| Source: Fractional ownership on the Costa del Sol | | | | property during the summer months for example, |
| With the slowing property market and in an | | | | the property will not be going to waste and all |
| attempt to promote more expensive properties | | | | costs are split 50/50, such as mortgage |
| several developers and agents have started | | | | repayments, taxes, etc… |
| marketing properties in a different light. The new | | | | |
| buzz word is fractional ownership of properties on | | | | The disadvantages of fractional ownership |
| the Costa del Sol. This is being treated as the | | | | The property has to be treated more like a |
| newest way of owning a property in Spain, but | | | | business asset than a holiday home. Normally a |
| really is just a a way of encompassing existing | | | | company has to be set and managed to prevent |
| methods of buying a property under one term. | | | | a conflict amongst the share holder. Although this |
| Property fractional ownership simply means the | | | | has the convenience of allowing someone else to |
| division of a property into portions or shares. It is | | | | deal with all the taxes and general costs of the |
| worth noting that conceptual point of view; | | | | property itself there are the additional costs of |
| fractional ownership is not the same as timeshare. | | | | setting up a un/limited company and of course |
| Fractional ownership affords much of the | | | | the management company fees. |
| freedom and usage benefits offered in timeshare, | | | | There is also the situation where the shareholders |
| however, the important difference with fractional | | | | are able to sell their shares. The other owner |
| ownership is that the purchaser owns part of the | | | | would have the option of first refusal, but you as |
| property, which is reflected in the title deeds as | | | | one of the owners could not stop the sale to an |
| opposed to unit of “time”. | | | | unknown. |
| It should be noted that this is not a particularly | | | | As part owner you are also very limited in what |
| new concept and in fact most properties are | | | | you as part owner are able to do to the property |
| already co-owned. If both you and your partner | | | | in regards to refurbishments/improvements on |
| or family/friend are on the title deeds then you | | | | the property. Especially if one of the other |
| both own 50% (or a fraction) of the property. | | | | owners is unwilling to pay. |
| The difference now is that some developers | | | | Also remember that by buying a property this |
| agents are marketing the same idea, but instead | | | | way you are limiting yourself in another way. This |
| of buying with family/friend you can buying with | | | | property can only ever be a holiday home. You |
| total strangers. And it gets cheaper as more are | | | | will never be able to simply move to Spain and |
| involved, which is obvious as 1/8 will cost less | | | | take residence, nor change your routine and |
| than 1/2of the same property. | | | | come to stay on the Costa del Sol at a different |
| So what are the benefits of fractional ownership | | | | time of your. |
| on the Costa del Sol. | | | | If you do want to buy a property on the Costa |
| Well the most obvious benefit is that by several | | | | del Sol, and are willing to purchase with a second |
| people combining their wealth they would be able | | | | party, make sure you have a personal relationship |
| to purchase a more luxurious property than they | | | | with them. Whether its sibling, parents, friends, |
| would be able to separately. | | | | etc… You are still able to protect yourself via |
| There is also less wastage. Even if you and you | | | | the title deeds but will not be stuck in the situation |
| partner only intend to use the property during the | | | | of only owning a small fraction of the property |
| winter months, you will still have all the costs of | | | | and having one of the other owners sell his/her |
| maintaining the property while it is empty. By | | | | share on to someone you find less that desirable. |
| buying with another couple who will be using the | | | | |