Fractional ownership vs. Timeshare: What is the difference and what does Flatels offer?
Looking for a smart way to get a second home in an attractive destination without having to buy the whole property? Considering timesharing but not sure if it’s right for you? Then there is another interesting alternative – fractional ownership. And this is exactly the concept that the Czech company Flatels brings you.
What is timesharing and what problems has it had?
Timesharing was popular especially in the 1980s. a 90. years. The principle is that you do not buy the property, but only the right to use it each year for a certain period. However, timeshare problems have often been:
Unclear and misleading long term contracts (even 99 years)
High maintenance and management fees, which also increased over time
Complex system of exchange of stays between ministries
Inability to influence the furnishing and style of the interior
Zero appreciation of the “investment”, problem with selling the timeshare
What is fractional ownership and how does it differ from timeshare?
Fractional ownership has come up with a fairer and more transparent model. It means that you buy a direct share (usually 1/8 to 1/2) of a specific property and become a co-owner. You are guaranteed the use of the property for a few weeks a year and share in the appreciation of its market value. Unlike a timeshare, you actually own part of the property, not just the right to use it.
In addition, in the Flatels model, the property is owned by a special purpose LLC and the co-owners hold their interest through the LLC. This makes the contractual terms, the agreement on the use of the property and the eventual sale of the share very easy to resolve and transparent.
Benefits of fractional ownership with Flatels:
A good investment – you get a luxury property in a premium location for a fraction of the price of the whole building. The share gains value over time.
Understandable terms and conditions – no hidden fees, simple and transparent contracts due to ownership through s.r.o., possibility to sell the share at any time.
Worry-free use – the management company takes care of maintenance, cleaning and operation, you just come and enjoy.
Flexibility and variety – reciprocal stays allow you to visit other destinations in the Flatels network. You choose the dates yourself.
Rental income – if you don’t use your time, the unit can be rented out and generate passive income.
Co-ownership community – you can meet interesting people, make new friends, broaden your horizons.
Fractional ownership with Flatels makes sense for all those who want to enjoy a beautiful holiday regularly, for reasonable money and without worries. It’s a thoughtful investment in lifestyle and property. Timesharing does not offer you such comfort, control and evaluation.
Browse our range of shares in proven destinations and take the first step towards your dream second home with confidence and without worry.