FRACTIONAL PROPERTY VS OTHER FORMS OF CO-OWNERSHIP
We believe that Fractional Property ownership is a far more secure form of investment than, for example, the following
Timeshare shareholding Timeshare usually consists of time, usually “weeks”, that one can use a particular property
With fractional property you own “bricks and mortar”.
We all know that the timeshare industry is plagued by difficulties, excessive management fees, problems to secure bookings etc.
Fractional Property still offers the ability to exchange one’s unit and is usually in the more affluent sector because you are not buying into a resort but exchanging an unit you own for an unit that someone else owns.
Timeshare has become a poor investment and after some time what you paid for initially no longer resembles what you now have and
With fractional property ownership you are able to enjoy capital growth.
In this instance you own shares in a share block company, which entitles you to use your unit. This is a form of ownership like Sectional Title but your ownership of that unit is not divided up further.
Sectional Title SchemesSectional title schemes only allows one to own an entire share it cannot be devided up furthur as with fractional title.
Shares in a Pty (Ltd) CompanyIf a property is owned by a Pty (Ltd) Company and you own shares in that Company, then to protect yourself you would need to enter into a complex shareholder’s agreement which regulates the power relationships between Directors and Shareholders. For this reason it is not as secure a form of investment as owning an undivided share in a property.