Benefits of Fractionalising Your Holiday Home
July 7, 2022 • Co-Ownership 411
Fractional home ownership can bring lots of benefits to the table for homeowners – that’s why it’s a solution on the rise around the world. This option appeals to existing holiday homeowners that want to sell back part of their property as well as perspective buyers in search for their dream second home.
In this article, we will explore some of the reasons why fractional home ownership can be the right choice for existing holiday homeowners.
But first things first…
What Is Fractional Home Ownership?
Fractional home ownership is a co-ownership arrangement that allows homeowners to share in the costs, benefits, and equity of a property, depending on what percentage of the home they decide to purchase.
Homes can be divided into up to 8 shares, and your individual usage of the home is proportionate to the number of shares you own – i.e. one share will get you 42 days in your holiday home, 50% ownership will get you up to 168 days.
Now let’s dive into some of the benefits of fractional ownership for current holiday homeowners.
When you fractionalise the ownership of your home, you don’t lose equity over your portion of the property.
This means that when and if you decide to sell all or more of your shares, you can choose to do so freely. You can list the shares on the Kō website or sell independently with your own real estate agent, at market value or other.
Fractional ownership of a home means that you can own the home in proportion to the time you’re planning on using it for. In other words, you sell what you don’t use.
If your holiday home is empty for a good chunk of the year, fractional ownership could be a good option to consider.
3. Sharing Costs
It’s no secret that the costs of maintenance and upkeep of a home are often a deterrent for holiday homeowners, making them consider whether owning a second home is worth the trouble at all.
In a co-ownership scenario, you don’t need to foot all the maintenance bills on your own anymore. Costs are split equally among the homeowners based on their ownership status, so you end up paying for a fraction of the ongoing costs required.
4. Less Hassle
When you partner with a fractional ownership company like Kō, you can pass on the headache of managing your property at a fraction of the cost.
Kō homes are fully managed homes, so all you have to worry about is packing your luggage and making your way to your holiday residence.
The cashflow you might generate from fractionalising your home could be used to purchase shares of a luxury home elsewhere. For example, you could sell 4/8 (half) of your property in Australia and decide to put the capital towards shares in a holiday home elsewhere.
6. Friends Allowed
One of the benefits of co-ownership is that all parties involved have a stake in the property, so you can rest assured that the home will be treated with care and respect. That’s why Kō-owners can invite close friends and family to spend time at their holiday home, at no additional fee.
Kō also partners with Third Home, a worldwide network of luxury homeowners. If you are a Kō owner, you are eligible to swap the usage of your home with that of another luxury homeowner in a location of your choice. Imagine holidaying in a new country every year!
Want to learn more about fractional home ownership?
As this is a little-known market, we understand you may have plenty of questions. Contact our friendly team here and learn more about fractional home ownership and how you can become a Kō seller.
Disclaimer: Any product information is provided on a general advice basis only. Any advice has been prepared without taking into account any investor’s objective, financial situation or needs. The investor should then consider the appropriateness of the advice in light of their own circumstances before following the advice and seek professional personal advice from a financial adviser.
- 4 Beds
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Gold Coast, QLD 2/20 Petrel Avenue
- 4 Beds
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Northern Beaches, NSW 38 Coasters Retreat
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