Fractional Ownership in the Caribbean – The Ultimate Guide
We put together this guide for investors considering fractional ownership in the Caribbean.
Whether your heart is set on Antigua, Barbados, Dominica or St Kitts & Nevis, this guide covers everything you need to know from “what is fractional ownership?” and how it works through to a look in detail at the best fractional ownership investment opportunities in the region.
Fractional ownership in the Caribbean
Contents
How does fractional ownership work?
Is fractional ownership the same as a timeshare?
Is fractional ownership a good idea?
The Gardens – Antigua
The Crane – Barbados
Secret Bay – Dominica
Four Seasons Resort – Nevis
Find Out More About Fractional Ownership Opportunities in the Caribbean
How does fractional ownership work?
So what exactly is fractional ownership and how does it work?
Fractional ownership is a form of shared ownership of property in which a number of investors purchase a deeded share in a real estate asset. In recent years fractional ownership has become relatively commonplace in the vacation homes market. As the owner of a certain percentage of the property, each investor is entitled to use the property for a defined period each year. Typically, title of the property is held in a third party trust on behalf of the investors. A management company will generally be engaged to maintain the property and handle rentals, with administration costs split between all owners. Owners enjoy the right to sell their fraction or transfer ownership to others. Some fractional ownership schemes have links with other fractional developments which means owners may be able to exchange their time at their property for time at another location.
Is fractional ownership the same as a timeshare?
Many people are confused about the difference between fractional ownership and timeshare. While there are some similarities, there are also some major differences. Both fractional ownership and timeshare allow an individual to enjoy time in a vacation home. In the case of timeshare, a buyer only purchases the right to use the property for a defined period each year. However, in the case of fractional ownership, each investor owns an actual share of the property. Therefore, if a property appreciates in value over time, an investor in a fractional ownership property can benefit from the increase in value of the asset over time whereas timeshare owners do not.
Is fractional ownership a good idea?
While not suitable for all investors, fractional ownership is ideal for many and offers various advantages.
Fractional Ownership Versus Timeshare
- Investors actually own a share of the property.
- Fractional ownership often provides access to larger, more luxurious properties then timeshare.
- Fractional ownership offer the potential to enjoy a Return on Investment if the asset appreciates in value over time.
Fractional Ownership Versus Outright Ownership
- Less hassle than outright ownership, e.g. no need to apply for a mortgage.
- Level of initial investment required for purchase is lower than in the case of outright ownership.
- On-going maintenance costs are also lower as running costs are shared among all owners.
The Gardens – Antigua
The Gardens is a collection of 36 new construction luxury homes on Harbour Island in the community of Jolly Harbour on the stunning west coast of Antigua available for both whole ownership and fractional ownership.
Investment Options
Both whole ownership and fractional ownership opportunities are available.
Investment Required
Fractional ownership is available from US $300,000.
How it Works
Investors can acquire a one sixth share of a villa.
Owners enjoy 8 weeks of usage per year, rotated in four-week periods.
Fully furnished and managed.
Fractional owners also qualify for the Antigua & Barbuda Citizenship by Investment Program and have the option to apply for a second passport.
Find Out More
Find out more: Fractional ownership opportunities at The Gardens in Antigua
Fractional ownership opportunity at The Gardens, Antigua
The Crane – Barbados
The Crane is a very well established resort set on a world-famous beach on the South Coast of Barbados.
The resort offers a superb collection of amenities including 5 award-winning restaurants, 5 spectacular pools, fitness center and full-service day spa, flood-lit tennis courts, retail village offering duty-free shopping, convenience store, bar, cafe, art gallery, as well as elevator access to the white sand beach.
Crane Resorts also operates Beach Houses Barbados which is a secluded, low density and eco-friendly boutique resort overlooking the East Coast of Barbados.
Beach Houses Barbados by Crane Resorts features a secluded beach, 2 restaurants and a bar, a state-of-the-art wellness center, flood-lit tennis court, full-service day spa and convenience store, as well as access to all the amenities of The Crane.
Investment Options
Fractional, quarter share and whole ownership opportunities are available at both The Crane and Beach Houses Barbados by Crane Resorts.
Investment Required
Fractional ownership at The Crane is available from US $119,180.
Fractional ownership at Beach Houses Barbados by Crane Resorts is available from US $56,000.
How it Works
Investors enjoy 4 weeks or more usage per year.
Owners have the option to exchange weeks at over 200 luxurious properties and private residence clubs in The Registry Collection.
The management fee is limited to a percentage of net profit after all fees and expenses.
Owners have the opportunity to not pay their annual fees by depositing weeks they do not intend to use into the managed rental pool.
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Find out more: Whole ownership and fractional ownership opportunities at The Crane in Barbados
Fractional ownership opportunity at The Crane, Barbados
Secret Bay – Dominica
Secret Bay is an award-winning boutique resort on the island of Dominica featuring a stunning collection of luxury villas and resort amenities.
Investment Options
Fractional ownership and whole ownership opportunities are available at Secret Bay.
Investment Required
Fractional ownership at Secret Bay is available from US $216,000.
How it Works
Each fractional purchase includes one week per year, membership to ThirdHome, and no annual fees.
Unlike many other resort fractional sales, Secret Bay provides a return on investment.
Fractional owners also qualify for the Dominica Citizenship by Investment Program and have the option to apply for a coveted second passport.
Find Out More
For out more: Fractional ownership opportunities at Secret Bay, Dominica
Fractional ownership opportunity at Secret Bay, Dominica
Four Seasons Resort – Nevis
The exclusive Four Seasons Resort Nevis is a spectacular five start resort offering a stunning collection of villas complimented by world-class resort amenities, a beautiful beach and a championship 18-hole golf course.
Investment Options
Both whole ownership and fractional ownership opportunities are available, both of which qualify the investor to apply for the St Kitts & Nevis Citizenship by Investment Program.
Investment Required
Fractional ownership is available from US $475,000 for a one tenth interest in a luxury villa.
How it Works
Ownership includes 5 weeks of usage per year.
Find Out More
Find out more: Fractional share in a villa at Four Seasons Resort Nevis
Fractional ownership opportunity at Four Seasons Resort, Nevis
Find Out More About Fractional Ownership Opportunities in the Caribbean
Ready to begin your search for fractional ownership opportunities in the Caribbean?
To browse islands and cays from across this stunning region, explore Caribbean property for sale on our website.
Please note that our website only showcases a sample of the private islands available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in the Caribbean.