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260,000 USD - 3 Bedroom Duplex For Sale In South Marina El Gouna ( Negotiablle)




 Fractional Ownership In Egypt

 Fractional Ownership FAQ’S In the current economic client it will be a major challenge to the Overseas Property Industry to find new routes to market in the ever more difficult financial environment which exists worldwide. In conjunction with Fraction’s Abroad, are pleased to offer a Fractional Ownership Model which will go a long way to improving sales levels for Developers and enhancing earnings opportunities for agents. This is NOT Timeshare; to understand better how Fractional can help you plese take a few moments to read through the following FAQ’s which should answer many of your questions about this great new marketing tool. 

FAQ's

 

Q

What is Fractional Ownership?

A

Fractional Ownership is a legal framework that allows you to divide the ownership of a property into shares and sell these ownership shares at a greatly reduced price compared to the full ownership cost.

Q

Can any property be sold on a Fractional basis?

A

The answer in the majority of cases is yes. Part of our legal due diligence is to check that there are no legal issues with either the country or the land that the development is located on that would restrict a Fractional Model being introduced.

 

Q

Does the price of the property increase when sold on a fractional basis?

A

The price of a property has to increase when sold on a fractional basis to cover the extra work involved in selling to more than one purchaser. Our model dictates a 20% increase in the value.

Q

Why charge 20% increase in real estate value?

A

There is more work involved for the selling agents and the developer when selling a property fractionally. Fractional Ownership will increase sales numbers as you can go to the market at 75% less than a traditional sale but the introduction of the fractional model has to benefit all the parties involved in the process. The selling agents will welcome the increase in sales numbers but an additional income of 10% per property will be a great motivation to concentrate on selling fractional properties. The developer still enjoys a 5% increase in profits which with the extra sales numbers will be very welcomed.

Q

What happens to the 20% increase in property value?

A

We suggest that no less than 10% goes to the selling agents, 5% to the developer and 5% to ourselves as the Fractional Model Provider. If all the parties enjoy the benefits of a fractional sales strategy the strategy will be a success.

 

Q

Why do the fractional homes have to be furnished?

A

As there is more than one owner to a house the house has to be sold with everything that an owner would require. We will provide you with an itinerary of furnishings and accessories.

Q

Who provides the furniture?

A

It is always a good idea to use the services of a professional furniture company and work with them to choose the furniture most suited to the price point of the house.

Q

Who pays for the furniture?

A

The furniture costs are added to the cost of the property after the 20% fractional increase in value has been accounted for. This is then divided by the four fractional owners which represents great value for money for your purchasers as they don't have the headache of furnishing the house and they only have to pay 25% of its cost.

Q

Why does the property have to be managed?

A

As there are four owners to the property a structure has to be in place to manage all the aspects of the house for them. The owners will expect the property to be looked after and cleaned prior to their use. This is huge benefit to your purchasers as their property comes to them fully managed at 25% of the cost.

   

Q

Why only 4 shares per property wouldn’t 20 be cheaper?

A

You have to strike a fine balance between the shares given, the increase in real estate value to pay for the work involved in selling to multiple purchasers and the risk of straying into both timeshare legislation and the perception to your purchasers that this is timeshare. If you had 20 shares the price per share would drop. However someone has to be paid to sell each share so the real estate value would have to increase by 100%. Your purchasers would very quickly work out that this was not good value for money as they are in fact paying double the true value of the property. Your clients would also only get 2.5 weeks use per year. 4 shares represents the best balance for real estate value, use for your purchasers, work for the selling agents and speed of sale per property.

Q

Why form a company to hold title of the property?

A

This is the most efficient vehicle for a fractional purchase. Your clients own the shares in the company which will have the rights and responsibilities drafted into the company formation details. When your purchasers decide to sell their fractional interest its less complicated, vastly quicker and much cheaper for them to have this type of company structure. It should not be an alien concept for your purchasers as when they have been researching properties on the internet they will have discovered that in some countries even on a traditional full ownership sale, the title of the property would have to be held by a company structure and they would be 100% shareholders.

Q

Is Fractional Ownership an new idea?

A

No. Fractional Ownership for property is very established in the USA and Canada. The USA fractional property market in 2007 was valued at close to $2billion. It is a relatively new concept for the UK and European property market but even here its an accepted and established ownership vehicle for yachts, planes, helicopters etc which are of comparable value. There is much being talked and written about Fractional Ownership and the huge benefits it affords purchasers and we feel that is a powerful tool in combating the current economic problems but see fractional as being an established and mainstream ownership product as it is in other markets.

 

Q

Are your legal teams experienced in Fractional Ownership?

A

Very. We have employed the services of a team that have its routes in the established American market and have drawn up thousands of fractional contracts. We now are very pleased to be working together from their European offices.

Q

How do I chose which Usage Calendar to use?

A

The Usage Calendar is key to the success of the fractional sale. You need to analyse how a person will use the property. Is it weekly holiday, 2 weekly holidays, a combination of these or are you targeting the retired couple that will use the property for the whole winter season. Our Usage Calendars accommodate all these scenarios. We will work with you to make sure that the Usage calendar is appropriate.

Q

Can you do training at our offices?

A

We hope the information on the website and the support we give via email and telephone will prove more than enough for you to introduce a successful fractional sales strategy. If however you would like us to meet or educate your sales staff in person we are more then happy to oblige. We do not charge for our time but would ask that you cover our travel and accommodation expenses.

   

Q

Why do you provide a Property Portal?

A

You will already have your own sales teams, selling agents and routes to market. Between us these routes to market will be educated in the huge benefits to both yourselves and your purchasers when using our Fractional Model. We have tied the success of our company to the success of your fractional sales strategy. We think it hugely important to have a Dedicated Fractional Property Portal that you can upload your properties to for FREE giving you another important route to market. The beauty of our model for the purchaser is no matter what the development or where it is it will be the same Fractional Model at its heart. Our portal will be an easy to use, easy to understand website for purchasers who will be able to take comfort that the Fractional Model is sound and use the website to chose properties as they would for a traditional full sale. We hope to be the number one Dedicated Fractional Property Portal that will generate important new leads for you. The more leads you have the more sales you can make and the more incomes we all enjoy as a result.

Q

How many properties can I upload on the Property Portal?

A

You can upload as many properties onto the Portal that you have registered with us. There is no limit. If you had 100 properties registered with us for Fractional Ownership you can have all of these on the website until all the fractions are sold.

Q

What happens to the leads from the website?

A

All the sales leads from the website are directed to the developer or his selling agent. This information is given on the Portal Upload pages.

  Whether you are an Agent or a Developer or a Client looking for an innovative way to purchase that dream property at a Fraction of the cost of conventional ownership, then contact George Sabry  at Red Sea Real Estate today for further details. Email: george@flare-online.com or by Telephone on (002) 016 900 2626. Skype: gathanasious1 







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