The New Way to Own a Holiday Home Affordably

While you might not possibly co-own your residence with someone else and at the same time earn a dividend from it, there is a way to be an owner of a holiday home plus gain dividends from it.

Fractional ownership is a relatively new way to own real estate in Kenya, where middle class citizens have a chance to be part of luxury real estate, which would otherwise be a dream or almost impossible. But what exactly is fractional ownership?

This is a concept where a group of individuals mostly strangers come together to own a property which is of high value and thereafter share the benefits that accrue. Such property include aircraft, yachts and luxury beach or holiday homes. Each individual purchases a predetermined fraction, which can be called a share, according to their ability and need.

This is a recognised way of owning real estate, and the purchasers acquire valid documents which show ownership; which can be sold, transferred and also used to acquire credit. The major reason for this type of investment is to earn revenue because when the owners are not using their property, it is lent out to other people for commercial gain. At the end of a certain period then, dividends are shared after deduction of the expenses and taxes.

This model of ownership taps into the aspiration of the larger middle class, who desire to own high end valuable and luxury property but the costs sometimes are prohibitive to an individual. So coming together makes this dreams come true, in addition to tapping into a business system where experts work on your behalf to grow and maintain your investment.

In the case of property such as Golden Gate Holiday Villas at the Kenyan coast in Ukunda, you also get to enjoy 5 days of vacation free of charge and a discounted rate in case of extra days. In the case you don’t want to use your 5 days, then you can get money instead of the days.

Holiday homes usually come with other amenities such as swimming pools, gyms, spas, saunas, sporting and children facilities. Also locations are mostly well chosen, for example near or at the coast, near game reserves and other touristic attractions. This is to make the holiday experience wholesome and amazing. All together, these factors take up the value of the property.

The biggest advantage of fractional ownership is that it opens what would be exclusive or next to impossible to own property. The ownership document is a sub-lease agreement which is accepted and bankable.

Another advantage is you buy into a business system. The holiday home is rented out to other people thus earning a revenue. An investor rids himself of the stress of running and maintaining the property and the other small headache of having an idle house/property you use just a few times in year.

A once in while opportunity is presented in such an arrangement and the earlier someone takes advantage of it the better. With the rising property prices, owning a property in some locations in the country is a huge privilege and advantage.

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