Son Gual Fractional Onwership

Why Own a full House when you use it a Fraction of the Time?

1/8 Ownership
6 Weeks Year
330.000 € Fraction

What is Fractional Ownership

Fractional ownership is a method where multiple investors share the ownership of an asset, such as real estate, aircraft, or even luxury goods. Each owner holds a fraction or percentage of the asset, allowing them to enjoy its benefits (like usage or rental income) without bearing the full cost or responsibility. It differs from timeshares, as fractional owners actually own a portion of the asset and may also benefit from appreciation or resale, depending on the agreement. This model allows access to high-value assets at a lower individual investment.

Why is it good? Advantages

Fractional ownership offers several advantages, making it a good investment option for individuals looking to share high-value assets. Here’s why it’s beneficial:

Cost Sharing: The upfront cost of purchasing an asset, like a property or a luxury item, is shared among multiple owners, making it much more affordable. You gain access to high-value assets without the full financial burden.
Lower Maintenance Costs: Ongoing costs, such as maintenance, taxes, and insurance, are split among all the owners, reducing individual financial responsibilities.
Investment Potential: Unlike timeshares, fractional ownership allows you to actually own a percentage of the asset. This means you can benefit from potential asset appreciation and even sell your share in the future, potentially making a profit.
Shared Management: Professional management handles day-to-day operations, reducing your time and effort in managing the asset. You still enjoy the benefits without the hassle of overseeing it yourself.
Flexible Usage: A well-defined usage schedule allows all owners to enjoy the asset. You get to use the property or asset for personal benefit at a fraction of the total cost.
Diversification: Fractional ownership allows you to diversify your investments by owning parts of multiple assets, spreading out your risk rather than investing heavily in just one.

In short, fractional ownership offers cost-efficiency, investment returns, and access to high-value assets with minimal management hassle, making it an attractive investment strategy.

How does it work in this company?

In a fractional ownership arrangement with 8 owners, the rules and management involve the following key aspects:

Ownership Shares: Each of the 8 owners holds an equal or proportional share of the asset,. In our cases each owner holds 12.5%.
Usage Rights: 6 weeks a year Usage of the asset split evenly among the owners. A schedule is created to ensure fair and equal access, rotating time slots. Owners can exchange or rent out while not using the asset. Always managed by the management company.
Costs: All owners share ongoing costs such as maintenance, insurance, taxes, and management fees. The cost is usually 2% per year of the asset value.
Decision-Making: Major decisions (e.g., selling the asset or making improvements) are usually made collectively, often requiring a majority or unanimous vote.
Management: The asset can be managed by the management or a management company. a professional management company is hired to handle day-to-day operations, maintenance, and scheduling.
Exit Strategy: Once a year owners can sell their share. The valuation will depend on the asset price at the time of selling. The other owners have preference in buying the share, but no more than 4/8 can be owned by one holder.
These rules are outlined in a legal agreement that ensures transparency and avoids potential conflicts among the owners.