Are you looking for the luxury investments with high returns in Kenya? As a matter of fact when it comes to investing, we all look for opportunities with the most profitable returns or at best with high demand. Have you ever heard about fractional leisure ownership investment?
Fractional property ownership is a way in which several unrelated parties can share in, and mitigate the risk of, ownership of a high-value tangible asset, usually a jet, yacht or piece of family holiday resort real estate. It can be done for strictly financial reasons, but typically there is some amount of personal access involved. One of the key benefits for a fractional purchase is the ability to share the costs of maintaining an asset that will not be used full-time by one owner. Definitely fractional vacation property ownership should be an ideal investment option if you happen to be looking for the investments with high returns in Kenya.
Every fractional endeavor requires some sort of management, to administer the rules and regulations (which are agreed upon before the fraction is purchased) and maintain the asset to the degree laid out in the ownership documents. Generally, management will oversee the daily operation of more than one property, although it is not necessary. A single fractional asset may be managed by a single entity. Each fractional owner investor is guaranteed a prescribed amount of access to the asset, which typically can be used or offered to the public as rental or charter, the income is usually split between the management company and the fractional owner, unless the owner finds the renter himself. Additionally, each owner pays a portion of the annual management fees and maintenance, relative to the percent of ownership.
While Richard Santuilli is generally credited with launching the concept for business jets, individuals have been setting up LLCs to buy boats or planes or “a little cabin in the woods” for decades. Michael Aumock was instrumental in setting up fractional devices in the yachting and superyacht industry.
In business, fractional leisure ownership investment is a percentage share of an expensive asset. Shares are sold to individual owners. Typically, a company manages the asset on behalf of the owners, who pay monthly/annual fees for the management plus variable (e.g., per-hour, per-day) utility fees.
The popularity of the term fractional ownership has caused extensive re-branding in other industries where similar concepts, such as real estate timeshares, were already well established. The main distinction between timeshare and fractional ownership is that with a timeshare you buy the right to use a property, but with fractional ownership, you are investing in luxury real estate,the latest investments with high returns in Kenya option. You get a deeded piece of real estate, just not for the entire parcel.
Fractional ownership investment divides a property into more affordable segments for individuals and also matches an individual’s ownership time to their actual usage time. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property. Occasionally, the vacation property is sold after a predetermined time, distributing the relative proceeds back to the owners hence the reason why fractional leisure ownership has been considered as the best investment with high returns in Kenya. A few private owner-groups have developed highly sophisticated usage allocation schemes and other features based on the principle of attempting to get as close as possible to the flexibility of individual ownership, and only compromising this to the minimum extent necessary to accommodate multiple owners. In such schemes, the basic agreement is between the members themselves, whereas in most commercial fractional ownership schemes, the owner’s principal relationship is with the property developer and/or promoter of the scheme.
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