Fractional Leisure Property investment can be defined as the investment plan whereby a group of like-minded investors contribute capital to own Vacation Properties in Kenya together and agree on how to share the luxurious property in future.
Fractional Leisure Property sharing is usually on the basis of the duration of occupancy and rental income raised when the fractional property owners are not using the luxurious Vacation Properties in Kenya. Most fractional property ownerships across the country share the time spent on the property on a pre-agreed contract whereby one may opt to collect rent in lieu of the time they would have spent on the luxury property.
In an ideal scenario, let us assume a hotel with several rooms, actually a room can be shared by 14 people, with each individual having full rights to use the room for one month in a year. The month per year is actually the fraction owned by each owner. The Vacation Properties in Kenya owners can then either choose to spend the month in the room, say on family holiday vacation, or let the hotel suite for the period and collect the rental revenue generated instead.
In most instances, the one month fractional property ownership can be subdivided further into weeks or days spread over the whole year to ensure balanced fractional ownership among the other fractional property owners. Usually, fractional properties are managed by an independent company which is normally paid a fee. It will then ensure each fractional owner gets what is rightfully due by computing the time they availed their fraction for letting.
Fractional property ownership in Kenya has its own pros and cons. On a positive note first, it can help people to invest affordably in real estate without the initial huge capital cost associated with property development or buying whole units.
Secondly, it can also help people to own luxurious real estate properties in several holiday destinations such as Nairobi, Mombasa, Kisumu and Nakuru, at a very low initial capital cost. Real estate investors can then reduce their cost of accommodation whenever they travel to locations where they have fractional leisure properties.
Fractional property ownership also greatly minimize the complications associated with investing in luxury real estate such as hiring new contractors, property consultants, securing local government authority approval licenses, and many more.
Bases on that fact actually one acquires a ready property located strategically, such a luxury investment has a huge potential of high returns on investment compared to other forms of real estate investment such as apartments for rent. Developers of fractional leisure properties usually carry out feasibility studies on the viability of such luxury investments, which are normally located in holiday destinations across the country.
Fractional assets possession additionally removes the complications involved with investing in actual property including hiring contractors, experts, securing neighborhood authority approval licenses, and so forth.
considering that one buys a prepared property located strategically, such investment has a large potential of excessive returns on funding as compared to other forms of actual estate including apartments for hire. builders of fractional properties generally carry out feasibility studies at the viability of such investments, which can be usually positioned in vacation destinations.
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