Selling Your Share + Life without Traffic

IS A FRACTIONAL OWNERSHIP PROPERTY SHARE RESALABLE?

One of the main questions we get from potential buyers of Fractional Ownership property shares is how resalable their share would be in the future.

First off, most buyers tend to keep their shares for at least five to ten years—normally until something changes in their personal lives to warrant the sale. Some decide they prefer to travel to other places rather than be tied to one destination, although we find this to be rare. In most cases, they sell their share in order to purchase a property in which they can either live full-time or have more usage than the limitations of the one (or sometimes two) share(s) they own. This is because once they’ve come to know the city or town (or countryside) very well, they want to spend even more time there than their share allows!

For the property to be sold in its entirety, the owners must unanimously vote to make that decision—at least that’s how the bylaws of the properties we have developed are written. I have never seen a Fractional Ownership Property sold this way. That doesn’t mean it can’t happen, but it’s highly unlikely, especially when there are as many as 13 owners needed to make that decision.

The resale ability of the share is first and foremost dependent on the quality of the property, like any property. If it is a desirable property to begin with, then it can easily and quickly be resold, as long as there is a viable outlet for such a sale and a vibrant market. We’ve developed and marketed so many properties of this kind since 2009 that I’d venture to say we’ve sold more shares than any other marketer in France. That’s simply because we are in the business of Fractional Ownership and therefore the market looks to us for the availability of property.

The bylaws of the property dictate how the sale is to be handled. In most cases, the owner must offer it to the other owners before it can be sold on the open market. Each property’s bylaws may differ and it would be important to the buyer of the share to review that carefully before making the purchase. It’s a logical course of action, and in many cases, the other owners will jump at the chance of having another share or have friends who will want to make the purchase. This is the quickest, easiest way to sell your share.

It is important to determine the price of the share before offering it to the other owners. The price at which you offer it to the other owners may differ from the price you would sell the share at on the open market because there may be a commission paid to the marketer that isn’t an expense when the share is sold directly from the seller to another owner. This is true in our case, as we do charge the seller a marketing fee in order to create a website page and send out sales messages in order to sell it…a sale which normally happens quite quickly—especially with properties we have developed.

The properties we have developed have waiting lists of buyers which makes a resale a virtual certainty. Properties developed by others may or may not have the same desirability. This is not meant as a “boast,” but it’s simply the truth because for one reason or another, the other developers may not have created as flexible a usage calendar as ours, or the location isn’t as universally interesting, or the property itself wasn’t renovated/decorated by such a professional designer as ours (Martine di Mattéo). All these factors play an important role in the salability of the share.

When pricing a resale share, we encourage our owners to consult with us before setting the price. We have never sold a share at a loss to the owner…never. We consider all the costs involved in the sale, the current market value of the property, as well as the market value of the share, which differs from the fraction of the value of the property itself. In other words, if a property has 13 owners, as is the case of our properties, the share is not worth one-thirteenth of the current market value of the property, but much more, as there is a different set of criteria for Fractional Ownership property shares. We also consider the marketing fees that the seller will be charged, much like any agency fee included in the price of a property.

One other important thing we consider when pricing a share is what the buyer paid in equivalent US dollars to the euro value at the time of their purchase, which was based on the rate of exchange and how that will differ at the time of the sale. Our goal is to recuperate their investment at the US dollar value.

We have a situation at this moment that sparked this newsletter. Recent purchasers of a share in one of our best properties decided early on to sell their share because they quickly realized they wanted a more permanent home. It seems that there is already interest in the share by another owner, but should there not be, we have a long waiting list that will be thrilled to hear of its availability and we are confident it will sell in a heartbeat.

The owners purchased the property at a time when the rate of exchange was at a big advantage to the buyer—the euro to the dollar was almost at parity. When their share is sold now, the euro value will convert to a much higher dollar value and they will gain simply based on the rate of exchange alone, as well as the appreciation in euro value! “Quelle chance!” (What luck!)

Keep in mind that as a buyer of a share, you may be asked to reimburse the seller for any security deposits and/or reserve funds on hold with their account, and any dues based on a pro-rata calculation. There is also a fee for an attorney to transfer the title properly. In our case, the attorney charges about $1,000 for this work.

The point is…when you purchase a good property from a qualified developer, then the resale of the share is a virtual certainty. Purchasing the share is an investment, not a cost! Imagine, you can have the usage for years and then make a profit when all is said and done. Your only real expenses are the dues you pay to support the property, which is shared by all the owners and therefore usually quite minimal. If you compare that to what it would have cost to rent a property of equal quality for the same time period, you’ll find that Fractional Ownership is a win-win for everyone involved!

You can learn more about Fractional Ownership on our site and be sure to see what properties are available at the moment.

Take special notice of three particular property shares on the market right now:

• Chez La Tour

• Chez Mirabel

• Le Jardin de la Promenade

SPECIAL NOTE: We will soon be launching a new property in the most luxurious spot on the Riviera, Saint-Jean-Cap-Ferrat—a two-bedroom apartment with a balcony, a sea view, and just steps from the port. We call it “La Villa Plaisance!” To be on our special mailing list and informed of its launch before we announce it to the open market, email us today!

LIVING ON THE ZONE PIÉTONNE IN NICE

Some people think I am nuts living directly on the “Zone Piétonne” (pedestrian zone) in Nice, immediately assuming it’s noisy. Well, there is “noise” and then there is “noise.” Traffic noise is the kind of noise I cannot tolerate easily, but the sound of people’s voices, or a musician’s playing is not only perfectly acceptable, but downright pleasant. In addition, with double-paned windows, the sound of just about anything is blocked out. Even in the mornings when the street is open to deliveries (only until 11 a.m.) I hear nothing. The bottom line is that I quite love it, and have a world of entertainment I can view from my balcony.

This past year, our building was resurfaced and with it came a new larger, longer, wider balcony. Now that the weather is comfortable, I’ve been using the balcony quite a bit this past week, working on my laptop, even doing consultations on Zoom while sitting at the table in the open air.

In a recent article in Nice-Presse we got word that a complete renovation of the pedestrian zone is about to take place. I am thrilled, even though it means tolerating the construction.

Rue Masséna is a bustling thoroughfare and is a vital artery at the heart of the city of Nice. It boasts a plethora of shops and restaurants, but its outdated appearance and lack of modern amenities have left both business owners and residents yearning for revitalization.

Throughout the day, rue Masséna teems with a continuous stream of pedestrians and tourists. During the summer months, it can be as busy as Bourbon Street during Mardi Gras, but that doesn’t bother me in the least. Being in the pedestrian zone means having access to a diverse array of establishments—shops, fashion boutiques, well-known chain stores, charming sidewalk cafés, lively bars, and some of the city’s best restaurants.

However, despite its importance, you might agree that the street seems frozen in the 1980s and has noticeably “aged a lot.” According to the author of the article, it no longer appears entirely suited to the current needs and expectations of visitors and locals alike. I can’t say I thought much about it until now, but do see their point!

Following the recent renovation of rue de la Liberté last November, the street parallel to rue Masséna, Nice Mayor Christian Estrosi announced a consultation process aimed at presenting two or three redevelopment projects by the end of June 2023. The precise date for the announcement of these projects is yet to be disclosed by the municipality.

Last November, Nice-Presse invited their readers to share their ideas and suggestions, and the results were subsequently published in their columns:

• “It’s frequently dirty, and there’s a lack of garbage cans,” laments Samira from Rivae perfumery. “The overall appearance is unattractive.”

• “It’s not clean enough. The street is inadequately maintained. Every morning, there are food stains and overflowing garbage cans… It has been like this for years.”

• “If only we had some flowers, it would improve the ambiance.”

• “Palm trees were planted, but they seem to serve more as ashtrays than anything else!”

• “Whenever a store closes, it’s replaced by fast food or snack options… It’s a pity.”

• “For elderly people like me, it would be wonderful [if there were benches]. Sometimes we need a place to rest, but it’s complicated here.”

• “The paving stones should be level because many seniors have tripped and fallen. The ground is truly hazardous.”

• “The lighting is inadequate during the winter months, making it excessively dark.”

I cannot agree more, although I have never found it as undesirable as these complainers. Still, each time I roll my suitcases down rue Masséna, I am reminded that the paving could be more pleasant and easier. What has bothered me even more than these complaints are the new electronic posters that (for me) remove the old-world charm of the street, even though they do serve a good purpose.

The article in Nice-Presse shares with us three photos of the street and my new balcony is visible in all three of them! I feel so privileged!

Read the entire article (in French).

SPECIAL NOTE: Our Fractional Ownership Property “Le Palais du Soleil” is located on the Zone Piétonne! It is currently sold out, but should a share become available, we’ll be sure to let you know!

A bientôt,