Purchase your share of luxury in Manila: Fractional ownership explained

Reading Time: 2 minutes

The sharing economy is on everyone’s lips. Share your car for a taxi ride, your home as travel accommodation – you can even share your tools, clothes and garden in this new economy! The sharing concept even extends to more expensive things you might not even have thought about, like owning and sharing a luxury hotel property.

CPGinc-header-fb

Here’s where the idea of fractional ownership comes into play.

Fractional ownership is when individuals purchase part of a high-value tangible asset (e.g. a hotel resort property) and reap the rewards of ownership.

One of the main motivators for a fractional purchase is the ability to share the costs of purchasing and maintaining an asset that will not be used full-time by one owner. Another is to have access to it in the form of free days of use.

CPGinc-side-imageWhile high-end property is one example for fractional ownership and has become increasingly popular in recent years, it is also used for other expensive items such as sports cars, yachts and even private planes. In fact, the concept has its roots in the shared use of business jets by companies and privateers through day-use, multi-year contracts or charter-like arrangements.

The idea can be compared to collectively buying a cake.

Imagine a full gourmet cake that costs P1000. You want to try it but only have P250 in your pocket. One solution would be to find three other people with P250 each, collectively purchase the cake and share it in four slices.

Alone, you wouldn’t have been able to afford the cake. By sharing, everyone gets a piece.

Fractional ownership is similar. A group of (unrelated) individuals comes together to buy a property (such as a hotel resort). Each one pays for a “slice” – not a physical part of the building but a part of the right of ownership.

The collective becomes the owner and the hotel is rented out to visitors. To continue our analogy, each slice of cake yields dividends in the form of rental income as well as the right to use the hotel room for a set number of days freely each year.

Both of these returns can be customised to each individual’s lifestyle and needs.

Now, perhaps you’ve heard of “time sharing” a hotel property and are wondering if this is the same thing. It’s similar in the sense that fractional ownership provides the same freedom and usage benefits found in time sharing, but with the significant difference in that as an investor you own shares of the property as opposed to just being entitled to units of time or usage rights.

Another essential difference is that as the property appreciates in value over time, so do the units of a fractional owner.

CPGi-FractionalOwnershipExplainedFractional ownership has become an attractive real estate hybrid introduced in the Philippines for the first time through Novotel Suites Manila.

By investing in fractional ownership of a hotel business you can capitalise on the country’s booming tourism industry.

It’s also relevant to well-traveled overseas Filipino workers who want a recurring financial return plus the premium pleasure of a customised luxury vacation home, without the worry of upkeep, at an affordable price.

Fractional ownership is a marvelous way of enjoying something big through the power of the sharing economy.

If you’re interested to learn more about the Philippines’ very first fractional ownership offering, visit www.novotelsuitesmanila.com

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

The sharing economy is on everyone’s lips. Share your car for a taxi ride, your home as travel accommodation – you can even share your tools, clothes and garden in this new economy! The sharing concept even extends to more expensive things you might not even have thought about, like owning and sharing a luxury hotel property. Here’s where the idea of fractional ownership comes into play. Fractional ownership is when individuals purchase part of a high-value tangible asset (e.g. a hotel resort property) and reap the rewards of ownership. One of the main motivators for a fractional purchase is...

Reading Time: 2 minutes

The sharing economy is on everyone’s lips. Share your car for a taxi ride, your home as travel accommodation – you can even share your tools, clothes and garden in this new economy! The sharing concept even extends to more expensive things you might not even have thought about, like owning and sharing a luxury hotel property.

CPGinc-header-fb

Here’s where the idea of fractional ownership comes into play.

Fractional ownership is when individuals purchase part of a high-value tangible asset (e.g. a hotel resort property) and reap the rewards of ownership.

One of the main motivators for a fractional purchase is the ability to share the costs of purchasing and maintaining an asset that will not be used full-time by one owner. Another is to have access to it in the form of free days of use.

CPGinc-side-imageWhile high-end property is one example for fractional ownership and has become increasingly popular in recent years, it is also used for other expensive items such as sports cars, yachts and even private planes. In fact, the concept has its roots in the shared use of business jets by companies and privateers through day-use, multi-year contracts or charter-like arrangements.

The idea can be compared to collectively buying a cake.

Imagine a full gourmet cake that costs P1000. You want to try it but only have P250 in your pocket. One solution would be to find three other people with P250 each, collectively purchase the cake and share it in four slices.

Alone, you wouldn’t have been able to afford the cake. By sharing, everyone gets a piece.

Fractional ownership is similar. A group of (unrelated) individuals comes together to buy a property (such as a hotel resort). Each one pays for a “slice” – not a physical part of the building but a part of the right of ownership.

The collective becomes the owner and the hotel is rented out to visitors. To continue our analogy, each slice of cake yields dividends in the form of rental income as well as the right to use the hotel room for a set number of days freely each year.

Both of these returns can be customised to each individual’s lifestyle and needs.

Now, perhaps you’ve heard of “time sharing” a hotel property and are wondering if this is the same thing. It’s similar in the sense that fractional ownership provides the same freedom and usage benefits found in time sharing, but with the significant difference in that as an investor you own shares of the property as opposed to just being entitled to units of time or usage rights.

Another essential difference is that as the property appreciates in value over time, so do the units of a fractional owner.

CPGi-FractionalOwnershipExplainedFractional ownership has become an attractive real estate hybrid introduced in the Philippines for the first time through Novotel Suites Manila.

By investing in fractional ownership of a hotel business you can capitalise on the country’s booming tourism industry.

It’s also relevant to well-traveled overseas Filipino workers who want a recurring financial return plus the premium pleasure of a customised luxury vacation home, without the worry of upkeep, at an affordable price.

Fractional ownership is a marvelous way of enjoying something big through the power of the sharing economy.

If you’re interested to learn more about the Philippines’ very first fractional ownership offering, visit www.novotelsuitesmanila.com

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid