Harmony Ownership for Fractional and Shared Ownership

Fractional Ownership in Spain

Rob — 2008-02-23T09:36:23Z

Fractional ownership of properties can mean a lot of different things and in Spain that is very much the case.

The developers with their predominantly European market have swung behind fractional ownership in a big way.

Everything that once you could buy as timeshare is now available on a fractional ownership basis.

Fractional ownnership seaside developments offering apartments along the Mediterranean, fractional ownership villas clustering around new golf courses and individuals seeking co owners for old Spanish houses in the more rustic regions.

We are keepingg a close eye on the larger ex timeshare developers as we know many among them see France as the best new market where timeshare was a nono fractional ownership is a big yes.

Hopefully better planning controls will save us from the concrete cliffs that now stand between Spain and the sea.

Fractional Ownership in Italy

Rob — 2008-02-23T09:25:37Z

The big boys are here, the international luxury fractional destination clubs are now well established in Italy, however it is the romance of the smaller private Tuscan fractionals that warm my heart.

With the American Timbers group and their luxury fractional villas at Castello di Casole, and the Scottish Craigenmore group's more affordable Borgo di Colleoli development the south of Italy has already seen fractional ownership become an important part of the real estate market.

My heart belongs to neither of these but to the charm of the Borgo di Vagli fractional ownership properties. Here on a tumbling Tuscan hillside, an old hamlet of rustic houses has been converted and is, mainly has, been sold off on a fractional ownership basis.

Perhaps it is the thick stone walls and old details that are so much like the rural properties of my part of the sout of France that draws me, but more likely that this is the type of fractional ownership that i like.

Well finished, well furnished rustic charm, not international hotel suites but fractional on a human level.

I will be adding photos and more details of this fractional ownership scheme at a later date.

Fractional Ownership in the West indies

Rob — 2008-02-23T08:52:42Z

The Caribbean has always been a popular holiday destination; For good reason, sun, sand, lifestyle…..

Now it has become a shared experience - fractional ownership is the king of the real estate market.

In the West Indies, fractional ownership is now well established as the way to sell.

Barbados, St Lucia, St Barts, Nevis, Turks and Caicos, you name it, all these islands have fractional ownership developments springing up to the left , the right and the center.

Now Aruba and St Maartens are being spoken off in the international pres as the “hot” islands for the further development of fractional resort and second home properties. Hotels Magazine says that there are over 2,000 units already planned for Aruba! The other “hot spot” is St. Maarten with Pelican Bay Marina as a specific example of what is happening on St. Maarten. And, the fractional properties “market of tomorrow” is the Dominican Republic.

As Aruba is a Dutch colony, with a population speaking English Spanish and Dutch, the buyers there have mainly come from Europe, the preponderance from Britain.

St Maarten as a split island, half Dutch half French is also selling well to Europeans.

Both the islands also have another advantage - price. Land prices and hence property prices lag far behind their illustrious neighbours.

On one beachside fractional development on Aruba, 140,000 euros would buy you a four week share of a four bedroom villa including furniture pack. with a management and rental program for times when the owner can not make use of his fractional ownership villa.

inc-orleftnav

Rob — 2008-01-28T09:00:35Z

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Contact Us

Rob — 2007-04-24T08:56:32Z

Please fill out the form below and we will get back to you as soon as possible.

Please fill out the form below and we will get back to you as soon as possible.

Fractional Ownership in France

Rob — 2007-04-24T07:08:20Z

Why fractional ownership? Why France? Fractional ownership is a way of buying the holiday property of your choice at an affordable price with small shared costs. Here in France we have seen property prices rising to new heights.

With the rise in French property prices, simple village house with terrace within 40 minutes of the beaches in a popular Mediterranean South of France region like the Herault now costs from 150,000 euros and up. The 50,000 euro give aways no longer exist.

Breaking News Mediterranean sea view apartments with shared pool coming up for completion end September 2008. The developers share our belief in France's fractional ownership future and once all the charges and other details have been ironed out we will be marketing these on a fractional ownership basis with no bars - no one has to wait for x amount of shares to be reserved before buying and enjoyiong their fractional ownership property.

In the past people have bought French holiday properties and relied on rentals to pay the mortgage, leaving the owner with use outside the high season. The last two years have seen the rentals market becoming uncertain, and with the rise in property prices even 10 weeks worth of rentals will not cover costs.

It is a fact that 70% of British, American, Irish owned holiday homes in France are used for less than 1 month out of each year. So why pay all the taxes, costs of maintenace etc for 12 months?

Why not buy with a group of like minded Francophiles? Share the costs, share the property, share the pleasure.

Our idea and guiding mission is to provide genuine French fractional ownership opportunities.

1.We will only list offers with realistic purchase price, realistic administration, maintenance, care and change over costs. 2. All fractional offers made through Harmony Ownership must be genuine fractional offers and not disguised time share. Full ownership and control for the owners, no hidden controller or costs. 3. We will give preference in listing French fractional offers where the holding body is a proper French legal company - any foreign company ownership is fraught with future legal, tax and inheritance issues. 4. We will give preference and mark out the fractional French properties which will be wholly owned by a French limited liability company with full control and all shares owned by the fractional share owners.

We have consulted international and French lawyers about the best way/ only way to structure ownership and as this is the beginning of French fractional ownership, it is very important to start in the right way.

Having looked at various French fractional offers that have recently emerged on the internet, we have come down to a very select group that we are happy to list. We had three more but they are now sold out.

However we have clients who have decided that they want a share of different types of properties and they are confident enough to want tpo buy the whole property and then release the equity and time to other like minded people as time goes by. Hence more listings will appear.

We are also happy to find properties that fit the the wishes of a group of buyers. So if you would be interested in French fractional ownership, but are not interested in our present listings, contact us and tell us what you would like. We can find the property set up the owners company, handle the French legal and administrative side, set up a management company ( a simple majority vote of the owners can change the management company at any future date) If we can form a group with the same requirements, then we will let you know and your dream could become French realty!

You will find pages on the site that explain French fractional buying procedure, structure, how weeks/months are allotted and of course the costs.

Remember with French fractional ownership the Harmony way, you are the owner, not some sort of leaseholder or time share victim.

Think about it, a sixth share, entitling you to two months use a year of the simple village house with terrace within 40 minutes of the beaches in a popular Mediterranean South of France region like the Herault costing 150,000 euros, would only be priced at 25,000 euros.

Fractional Ownership - recent developments

Tony Tidswell — 2007-01-09T08:58:15Z

As spring approaches, Fractional Ownership in France looks like being the next big property boom.

At Harmony Ownership we have been "making haste slowly" with our Fractional Ownership sales in France as we have been very concerned about the correct legal structure relating to how shares in a French property can be allocated or resold. This has delayed our marketing some of the offers.

Our concern has been over the responsibilities for taxation. All the people we know currently selling shares in French property on the basis of Fractional Ownership are doing this through a device such as an American LLC, Homeowners Association or a trust set up to hold the shares of the French entity which is a SCI (Société Civile Immobilière ) . It is claimed by the people and companies selling property for Fractional Ownership in France that this will avoid taxes on the transfer of shares, capital gains tax, inheritance tax, wealth tax, property tax or any tax on the income derived from the property.

In fact we believe the opposite is true. By creating an entity "offshore" in the USA, UK or any other country, the French tax authorities will regard this as a way of evading legal taxation and will consider any property as a commercial undertaking and this will then attract an extra annual taxation in addition to all the taxes which were though to be avoided, plus a penalty if this is something that is considered as deliberate evasion.

It is most important that any property which has shared ownership is correctly structured in an SCI and that the SCI is absolutely transparent in that the owners are correctly registered . It is also most important that the SCI is not a commercial company and that it does not directly take money or rentals.

If the property is structured in this way then it is a much simpler procedure, as are all French real-estate transactions, and the French SCI is designed for exactly the correct purpose for Fractional Ownership.

There is no silver bullet to avoid taxes due, or derived from, a property in France. Any attempts to restructure ownership through companies, charities or trusts will be considered by the French authorities are evasion and can attract sever penalties.

Fractional Ownership is a wonderful way for you to invest in property, keep the property management under control and to enjoy the benefits of owning your own property without being fixed to one spot.

Look through the offers on the Harmony Ownership pages and be assured that anything we do there will be safe and secure and within all French legal requirements.

Rob Thorne

Rob — 2007-01-06T13:36:24Z

We came to France in 1988, the we being myself, my wife, two children and two dogs. After spending a year looking at propeties and sampling areas in the south of France, we settled in the Herault mediterranean region of southern France.

We now have four children, four dogs, four horses and several other sundry animals and are all too happy with our initial decision to move.

I have worked in real estate and vacation rentals.

First Off

Tony Tidswell — 2007-01-05T09:32:04Z

- New section

Fractional Ownership in France

Rob — 2006-12-11T08:27:08Z

Shared Property Ownership is the same as Fractional Property Ownership

So, What is a fractional property ownership?

In 1994, a new concept debuted in the United States - fractional ownership of vacation homes. Patterned after fractional ownership of private jets, the concept formalises the idea of a small group pooling their resources to buy a getaway place.

A second home is the ultimate discretionary purchase. People who own a place at the beach, the lake or in the mountains often are quick to express frustration at not being able to spend more time there. Why have the expense of a mortgage, upkeep, insurance and taxes for a place you don't use more than a couple of weeks a year?

To deal with that situation, family members and friends often join forces to buy a place. It cuts down on the cost and everyone gets to enjoy a place that is much more than just a hotel room.

Fractional ownership offers individuals the opportunity to buy partial ownership of a really nice place

The ownership arrangements usually divide the ownership into fourths, sixths, or 12ths, with each owner having an equal number of days a year to use the property.

Sharing the ownership of a property is a viable alternative to buying a property that you may only use a few weeks a year. Rising pricesmean that people wanting to own a holiday home are finding it harder to raise the finance - shared ownership could be the answer. You hold the actual Title Deeds and own a percentage of that property. Shared or co-ownership comes with a property deed making it a true asset that will appreciate at full market rates. Good returns on your investment are also possible in the form of rental income if you choose to let out any of the weeks of your occupancy plan that you decide not to use for yourself.

Many outright owners tend only to use their property for 4-12 weeks per year, yet still have to bear the costs attached to 52 weeks. The most significant benefit of buying a property through shared ownership, is the ability to match your purchase with your expected use of a holiday home. When combined with the services and amenities of living within a self-contained resort you have very compelling reasons to consider shared ownership.

The shared ownership concept is based around 4 to 12 co-owners purchasing a share of a property. The purchase is exactly the same as if you were buying a property outright.

Typically, those who buy into shared ownership are people who can afford to purchase outright but do not have the time to use it and do not want the responsibilities attached to outright ownership. Another advantage is that you can purchase a more luxurious property than you may otherwise have been unable to afford.

Summary of Fractional Ownership

The occupancy plans gives you complete freedom of choice.

Maintenance and care of the property can be undertaken by either independent management company eliminating many of the headaches associated with owning a property.

All annual running costs are divided equally among the owners to cover rates, insurance, utilities standing charges, administration, periodic external repainting and maintenance of communal areas.

Shared Ownership schemes are not new. They have been around for many years but mainly associated with the purchase of the ultimate in luxury Private Yachts and Jet Aircraft but now you are able to extend this luxury to a dream home in the sun.

The concept of Shared Ownership in property is now gaining momentum as resort real estate prices escalate and consumers seek a steppingstone to the perfect holiday home in the sun

More immediate returns on your investment are also possible in the form of rental income should you choose to let out any of the weeks of your occupancy plan that you decide not to use for yourself.

Typically, those who buy into shared ownership are people who can afford to purchase outright but do not have the time to use it and don't want the responsibilities attached to outright ownership.

The purchaser of shared ownership has the flexibility to choose the right option that suits their needs, appealing to retired couples, families and young couples alike.

All owners are governed by the conditions set out in a pre-signed shared ownership agreement detailing procedures for any damage or misuse giving you piece of mind that your investment is still in good hands while you are not there.

Is fractional property ownership for you?

* Are you looking for a second home and you can not use it 100% of the time? * Are you looking to invest and earn from appreciation of a vacation home? * Are you interested in a second home but you can not afford it 100%? * Would you be interested to own a portion of a property and abide by rules and regulations set forth for both operations and future sale?

If you have answered yes to the above, you are a good candidate to look at possibilities of choosing a fractional property ownership.

You will be responsible for your percentage of the down payment, the closing costs and maintenance charges. The financing and obtaining the mortgage and closing the transaction will be the next step as you are responsible to sign the loan documents for the percentage of your ownership.

What are the typical rules and regulations of ownerships?

A typical partnership agreement which must be signed by you and other owners will have the following typical characteristics:

* Duration of the partnership agreement. * A projected goal for the sales price to sell or renew the agreement. * The usage of the property and time periods on and off season. * Procedures to sell your percentage if you need to sell. * Management, maintenance and up keep costs.

Such agreement would than be drafted once your group's objectives are clear and prior to finalizing the transaction in the notary, your attorney can than have it recorded. Objectives vary depending on your age, long or short term investment goals, usage period.