Fractional ownership of property is whereby a group of like minded investors pool resources to own real estate togehter and agree on how to share the real estate . Sharing can be in terms of share of rental income or share of time period spent on the property.
Most fractional ownerships worldwide share the time spent on the property on a pre agreed contract whereby one can opt to collect rent in lieu of their time at the property.
For example, assuming a hotel with several rooms, each room is shared by 12 people, with each person having rights to use the room for 1 month per year. The 1 month per year right to use the room will be the fractional ownership. The owner can either choose to spend the 1 month in the room or collect the monthly revenue for the particular month when the room is rented out as a hotel suite.
1.Fractional ownership enables people to invest in Real estate withhout the huge initial costs asociated.
2. Fractional ownership enables people to own real estate in several regions eg Nairobi, ombasa, Kisumu, Nakuru at a very low initial capital input. People can then reduce their cost of accomodation when they travel.
3.Fractional ownership removes the complications required to invest in real estate eg hiring contractors, consultants, local authority approval licences etc.
4. This gives very high return on investment compared to other forms of real estate such as apartments for rent.
A4architect.com offers a portal whereby like mindd investors willing to invest in fractional ownership can meet, discuss and join an investment group at their desired location.
Francis Gichuhi Kamau, Architect.