Find out what’s happening in the property investment arena both in the UK and internationally
Share And Share Alike In Madeira
May 25, 2009Article by Ray Withers
Meet timeshares rebranded for the 21st century – the concept of fractional ownership.The principle is straightforward – a group of buyers get together and purchase a property that they then share according to their percentage of ownership.The idea is few people continually use a holiday home overseas, so it makes sense to upgrade what you can buy when sharing the costs with family, friends or other investors.
Syndicates get together and buy racehorses, property, boats and businesses like this – but in property the muddied name timeshares picked up from crooked and dodgy dealings led to the rebranding to fractional ownership.Now, fractional ownership gives investors returns based on their share of the property and matches their use of the home more to the time they have available – and if the property is rented, they get a pro rata share of any profits as well.
Madeira’s Palheiro village was voted one of the best ‘fractional ownership’ developments in an industry award poll. Apartments and villas with spectacular views are priced from €325,000 to over €1 million.
Madeira real estate prices have fallen 20% in the past year, say estate agents, and tourism has been hit by a sliding pound and the credit crunch.
Most holiday homes are relatively inexpensive due to the fall in prices. They are grouped on the volcanic hills near Funchal, where half of Madeira’s 240,000 population live.
Property in Funchal, like a three-bedroom villa, built forties, costs about €250,000, or up to €400,000 in the heart of the town.
Further out but only 45 minutes away by motorway – prices are much lower but views are equally fabulous.
If you are looking for a pied-a-terre, Funchal apartments are less than €100,000.
Madeira is particularly attractive to British ex-pats, who number among the largest ex-pat communities on the islands. This is mainly due to huge contingents crossing over to the island from Gibraltar during the Second World War.
Many stayed on after the war, and , because of the community, more ex-pats made Madeira a holiday destination to see their relatives.That’s why Madeira property investment is big business for the Brits