investors into deeded owners. There are fewer owners
and each stands to make a profit on their share as
long as property values rise. There is a great deal more
security and far less risk involved in fractional ownership
as opposed to timeshares.

4. Advantages of fractional ownership
• If you invest in a fractional ownership property, you
will receive regular income from the investment,
typically 6% - 12%
• You can often sell your share back to the hotel for an
agreed price when you no longer wish to own it
• Most investments offer a ‘sell at any time’ policy
• It is cheaper to own a fraction of a property than buy
the whole property and you still get a share of the
returns it makes
• It is a fully-managed investment meaning that you
won’t have to worry about managing or maintaining
the property
• Options for personal usage instead of receiving the
income are usually available
• Many investments can be held in a SIPP or SSAS
Financing fractional ownership property
It is not possible to get a mortgage for fractional
ownership, so finance for properties owned in this
manner must either come from personal savings funds
or through re-mortgaging an existing asset. Fractional
ownership can also be an investment made via a SIPP or
a SSAS.
Selling fractional ownership properties
Most fractional ownership schemes have a set time for
resale. This can vary from seven years, right up to fifteen
years. There are usually exit strategies available if you
wish to sell your share in the property before this time
is up. The most common option is to offer your share to
the other owners and hope one of them will buy you out.
Different countries and companies also have various
different resale options outside of this.
Fractional Ownership
You actually own a fraction of the
property. You physically own a share
of the freehold of the property as
an asset – the bricks and mortar.
When you’re ready to sell, you can
do so at any time and with a realistic
opportunity of making a profit.
Timeshare
You purchase the right to stay in
a property for a given time period
over a number of years (effectively
a re-saleable, prepaid booking). This
is completely different to fractional
ownership – you do not own any part
of the physical property.
VS

5. THE RICHER RETIREMENT SPECIALISTS
HISTORIC SCOTTISH CASTLE SUITES
HOTELS&
RESORTS
a Invest from £30,000 to £390,000
a 7% fixed net returns guaranteed for 1 year
a Personal usage option available
a Historic castle with superior facilities
a UK based investment
a Available to all investors
WHY WE LIKE IT
“This is the investment you’ll
want your grandchildren
to inherit.”
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6. THE RICHER RETIREMENT SPECIALISTS
4 STAR LUXURY HOTEL INVESTMENT
HOTELS&
RESORTS
a Invest from £9,812
a 4% fixed during construction
a Projected 8% for 5 yrs 10.2% for yrs 6-10
a Option to sell at anytime
a Ramada branded resort
a Available to all investors
WHY WE LIKE IT
“Aclass act – Ramada, the resort
operator has nearly 1,000 hotels and
resorts worldwide.”
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7. THE RICHER RETIREMENT SPECIALISTS
CAPE VERDE 5 STAR LUXURY RESORT
HOTELS&
RESORTS
a Invest from £20,000
a 7% guaranteed for 2 years
a 9% projected year 5 onwards
a Partnership with Melia Hotels
a Developer financially strong
a Available to all investors
WHY WE LIKE IT
“In partnership with Melia Hotels
supported by UK tour operators it’s a
winning combination!”
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8. THE RICHER RETIREMENT SPECIALISTS
FIVE STAR GOLF AND SPA RESORT
HOTELS&
RESORTS
a Invest from £30,000
a Fixed returns 7% for 10 years
a Up to 2 weeks personal usage
a Assured resale option of up to 150%
a SIPP and SSAS approved
a Available to all investors
WHY WE LIKE IT
“The developer has already
completed a number of successful
projects.This resort is world-class!”
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9. THE RICHER RETIREMENT SPECIALISTS
DISCLAIMER
Avantis Wealth Ltd is not authorised or regulated by the Financial Conduct Authority (FCA). This is not a financial promotion or an invitation to invest.
Avantis Wealth Ltd does not provide any financial or investment advice. We provide a referral to a regulated advisor who will offer appropriate advice, or to the company offering an investment who will determine your suitability for
the investment prior to any offer being made. We strongly recommend that you seek appropriate professional advice before entering into any contract. The value of any investments can go down as well as up and you might not get
back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.
Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These
products are not regulated by the FCA or covered by the Financial Services Compensation Scheme and you will not have access to the financial ombudsman service.
This page does not constitute an offer to invest but is for information only. Persons expressing an interest in the bond will receive an invitation document, which they should read and ensure they fully understand prior to making any
decision to subscribe. Persons in any doubt regarding the risks associated with investments of this nature should consult a suitable qualified and authorised advisor.
VERSION: FI-2.0 25/06/15
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