Sharing Fractions and Questions

Fractional Le Palace des Vosges, ParisThe Jewel of the Seine, ParisLe Notre Dame, ParisLe Muguet, ProvenceFractional Le Muget, ProvenceGetting the keys!

Have you ever thought about sharing the usage and responsibility of one property with others who have the same goals in mind as you?

That’s what Fractional Ownership is. And in today’s economic environment, it’s HOT!

Wikipedia says:

“Fractional ownership simply means the division of any asset into portions or shares. If the ‘asset’ is a property, the title or deed can be legally divided into shares. In certain instances this is done by creating a ‘mezzanine structure,’ i.e. creating a company which owns the property then allowing multiple owners or investors to own shares in the company. Those shares can then be purchased and owned by more than one individual. The reasons for a ‘mezzanine structure’ can vary. Two common reasons are to allow transfer of shares without the need to reflect changes on the title or deed to the property, and for tax benefits.

“Shared ownership of the property and its deed will also entitle shareholders to certain usage rights, usually in the form of weeks. Conceptually, fractional ownership is not the same as timeshare. Fractional ownership affords much of the freedom and usage benefits offered in timeshare, however, the fundamental difference with fractional ownership is that the purchaser owns part of the title (as opposed to units of ‘time’). Therefore, if the property appreciates in value, then so do the shares. As with whole ownership, fractional owners can sell whenever they deem necessary or prudent, releasing the capital growth from their ‘bricks & mortar’ investment.”

Fractional Ownership in Paris is so hot, that just this morning, two couples secured two shares of “Le Palace des Vosges,” the luxury property that our group located (in the 400+ year-old Place des Vosges), purchased with investors, renovated (by Martine di Mattéo), developed as a fractional property and is representing for sale. This constitutes the 9th share sold (of 13) and once the 10th share is sold, the price will increase for the subsequent three shares, just like works of art do when the number of a print is ‘editioned.’

We represent a variety of Fractional Ownership Properties in Paris and elsewhere in France. Some of them were developed ‘from scratch’ just as was Le Palace des Vosges. Others were existing properties whose owners ‘fractionalized’ them for the purposes of selling them to recuperate some of their investment, but wanting to hold on to one or more shares for their own personal usage — which makes a lot of sense!

Two such individuals have approached us recently with this idea. One is the owner of villa on the Riviera, another of an historic château in the Loire Valley. Before either proceed to legally change the structure of the deed to conform with Fractional Ownership, we’d like to learn more about the market and we hope that you will not mind assisting us in our quest for information.

It’s easy. We simply ask that you answer 10 questions. If you do not wish to participate, then skip over it. If you do, then you may find the following questionnaire online at QUESTIONNAIRE making it easy to complete and submit.

If you prefer, you may print this out, complete it by hand and fax it to: +1 (415) 520-1329.

And if you want to learn more about our properties, visit French Property Fractionals.

Fractional Ownership Questionnaire

Fill out our questionnaire online at QUESTIONNAIRE or print out the form below, complete it and fax it to +1 (415) 520-1329.

1. Are you familiar with Fractional Ownership? _Yes _No

3. Please tell us if are you might be interested in Fractional Ownership? _Yes _No

4. If yes, please describe what you view as the pros and cons of Fractional ownership:

5. Without considering costs, would you be willing to participate in Fractional Ownership in France — that is to own one portion of one property used primarily for vacation purposes, shared with others, so that your usage of the property is shared, too? _Yes _No

6. If yes, what kind of vacation property suits you most?
_Apartment in Paris, Nice or other major city
_Village house, in close proximity to other village residents
_Country house or manor house with lots of land around it
_Château
_Other

7. How many people would you want to accommodate?
_4 or fewer _5 to 7 _8 or more

8. What form of usage suits you most?
_Fixed (same weeks each year)
_Rotating (the weeks change each year so you can experience different seasons)
_Combination (some weeks fixed, some rotating)

9. Up to how much would you be willing to invest in a Fractional Ownership property?
    _$50,000 to $100,000
    _$101,000 to $250,000
    _$250,000+

10. For how many years would you consider keeping your investment in a Fractional Property?
_4 or fewer _5 to 7 _8 or more

Please tell us a bit about yourself:

Name (optional):___________________________________

Age: _25 or under _26-40 _41-55 _56 or older

Gender: _Female _Male

Familial status: _Single _Couple _Family
    
State/Country of Residence:______________________________________________________________

Profession:___________________________________________________________________________

If you would like to be contacted about current and future Fractional Ownership opportunities in Paris and France, please provide an e-mail address:___________________________________________________

 

Thank you for your feedback! We’ll report the results in a future FPI.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: [email protected]

 

 

 

 P.S. Want to go see what’s up in New York City post Sandy? Here’s an exceptional rental in New York City — a Cool & Comfy Studio in New York’s West Village with a perfect view of the Empire State Building — available for vacation rental December 5-10 for as little as $185/night and December 20-27 for just $195/night. Located in the heart of the coolest ‘hood’ in the city, it’s contemporary, super cozy, clean and comfortable. See the apartment at West Village Studio.

P.P.S. French Property Insider is a 50-issue per year e-zine. There will be no issue on Thanksgiving Day, November 22nd and none before Christmas on December 20th. Enjoy the holidays and thank you for your understanding!