Fractional or timeshare - what's the difference?

Facts about timeshare

  • You are purchasing the right to access and use a property but you never own it. You do not benefit from capital appreciation or rental income from your timeshare.

  • The developer will sell all 52 weeks and leave nothing to rent out and generate an income to cover maintenance costs. This is why all owners are expected to pay high maintenance costs every year regardless of whether they use their week or not.

  • As the developer sells in weeks, the prices are highly inflated and not in keeping wtih the true value of the property itself.

  • Timeshare is often linked wtih a set period of time and not transferrable and often expires.


Facts about fractional

  • You co-own the title deed to the property and benefit from capital appreciation the property makes. You own an asset.

  • You leaseback your weeks, or some of them, into the rental scheme and benefit from rental income and the returns in the resorts of the properties we promote are net of maintenance costs.

  • The price of a fraction in a property is a 13th of the full unit price and a true reflection of the property value, it's not inflated.

  • You own the property/asset until you decide to resell it, and it is an inheritable/transferrable asset.

So how do the rental returns work?

You are guaranteed, contractually a fixed return over an 11 year period net of maintenance costs. This translates as 5% for 1 year, 6% for 5 years and 8% for 5 years. The first 12 months are paid in advance and the future returns are paid quarterly in arrears. Prior to completion of the property the return is paid as a cashback and then once completed as a rental. The full fixed return is paid when taking no personal usage. If the client takes personal usage then the return reduces by 2% for each week.

What are the ownership costs?

35 euros per m2 including maintenance, insurance and local taxes. The returns of 5%, 6% and 8% are NET of these costs.

What if i want to sell my fraction?

You can sell your fraction on the open market at any time and at any price. The other fraction owners must get the first choice on any re-sale and will very likely be interested in purchasing a further fraction of a property they co-own. There is an assured resale clause in the contract, which means that you may apply for an assured resale after year 5. You must give 12 months notice when applying for the assured resale and the company will guarantee that your fraction is sold within 6 months of your notice period. If it is not sold within 6 months, the client will receive a 1% penalty per annum until it is sold.

Can I book a viewing trip even though the properties haven't been built?

Yes! You can book a viewing trip at any time by contacting Agence Beaumont Immobilier. You will be escorted around the site and will be given an opportunity to visit completed properties and look at your potential property on-plan.

Which holiday park do you promote?

We are currently promoting all of the properties from studio apartments through to 3 bedroom treehouse properties on a golf & spa resort in central France. They are all set within the grounds of a stunning french château, which boasts an 18-hole golf course, world-class spa and children's adventure park.

To find out more click here: my holiday home in France

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