Keep The Door Open
You're all excited; you're on the plane and jetting off to your new holiday home abroad. All you need to do now is remember the French patisserie where, over a latte, you met that estate agent whose sister has the keys to your brand new villa that has not yet been built.
All of the evidence shows that more and more Brits are in the process of buying or are planning to buy a second property abroad.
But have they really thought their move through? And will they bitterly regret it a few more months or years down the line?
Alas, many 'second homers' learn all too late that they have made a huge mistake.
They discover that their dream location is 'over-cultured,' the resident builder is not fluent in architectural English and the locals aren't as friendly as they used to be when you were just visiting on holiday.
In short, anyone thinking of buying 100% of a property abroad should tread very carefully and consider owning a proportion of one or perhaps more properties around the world using fractional ownership.
Here are a few golden rules for you to apply which should help you decide on the pros and cons of full ownership and fractional ownership before heading for those golden sands.
Consider your life stage:
Does the responsibility of buying 100% of an overseas property make sense at your stage in life?
Do you think the traditional way of financing a second property suits your lifestyle?
Can you afford to run another home alongside your own property with, like most of us, the burden of a mortgage and the responsibility of owning 100% of a property overseas?
Are you the sort of person that loves to holiday in the same place year in, year out?
Don't burn your bridges:
A "no-going-back" philosophy may give you determination to make the purchase work out, but can you live with the fact you are totally responsible for financing your purchase and its upkeep when you are not there?
Learn the language:
All too often ignored. That gorgeous rustic farmhouse may seem ideal, but you will probably want to be able to communicate with your neighbours who perhaps won't take kindly to somebody who expects them to speak English.
Do your maths:
The pound is strong at the moment. Your new property seems a great deal now, but how easy will it be to sell on? Do you know the tax laws? And have you got a viable exit strategy?
Why are you buying?
If it is for an investment, are you sure that the property prices in your desired location will rise 20% a year?
Do you need to rent out the property during the year to cover mortgage payments?
If so, how are you going to market the property and can you trust the local estate agents in the country where you have purchased?
Do in-depth research:
Make sure you know all there is to know about where you are buying; are you nervous about your potential purchase?
Attitude to risk:
Are you happy to be 100% 'exposed' to your property if the overseas market crashes?
So what are the alternatives?
If your answers to these questions have raised doubts, then fractional ownership may be the easier and simpler way for you to vary your lifestyle cost-effectively.
Articles
Any:
An Introduction to Fractionals
Art:
Fractional art donations prove charity starts at home
Handbags:
25 questions to ask about fractional handbag clubs
Boats & Yachts:
25 questions to ask a fractional boat operator
Fractional Boats in New Zealand
Pushing the (fractional) boat out
Boats & yachts- what's on offer?
Fractionalize This
Classic Cars:
25 questions to ask a fractional car club
Why opt for a 'fractional' classic car?
Classic Car Club Feature
Getting the most out of your fractional ownership experience
Why Not Rent?
You've Always Loved Cars?
Fractional Life hits Le Mans
Destination Clubs:
Lifestyle Asset Group: the best of both worlds
Relationship Selling to Todays Affluent Fractional Clientele
Mixed Use: Avoiding a mix up
Focus on the Registry Collection
DCs- Variety is the spice of (fractional) life
Fractional Property Glossary
Aspirational vs. Inspirational Media
Member Strategies For Lean Times
Brand Maintenance During An Implosion
What Goes Up Must Come Down...
Savings through Foreign Exchange
Fractional Finance Solutions
Destination Clubs- an alternative?
Fractional Ownership Heads to Europe
Private Residence Club Perspective Part 1
Quintess
Ultimate Resort
Calistoga Ranch
The Weybridge Collection
The Villas at The Grand del Mar
The Solstice Collection
Vacation Visions: Exceptional Exterior and Interior Designs of Residence and Destination Clubs
Why the Boomers will change second home ownership in the US
Middle East Leisure Real Estate Market Booming
Bear Mountain Resort - A View from Paradise
New Association For Fractional Ownership
The New Vacation: A Time to Retune Re-Connect
Consultancy:
Profit Opportunities in Luxury Fractionals - A Summary
Exchange:
The Golden Rules of Fractionals
Racehorses:
A Horse by The Name of Fractional Life
Running Down a Dream
Corporate Hospitality:
So Long to the Suite Life
Aircraft & Jets:
25 questions to ask a fractional jet operator
Top tips for fractional jet travel
Jet Republic pilot applications reach new heights
Focus on Fractional Jet Europe
A closer look at fractional aviation
CoGoJets introduces jetpooling
Joining the jet set
Fly for a fraction of the cost
Flying without Wings
Can't afford that jet? Rent it
How Private Aviation Works
Legal Services:
Fractional ownership: is it timeshare in disguise?
Private Clubs:
A tale of two cities - Private residence clubs in San Francisco and London
The Italian Job: interview with Byrne Murphy of Palazzo Tornabuoni
Mixed Use: Avoiding a mix up
PRCs with added benefits
Northstars 'stay and play ' option
Private Residence Club Perspective
Fractional Property Glossary
What are the ingredients for the ideal Private Residence Club?
Savings through Foreign Exchange
Fractional Finance Solutions
Real estate:
Fractional Life in Ireland: For peat's sake!
Fractional Summit USA 2010- Speaker biographies
25 questions to ask about fractional property ownership
Fractional Summit Speaker Biographies
Fractional Property - The New Normal
Gay Community Embraces Fractional Property
Fractional Real Estate Investment Or Lifestyle Purchase?
Fractional Sales: Square Pegs In Round Holes?
Fractional Real Estate Commissions
Urban Fractionals
European Mixed-Use Resort Development in 2009
Mixed Use: Avoiding a mix up
Property- the legal issues
Fractional Holiday Getaways
Fractionals-Recession beaters?
State of fractionals
Fractional Property Glossary
Savings through Foreign Exchange
Fractional Finance Solutions
Fractional Property- the legal issues
Fractional Property Regulation
Fractional Ownership? We'll have a piece
Keep The Door Open
Why Fractional Property?
The Benefits of Fractional Ownership in Private Residence Clubs
Middle East Leisure Real Estate Market Booming
New Association For Fractional Ownership
Saving Homes, Homeowners and Banks Through Fractional Ownership?
Lifestyle:
Savings through Foreign Exchange
Convergence in the Fractional marketplace
The stock market for songwriters
Supercars:
25+ questions to ask a fractional car club
Live The High Life In A Fractional Supercar
Why Individuals Should Join A Supercar Club
Why opt for a 'fractional' supercar?
Focus on Marque II
Eco-road-warriors- How will the supercar club line-up of the future change?
Fresh metal- What's new on the supercar front?
So Why Not Buy?
You've Always Loved Cars?
Supercars- The cars of 2006/7
Let's Take The Lamborghini
Fractional Life hits Le Mans
Ascari Racing Festival Weekend
Fractional Supercars at the MPH Show
GROUP20 The SuperCar Club announce their 2007 Road Show in aid of Children In Need
New supercar club with green credentials
Luxury Motorhomes:
Denver RV show ready to roll
Wine & Spirits:
Wine
