Fractional Ownership in PP

[Pollpott]

Evening All,

Just been looking at the Property For Sale section of the Forum. Have always loved the idea of spending more time in PP than our usual 2 weeks in the summer, and then spotted the Barnard Hamilton Properties 'Fractional Ownership?'
The deal is you pay a one-off of about 45,000 Euros and then 250 Euros a month for 7 weeks use of a property in PP.
So for the first year, if I've worked it out correctly, you pay 45,00 plus 250x12= 3,000 euros, and then 3,000 euros per year for the following years. Over 10 years that would be about 75,000 euros.
Does that sound like a good deal? At present I am paying about £700, (794 Euros) a week for a Pine Walk apartment. For 7 weeks a year that is 5,558 euros. Over 10 years that is 55,580 euros.
Now that I've worked it all out it doesn't sound such a good deal.

Anyone got any thoughts on this?
Thanks,

 

[El Gordo]

So does that mean you have paid 20,000 Euros towards a part share in a property (over 10 years) that you could sell for a profit??

Is it a bit like time share but relating only to one property.

 

[BonysLad]

Evening All,

Just been looking at the Property For Sale section of the Forum. Have always loved the idea of spending more time in PP than our usual 2 weeks in the summer, and then spotted the Barnard Hamilton Properties 'Fractional Ownership?'
The deal is you pay a one-off of about 45,000 Euros and then 250 Euros a month for 7 weeks use of a property in PP.
So for the first year, if I've worked it out correctly, you pay 45,00 plus 250x12= 3,000 euros, and then 3,000 euros per year for the following years. Over 10 years that would be about 75,000 euros.
Does that sound like a good deal? At present I am paying about £700, (794 Euros) a week for a Pine Walk apartment. For 7 weeks a year that is 5,558 euros. Over 10 years that is 55,580 euros.
Now that I've worked it all out it doesn't sound such a good deal.

Anyone got any thoughts on this?
Thanks,

Pollpot,

Be wary of any "part/fractional " ownership of any property cos you don't really own it. If you want to spend more time here look at renting longer term than holiday weeks quotes. You can usually pick up some good deals for long term rents. Thought the mindset of owning property now, especially in the UK , had been blown away in the credit crunch. Renting has always been the norm amongst the Euro nations other than Britain. For sale property ain't shifting here so be very careful. Keep your money in the bank, my friend, you won't regret it.

BonysLad

 

[Pollpott]

Not sure if you can sell it on, I don't think so. The 10 years was just an example, to see how much it would cost overall.

Anyway, I can't afford it. My daughter's just told me she's getting married soon! That's my little nest egg taken care of.

I think long term renting might be a better option, like you said, Bonyslad.
I'll just keep doing the Lottery!

 

[Chemical Dave]

I have read the BH info and I think there are good things and bad things about this form of investment. The good things are that for a relatively small amount of money you could own property in PP.( I think this is where it differs from timeshare), all the maintenance, rates insurance are taken care of, you can rent out unused weeks, and are guaranteed 2 weeks in the high season. With any luck it will appreciate in value and you will make a profit when and if you sell.

The bad things are that I think it only applies to new certain new build developments (which may be in an area you don't want) and the price of these includes all furniture etc. The market value of these is hard to define, and you won't be picking up a bargain. I disagree that the typical value of an apartment use in BH's example in PP is 500,000 euro. It may be the average property price, which is not comparing apples with apples. The statisticians may suggest the median price is more relevant. It may also be difficult to sell your share quickly if you need to, but you may find other fractional owners will want it so it could be easy. I can also see it will be a gravy train for lawyers etc as rather than 1 set of fees earned on a property each fractional owner will be liable for fees.

It may be that this form of investment will work for you, but as always, seek independent professional advice before making any commitment.

Adios

Dave

 

[tombadino]

off thread a little but I would be interested in a private shared ownership with others in Pollensa. We always rent Villas for a number of weeks and if anybody is interested in buying the send me a messege.I have ariund £80 k to invest.

 

[Pollpott]

Thanks Chemical Dave,

Some interesting facts there. I'll keep looking into various options.
Thanks.

 

[Chemical Dave]

pollpott, it looks to me that the fractional ownership may apply to one new development in PP. It is sited just to the right of the new Formentor road (PP side) as you head to Formentor. It is a new 3 storey apartment block and the show flat is now open. Looks OK from outside but a bit far out of town for me.

Adios

Dave