RELATED NEWS AND ARTICLES
Growth expected in Fractional Ownership both in Europe and on a Global Basis
An Overseas Property Professional article "European Fractional - More Insulated From the Downtown", it discusses that the latest NorthCourse study, the European Fractional Interest Real Estate 2009 Report just released provided positive and encouraging news for the state of mind among buyers in Europe and abroad.
Factors that helped come across this direction is that buyers are drawn in with lower entry costs, optimism of the asset appreciating, and less worry and hassle associated with fractional over whole ownership. Costs such as furnishing a property and daily/annual maintenance costs are becoming a larger deciding factor in selecting fractional ownership. Also, as fractional options have expanded and become more mainstream, buyers are becoming more comfortable with this decision.
Here are some predictions from the study:
"Over the next five years, NorthCourse contends that there will be substantial growth in the fractional industry, on a global basis and in Europe. Despite the current economic situation, not everyone will give up their lifestyle. There is vast potential for many of those people who would have otherwise purchased a wholly-owned vacation home, to turn to the alternative vacation home market, and fractional real estate can be a lucrative offer for themselves and their lifestyle."
"Many investors are also looking beyond the mainstream property sectors and alternative asset classes which have a more bond like cash flow will remain very attractive from a protective point of view. Astute spenders who do not want the demands of a second home, therefore have the option to invest in a fractional real estate product and maintain their lifestyle at a fraction of the cost."
