With fractional or shared ownership, your dream of owning a luxury yacht, home, race horse, or any other luxury item may become a bright reality. Within this article, we are going to discuss how you can purchase a millionaire home while on a budget, but before we do that, let's become familiar with fractional or shared ownership. Fractional or shared ownership shouldn't be confused with a timeshare, it is where a certain number of individuals contribute to the fun in order to purchase a leisure asset, such as a yacht or home, and then share the use of the property.
In the event that the value of the asset increasing, theatrically the value of your share will increase as well. In comparison to a timeshare, when you would only own the actual right to use this particular asset for a certain time period each year. Okay now that you are aware of fractional or shared ownership let's take a look at an example of this situation:
A group of individuals that are interested in purchasing a property within Mallorca, at a total cost of two hundred and fifty thousand dollars, decide that they are going to purchase it together. Each of them purchase a tenth share for twenty five thousand dollars which would entitle them to five weeks of use each year. The specific allocation of the weeks will be handled by the season, with each group selecting a week from the high-season, two weeks during the mid-season, and two weeks from the low season. The order within which they select their weeks will initially be chosen by a lottery, and then thereafter it will rotate.
Once a fixed period of five years has passed, the property is sold and then the value is returned to the share owners. Each of the owners will pay a tenth of the maintenance fees. The maintenance and time allocation is going to be handled by the management company. There are some lower share sizes available as well. Now, if you want to own a millionaire home, this would be the way to go about it if you didn't have all of the money yourself and you knew that there wasn't any way that you were going to be able to come up with this type of money.
The major advantage of this option is the lower purchase cost. Alternatively, if you are in a situation where you have a little extra money available to spend, you may purchase something that has a much higher value than you would otherwise be able to spend. Instead of having to look after the property, you will be able to enjoy the millionaire home this way.
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