Collective Ownership in Italy
What is Fractional Ownership ?
Fractional or Collective ownership means that you share the full ownership of a property with other co-owners. This could be other members of your family or friends, but in most cases this will simply be other investors of the Collective Ownership Property. You own the building as if it were your own - just shared rather than the whole. This makes it as much an asset as a traditional purchase, but without the worries of property management when you are not there.
The ownership is defined, as with any other property, by the title deed. This is owned by a single entity such as a Limited Company. The shares in this entity are referred to as fractions - typically 10 or 12 of them. This gives you the right to stay exclusively in your property for the corresponding part of the year - usually 4 or 5 weeks. As you own a share(s) in the company, you can of course sell your share whenever you want
The property will be managed by a company established by the developer but funded by the Collective Owners who are free to choose who manages the property. Each fractional owner contributes to an annual maintenance fund. Good management is a key aspect of Collective Ownership.
Over many years Realpoint have built up a reputation for quality service in the sales of properties and we continue to provide this service in the Fractional / Collective Ownership world by ensuring we only deliver properties that meet our client's expectations.
Below you will find some background to the fractional ownership market, how it has come to fruition in Italy and discover one of the best properties we have seen - the Pinelli Estate.
A Brief History
In the US, fractional ownership has been around for over 20 years, and has been used for both condo-hotels, villas, but also for private jets and yachts. This makes a lot of sense - why have the hassle of full ownership with all the costs of maintenance when you only use something for a few weeks per year.
In Europe this concept has been slow to gain acceptance but in the last few years the interest has increased dramatically. Fractional or Collective ownership is the fastest growing segment of the property market and is rapidly catching on in Italy, Spain, France and Portugal, in fact throughout Europe.
Why Fractional ?
Italy, along with much of Europe, is embracing this way of buying property. Developers see this as a new alternative to the traditional model of build & sell, and also find that there is much more interest from buyers because of the additional services provided which are so important for the property to be successful.
Italian property lends itself to this model in two ways. Firstly, there are numerous high-value properties on the market which only appeal to a few very affluent individuals. With this method of ownership you can buy into a whole property on a shared basis, and have exclusive weeks at a luxury property depending on the number of shares you own.
How it Works
An example from the Penelli Estate
We have put together an example guide to how fractional ownership works Click below to view to the Penelli Estate.
An Example of Fractional Ownership in Action
Your own Fractional Ownership Property
Due to high demand, we have been searching Italy to find the next fractional ownership properties for you. We recognise that the property has to meet all the criteria that you expect from us for your ideal Italian home, so it takes time to find that perfect property.
When we do find a suitable property we carry out an in-depth due diligence exercise on the property before we go ahead and add it to the fractional portfolio.
If you are looking for a fractional property in other areas then please have your own ideas We want to keep you informed about these exciting new properties but of course until we have completed our due diligence and secured the property they are not available for purchase.
In order to avoid any disappointment, we have provided you with a means to register your interest with us - so that you can make sure that when the property comes on the market as a Fractional Ownership property then you will have first refusal. It costs nothing to register your interest, so take a look at the properties and just let us know using the "Register Interest" button on the property details pages.
Featured Fractional Oppurtunity
The Pinelli Estate
The Pinelli Estate started off in Campania with the creation of Il Rifugio on an estate that extends to over 35 acres on rolling hillsides, at just over 300 metres elevation, facing the Cilento National Park and the Tyrrhenian Sea, with Capri and the Amalfi Coastline on the horizon.
The Pinelli brand is expanding and now includes Puglia with the addition of La Vecchia Masseria - the first of many exclusive and characteristic Pugliese properties.
Realpoint Property has been awarded the exclusive right to sell the the unique properties in the Pinelli Estate portfolio. Visit our property web pages for more details (below) for the latest information about these unique properties and how you can secure your slice of paradise.
The Pinelli Estate
Puglia
Puglia is a new addition to the overall Pinelli fractional ownership portfolio. The first property is La Vecchia Masseria - a prestigious 18th Century property which has been restored to a luxurious standard. This beautiful property has 5 en-suite bedrooms, a guest suite Lamia, a sumptuous garden and a wonderful pool.
The Pinelli Estate
Campania
The Pinelli Estate extends to over 35 acres on rolling hillsides at just over 300 metres elevation facing the Cilento National Park and the Tyrrhenian Sea, with Capri and the Amalfi Coastline on the horizon. Our three properties are nestled amongst the olive groves and lemon trees, each in total privacy from the other.
Choosing Your Property
Think about your budget – decide at the outset about how much you can afford and how you will fund your purchase. If you require a mortgage or finance to purchase what options are there?
Do you want to buy one share in your fractional ownership property or multiple shares, perhaps with a view to rent unused weeks.
Where do you want to live in Italy? Which regions attract you? For example Tuscany, Campania or Puglia? Italy has a great variety of landscapes: lakes, coastline, mountains and plain so there is a wide choice. Please see our Discover Italy pages for information on Italian regions.
Realpoint work exclusively with the Pinelli Estate to provide you with a selection of fractional ownership properties in italy.
We are continually seeking out new properties and locations. If you have friends who wish to invest with you, tell us your requirements and we will make sure you are updated when we secure a new property under the Pinelli fractional purchase programme.
Are you thinking or renting out the property? Sea view villas and farmhouses with pools all offer attractive rental income and your property can pay for itself over time.
Another aspect to be considered is accessibility and facilities. Is the area that you have chosen well served by airports, for example.
Plan your timings. When can you view properties? We'll arrange your viewing trip and assist you on your way to your shared ownership.
Frequently asked questions
What is Fractional Ownership ?
Designed specifically for people who wish to own a holiday home, but don’t want to have the worry, burden and complexity of personally managing their property but just want to arrive and have all the time to enjoy their second home.
Collective ownership, or Fractional Ownership, provides a share in a limited UK company that owns a property asset valued at over €1.5M.
Isnt this just a time share under another name ?
This is important as the fractional (or collective) ownership purchasing model should not be confused with timeshare arrangement. Once the share purchase is made, the owner can sell or pass on the share to family members.
What extra costs are involved ?
It is advisable that you seek and appoint your own independent legal counsel.
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The costs of your legal counsel -
UK Government stamp duty currently 0.5% of the share purchase price
How long has the fractional ownership model been around ?
People have long shared the costs of holiday homes among family, friends, and partners. Various collective ownership properties have existed in major resort destinations of Europe since the 1970s.
What type of people does fractional ownership suit ?
It is suitable for:
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Frequent visitors who are interested in buying overseas but want to experience the resort or location before committing to whole ownership -
People who would like to invest in property in several different countries or resort locations to reduce their financial commitment in a single destination -
People who could afford whole ownership of a holiday home but would not use it sufficiently to justify a whole purchase -
Buyers who could afford a cheaper second home but really want to spend time at a larger, higher specification holiday property
Can I buy a share with someone else ?
Yes, you can purchase a share with a friend, family member or business associate.
Who pays the bills ?
The appointed property management company will process and pay all related bills, collect condominium fees and provide all accounting services necessary to manage the property.
Contact us about Fractional ownership
In order to avoid any disappointment, we have provided you with a means to register your interest with us - so that you can make sure that when the property comes on the market as a Fractional Ownership property then you will have first refusal. It costs nothing to register your interest, so take a look at the properties and just let us know using the "Register Interest" button on the property details pages.