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What Does A Fractional Buyer Look For?

Just as fractional properties vary in size, type and location, the reasons why people purchase one differ greatly. But, writes Lisa Migani, if your fractional offers certain elements it can prove very attractive.

Developing a property in one of the world’s most popular holiday destinations is all well and good. But if you really want your fractional to flourish you should ensure you’re offering buyers exactly what they want.

This goes much deeper than great interiors and if your fractional offers the following features it will boost its value proposition to buyers.

What buyers look for:

  • A wise purchase: Fractional properties by their very nature offer this, giving buyers a rational purchase. A fractional is good value as buyers are only paying for the time they use. Equally important is that in sharing operational and upkeep with other owners, the overall cost of maintaining the property is reduced.
  • Hassle-free management: Buyers recognize the added value of fractional management services such as quality management and maintenance services, 24 hour security and pre-arrival preparation. Once again, they are only paying for what they use rather than the year-round fees associated with a secondary residence.
  • Exclusivity and experiences: It helps if your fractional is close to golf, ski or beach resorts, in a world-class city or offers unusual facilities.
  • A potential investment: Although sold primarily as an investment in lifestyle, the majority of fractional purchases are structured so that any increase in equity accruing upon sale goes to the owners. The resale value of a fractional property typically follows that of wholly owned real estate in that location.
  • Discretionary income: A development that is an attractive rental destination can appeal to buyers looking for an investment.
  • Quality accommodation: They appreciate the build quality, interiors and services that are comparable to those found in good quality hotels as well as preferential services at local recreational facilities, golf clubs or spas. A small handful of luxury developments offer exceptional services such as use of yachts and private jets.
  • Lower prices: Entry-level prices can be as little as £4,000. But in upscale destinations such as Provence where a wholly owned two-bedroom apartment could cost €1m, fractional developments currently start at €180,000 for six weeks usage. Either way, a fractional can prove a good value purchase.
  • Greater flexibility of use: fractional developments that offer international exchange potential give buyers increased flexibility. The exchange can be facilitated either through a destination club programme or affiliation to exchange partners such as Group RCI’s The Registry Collection and Interval International’s Preferred Residences.

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