Fractional Ownership
The Falkensteiner Residences edel:weiss are available for purchase in the form of sole ownership or as part of a fractional ownership model.Fractional ownership is a new investment model for owning a secondary home that combines the advantages of purchasing your own property with those oftime-sharing.
However, unlike with time-share properties in fractional ownership you actually own a share of a property along with the associated usage rights (instead of just the usage rights). Not only that, you can freely resell or pass on your share. In other words, with fractional ownership you acquire a share of a property that is held in partnership with other shareholders and which is entered in the land register. The costs associated with the purchase and maintenance of the property as well as the usage rights are divided among the shareholders proportionately.
The advantages are clear:
- You own a share of a property with the same rights as when you buy a “normal” property and you also profit from any value increases.
- You can use the property for a relatively long period of time each year (13 weeks or more).
- You enjoy all the benefits of a premium property with an exclusive service concept for a fraction of the investment and operating costs.
With the fractional ownership model for the Falkensteiner Residences edel:weiss, you have the possibility to purchase ¼ shares of an apartment. This means that you also acquire usage rights for the apartment for 13 weeks each year, with the weeks spread out throughout the year.
The allocation of usage weeks follows a clearly defined rolling system that guarantees the same usage value of the property for all fractional owners. Fractional owners are of course also free to trade usage weeks amongst themselves.
The Falkensteiner fractional model is adapted for each apartment and governs all aspects of usage and maintenance in a fair way. For each apartment, a separate company will be founded whose shareholders are fractional owners. Our Residences Manager on site will provide support for the management of the company.
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Is fractional ownership the same thing as time-sharing?
A fractional ownership model contains many elements that are similar to time-sharing models, but there are also major differences. The biggest difference is in the ownership structure: Unlike time-share properties, fractional ownership means that you own a share of a property and you are free to resell or pass on your share. Fractional owners ultimately have control over their property.The number of owners/users of the apartments also varies. Most time-sharing models have 26 to 52 different users per year for each apartment, and most time-share users visit their property only once a year, usually just for a week. This generally means that there is less of an emotional bond between the owner/user and the property, which results in less interest in maintenance and more wear and tear.
With Falkensteiner’s fractional model, there are a maximum of 4 fractional owners per property, who use the apartment more often and for longer periods – and ultimately own it as well. Therefore, all fractional owners have a vested interest in keeping the property in good shape and maintaining its value.
In addition, fractional projects are generally more spacious, of higher quality, better equipped and usually in better locations. Purchasing and holding a share costs more than just a time-share, but these additional costs are justified by the higher quality of the property, the additional services and the better condition of the property over the long term.
