Fractional Ownership Running Costs: Total Transparency
If you are interested in investing in a share of one of our fractional ownership properties, you have the opportunity to own 12.5% of the company’s shares for a fraction of the property price. We will take an example with a property share priced at 140,000€ for 1/8th.
With some of our fractional ownership properties (mainly in Spain), our partners can offer mortgages to non-residents to acquire the share.
In addition to the initial investment of the share price, there is a yearly operational fee of EUR 1,771 per owner, which is equivalent to about EUR 148 per month. There is also a small final cleaning fee charged after the apartment is used, like with any Airbnb type of rental.
The property purchase process involves random independent estate agents, private individuals, and our partners who buy and upgrade properties to high standards for rental or reselling. Like with any property, a commission is charged in fees from each of the eight owners to cover the concept, finding buyers, interim financing for the company’s formation and securing the home, and the project’s risk. This is already included in the share price to pay.
If you plan to rent out 30% of your weeks, which amounts to two of the six weeks, you can cover a substantial part of the running costs of the property. This means that you can enjoy your home for almost nothing for the four weeks remaining (1/8th share gives you 6 weeks), provided that there is a reliable rental. Our partners ensure that the property is fully legal and can obtain a tourist rental license as part of the legal work when the area allows it.
*Contact us for precise property auditing & costs as these can vary for each property. Price of utilities & services can vary but all co-owners will always have access to the detailed bills. You can change the property management if you wish to or co-owners could potentially manage it themselves if so they wish.
See below examples of rental costs and the seasons
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The process for buying a fractional ownership property
Just a quick overview of the buying process for an apartment like the one above.
The process of acquiring a share of the Spanish company involves several steps. First, interested parties must reserve their share by entering into a reservation agreement and sometimes but not always providing a 10% payment of the share price amounting to EUR 14,000 in our case (140K€ share). After reserving the share, an agreement is made with the new owner to transfer the ownership on a mutually agreed-upon date. The legal documentation will be sent for review and signature, ensuring that all parties are fully aware of their rights and responsibilities. To complete the purchase, the remaining 90% of the share price, equivalent to EUR 126,000 should be paid on the agreed date.
As only one person can own a share, it is essential to choose one person from among spouses/partners. This arrangement ensures that there will always be one 12.5% owner of the company after any divorce or death. You can also buy in a company’s name with many of our fractional properties.
The fractional ownership agent will purchase the property, and all renovation, refurbishment, furnishing and decoration will be carried out before the keys are handed to the new owner. During the purchase process, buyers will be fully informed about the property and related costs.
Upon successful completion of the purchase, the distribution of ownership begins. If not all owners are found before the takeover, the management will find the remaining co-owners, but you can start enjoying the property straightaway.
For the setup of a share company in Spain, it is necessary to provide a Spanish NIE (we help you with that of course). The new owner only needs to go down to the notary and sign a power of attorney, after which they can enjoy the benefits of ownership. For French fractional ownership properties your passport is fine.