Fractional Ownership
Investment Overview
Fractional ownership investment overview:
The financial advantages of owning real property or a pied-à-terre in Paris are myriad.
The return on investment in Paris real estate is historically strong, rising an average of 10% a year over the last thirty years. Prices continue to rise steadily and healthily. The Paris market remains a relatively good bargain when compared with other capital cities of Europe: Paris is 7th in average property price in European capitals.
But gone are the days of double-digit appreciation across the board for any property anywhere in Paris. Rather, the key ingredient for long-term gains in the current market is to buy smart: a great Paris apartment in the best locations and with a special something - a view, a private terrace, historical details, or other unique features - never goes out of style.
Charming properties in the right areas will enjoy above-average growth, as demand for great properties in these coveted areas continues to outpace supply. This is the rule for sole ownership properties and even more so for fractional properties: in the niche market of shared ownership, resale will depend a lot on making sure that your share is in a desirable, well-maintained property in the best part of the city.
How fractional ownership compares with other ways of buying a vacation property:
Ownership Model |
# Owners |
Considerations |
Sole Ownership |
1 |
100% of costs of acquisition, |
Fractional Ownership |
4-12 |
Pay only proportional share of acquisition, ownership, and maintenance |
Time Share |
26-52 |
High mark up = no potential for appreciation, same week every year |
Destination Club |
Varies |
Membership-based = no ownership, no investment component |
What makes fractional ownership in Paris different - and better?
Fractional ownership in Paris can be your door to owning a luxury apartment in Paris with long-term capital gains potential for a fraction of the price of sole ownership. You enjoy the capital growth of property, the enjoyment along the way, and a beautiful, luxurious property in the heart of Paris. With the private co-ownership properties, you also enjoy solid, reliable rental income to meaningfully subsidize your mortgage and ongoing expenses.Strong appreciation potential with well-chosen real estate. To assure the solidity of your investment, the right properties are carefully chosen in the most prestigious and desirable areas of the city, where rents and values are sound and growing. The private co-ownership Paris properties are in the heart of Saint Germain des Près in the luxurious 6th arrondissement, while the traditional fractional ownership offering moves over to the right bank, in the heart of the Marais district in Paris' 4th arrondissement. All of the fractional ownership properties respect the maxim of real estate investment: location, location location.
Hassle-free ownership and peace of mind. The legal, financial and day-to-day management and upkeep is entirely handled on behalf of the owners, so that they can enjoy their investment without the hassle that ordinarily comes with owning a second home. The management is all orchestrated behind the scenes with no headache for the individual owners.
Flexible weeks of personal use of the property year after year. Ten weeks a year in Saint Germain des Pres, four weeks a year in the Marais... Whether private co-ownership or traditional fractional is right for you, you enjoy flexible options for spending time in your luxury property in Paris. You can offer time to friends and family, or enjoy your full time for yourself. These properties are also part of the Trade to Travel network, through which you can exchange weeks in your Paris property with weeks in over a thousand vacation properties worldwide.
Personal concierge and luxury services at your disposal. The fractional ownership properties a good investment, and a home for memorable and meaningful vacations. Once you arrive in Paris, you can have the time to yourself or engage five-star services to meet any of your personal needs. You can even keep your personal items in the apartment when not in residence, so that when you arrive you are really coming home.
Private co-ownership takes fractional ownership to a whole new level of flexibility, privacy, and smart investment.
Beyond the quality and desirability of all of these fractional ownership properties, some advantages are unique to the private co-ownership homes:
The small group of 5 co-owners maximizes personal use and investment flexibility. With a small group of owners, adjustments are more easily made to use time in the property and decisions about the property. For example, the owners may agree to extend or reduce the normal 10-year hold on the property, deciding to sell early or stay in longer given market conditions or other factors. Such flexibility is difficult with larger groups.
Your residency periods are totally flexible. Year by year, you can choose different use times, and different use amounts, from no weeks of personal use, up to ten weeks per year. For the weeks not used, the apartment is rented out through established partners in the short-term luxury rental market. Ten weeks is usually more than most of us will use at a vacation home. This model creates income by renting out your unused weeks. The rental revenue helps cover operating costs, mortgage payments, and enhances the value of your real estate investment.
The rental management team has developed the systems and expertise to maximize rental income for unused time so you don't have to. These properties are carefully selected for quality, location and price, to ensure that they generate meaningful income from short-term luxury rentals, sufficient to meaningfully reduce ongoing mortgage and management expenses. And, since it is the same management that assembles the ownership group, manages and maintains the property, and markets and rent the time you are not in residence, ownership is completely headache-free.
With up to three weeks use of the property, an owner will earn an annual income. Based on conservative rental projections, a co-owner of one of these properties will earn an annual income – that is, more than cover the mortgage and upkeep expenses of the property – by using anywhere up to three weeks of their personal use time.
Here’s how the numbers add up for an investment in a sole ownership property versus fractional ownership of the Rue du Four property:
