The charms of fractional ownership: Passive income and active enjoyment

Reading Time: 2 minutes

Today’s markets can be challenging for investors: low interest rates, volatile stocks, tiny yields on bonds, currency fluctuations – and so on. No wonder that many are on a quest for alternatives that provide a bit more enjoyment than watching one’s investments taking a roller-coaster ride on the capital market.

Novotel_Investvine_Charms_1
Here’s where the charm of commercial fractional ownership comes into play. It is a relatively new concept even in its place of origin, the United States, and has recently been brought over to the Philippines for the first time in the form of a “property and lifestyle investment” opportunity.

Collective Investment

As we explained in a previous article, fractional ownership is a collective investment in a high-value tangible asset and has its roots in the sharing economy. But, unlike other collective investments such as Real Estate Investment Funds, fractional ownership has benefits in addition to shared passive income, such as:

  • The right to use a high-end property for a predefined amount of time per year
  • Membership to residence clubs with their exclusive activities and privileges
  • The right to use other residences under a global hotel or resort network

Fractional ownership is a combination of notable passive income and active enjoyment. It is perfect for seasoned investors as well as a younger generation of Millennials who understand and fully participate in expressions of the shared economy.

The right to luxury           

Novotel_Investvine_Charms_2Many people want to buy and enjoy high-end properties but, on their own, cannot afford it. What fractional ownership does is it allows these individuals to avail of luxury properties by sharing the investment with like-minded others.

You needn’t deal directly with different investors, which is neither easy nor practical; instead, fractional ownership is a framework that makes it simple to invest, without having to worry about the intricacies and complexities of shared ownership.

In the Philippines right now, the luxury hotel Novotel Suites Manila by Century Properties, offers fractional ownership with many of the aforementioned benefits.

Owners will receive the right to enjoy a free stay for a set term every single year. Meanwhile, as the hotel generates income, owners share a portion of this income by virtue of being shareholders, i.e. deeded partial owners of the property.

They also have no worries as far as property management or maintenance is concerned; it’s all taken care of by the hotel, for a built-in fee.

In addition to this, Novotel Suites Manila shareholders are entitled to exchange their granted vacation time within a vast network of nearly 3,000 resorts in over 80 nations, courtesy of Novotel’s partnership with Interval International. So if you want to spend your 4-week vacation time in a similar-sized unit in one of Accor’s other destinations, you are privileged do to so.

Furthermore, you enjoy priority service and discounts on room rates and dining at over 600 participating hotels and resorts in 17 countries across Asia-Pacific.

Flexible Investment

Fractional ownership is highly flexible. A share of a property is saleable or transferable in case the owner decides he or she no longer wants it – depending on demand on the secondary market, of course. Naturally, a purchase made in a luxurious development is an investment that can increase in value, especially if the property is of high standards, certified by the financial supervisory authority, located in a good, well-frequented location, and is overseen by reliable and accountable management.

If all these conditions are met, getting into top-property fractional ownership is a solid “lifestyle investment” with potentially great yields and active enjoyment in one harmonised package.

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Today’s markets can be challenging for investors: low interest rates, volatile stocks, tiny yields on bonds, currency fluctuations – and so on. No wonder that many are on a quest for alternatives that provide a bit more enjoyment than watching one’s investments taking a roller-coaster ride on the capital market. Here’s where the charm of commercial fractional ownership comes into play. It is a relatively new concept even in its place of origin, the United States, and has recently been brought over to the Philippines for the first time in the form of a “property and lifestyle investment” opportunity. Collective...

Reading Time: 2 minutes

Today’s markets can be challenging for investors: low interest rates, volatile stocks, tiny yields on bonds, currency fluctuations – and so on. No wonder that many are on a quest for alternatives that provide a bit more enjoyment than watching one’s investments taking a roller-coaster ride on the capital market.

Novotel_Investvine_Charms_1
Here’s where the charm of commercial fractional ownership comes into play. It is a relatively new concept even in its place of origin, the United States, and has recently been brought over to the Philippines for the first time in the form of a “property and lifestyle investment” opportunity.

Collective Investment

As we explained in a previous article, fractional ownership is a collective investment in a high-value tangible asset and has its roots in the sharing economy. But, unlike other collective investments such as Real Estate Investment Funds, fractional ownership has benefits in addition to shared passive income, such as:

  • The right to use a high-end property for a predefined amount of time per year
  • Membership to residence clubs with their exclusive activities and privileges
  • The right to use other residences under a global hotel or resort network

Fractional ownership is a combination of notable passive income and active enjoyment. It is perfect for seasoned investors as well as a younger generation of Millennials who understand and fully participate in expressions of the shared economy.

The right to luxury           

Novotel_Investvine_Charms_2Many people want to buy and enjoy high-end properties but, on their own, cannot afford it. What fractional ownership does is it allows these individuals to avail of luxury properties by sharing the investment with like-minded others.

You needn’t deal directly with different investors, which is neither easy nor practical; instead, fractional ownership is a framework that makes it simple to invest, without having to worry about the intricacies and complexities of shared ownership.

In the Philippines right now, the luxury hotel Novotel Suites Manila by Century Properties, offers fractional ownership with many of the aforementioned benefits.

Owners will receive the right to enjoy a free stay for a set term every single year. Meanwhile, as the hotel generates income, owners share a portion of this income by virtue of being shareholders, i.e. deeded partial owners of the property.

They also have no worries as far as property management or maintenance is concerned; it’s all taken care of by the hotel, for a built-in fee.

In addition to this, Novotel Suites Manila shareholders are entitled to exchange their granted vacation time within a vast network of nearly 3,000 resorts in over 80 nations, courtesy of Novotel’s partnership with Interval International. So if you want to spend your 4-week vacation time in a similar-sized unit in one of Accor’s other destinations, you are privileged do to so.

Furthermore, you enjoy priority service and discounts on room rates and dining at over 600 participating hotels and resorts in 17 countries across Asia-Pacific.

Flexible Investment

Fractional ownership is highly flexible. A share of a property is saleable or transferable in case the owner decides he or she no longer wants it – depending on demand on the secondary market, of course. Naturally, a purchase made in a luxurious development is an investment that can increase in value, especially if the property is of high standards, certified by the financial supervisory authority, located in a good, well-frequented location, and is overseen by reliable and accountable management.

If all these conditions are met, getting into top-property fractional ownership is a solid “lifestyle investment” with potentially great yields and active enjoyment in one harmonised package.

Share your vote!


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