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Trade Winds of Change: Fractional Ownership Comes to UK Property Market via Grenada

July 5, 2010Article by Ray Withers

Fractional ownership has arrived on the UK property market at last! For overseas investment, it opens new doors and ushers in radical – even revolutionary – change.

For the past few weeks, we at Property Frontiers have been dropping subtle (and not so subtle) hints about a new, win-win situation for our investors … an interesting product for interesting times.  Now we can talk about it!

Property in the Caribbean conjures up images that are at once exhilarating and relaxing: white sand beaches, tropical gardens and rainforest, mountains rising above the palm trees. Etc. Caribbean Residences at Bacolet Bay in Grenada offer all these things and more – including exclusive restaurants, a state of the art gym and health spa.  Moreover Grenada, one of the most beautiful Caribbean islands, is also one of the most unspoiled by mass tourism. And so Caribbean Residences offers the investor – or the visitor – an atmosphere of peace, seclusion and exclusivity.  Located on the southern shore of the island, Bacolet Bay is an area outstanding natural beauty, cooled by gentle trade winds.  It is a five star complex with easy access to rain forest, mountains and sea, the region’s three natural wonders.

But there is something else very special about Bacolet Bay. That is the new form of ownership we are offering to investors – Fractional Ownership.  It works like this: each investor buys a share or fraction of an apartment or villa at Caribbean Residences.  This means that they have the full rights of ownership, including the right to earn rental income from the property. They can enjoy the property, or use it as an income source, for a period of the year that is proportional to their share of ownership.  All our properties are divided into equal fractions, there is a 999 year lease and there are no hidden administration costs.  For UK investors, this is a genuine first.

Fractional Ownership means exactly what it says.  It is no different in legal terms from co-owning a property with family members, partners or friends. At Bacolet Bay, it provides a unique opportunity to buy exclusive property at an inclusive price.  Shares in apartments start at only £26,700 (US$40,000).  Our units are uniquely priced well below the current RICS valuation.  Better still, there is a guaranteed net return of 10% for the first five years and – crucially for investors – a good exit strategy.  Apartments and villas are sold into the investment and lifestyle market after ten years, with forecast returns of £75,000 ($114,000) for an apartment, more for a villa.

This development has much wider significance for the industry.  It is no exaggeration to say that Fractional Ownership has a democratising effect on the property market.  Luxury residences become affordable to swathes of investors who only a few years ago would not even have considered them.  Higher income investors can spread and extend their portfolios.  For those who want them, good rental returns are guaranteed, while others can enjoy an exclusive Caribbean Residence for several good weeks of the year – something that would once have been beyond their wildest dreams.

In other words, Fractional Ownership is an idea whose time has come.  It is a creative and equitable way of throwing the international property market open. 

We are proud to have reached this new frontier.

Written by: Aidan Rankin


Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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