Already popular in the United States of America, ‘fractional ownership’ is a process which offers a simple and straightforward way to purchase property, even with profits in mind, at what can be a significantly lower cost.
Fractional ownership is a percentage share of an expensive asset and is common practice in many areas of business.
Essentially shares in an asset are sold to individual owners, who then have priorities and privileges associated with the asset.
It is debatable whether or not fractional ownership provides a financial advantage over renting, especially under tax regimes where there may be an advantage in the latter, but increasingly in terms of property purchases investors are looking towards the process as a way of getting involved in areas that they might not previously have been able to access.
Greece and Portugal have already started to adopt policies aimed at increasing fractional ownership transactions and as Spain continues to look at a range of options to kick start its ailing domestic property market it could be the next country in line.
Obviously buyers who are in a strong financial position are more likely to take advantage of historically low Spanish prices and a glut of properties on the market to make their own outright ownership purchases.
However, with lending criteria still tight and capital funding issues still playing a significant role in the depressed property markets across Europe fractional ownership policies are being touted by some as a magic bullet.
Northern Spain locations around Barcelona and other traditionally popular areas such as Costa Brava, Mallorca and Ibiza are actually performing quite well in terms of high end market movement, and this is an area that will undoubtedly benefit further from the application of fractional ownership deals.
Moving money from country to country, whether for property deals or any other reason, involves negotiating the international exchange markets. Always use the services of a currency exchange specialist for the cheapest way to send money abroad.
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