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Increasing in popularity for overseas property purchases is co-ownership. The reason for this option usually falls into one of two categories:
- Those with limited funds, pooling their funds to buy a much higher value property than they would otherwise be able to consider.
- Those with funds sufficient for one property but wishing to create a portfolio of letting property with friends or colleagues.
For those considering buying together with friends or relatives we have one word of advice: Beware! Whilst it will be a good idea for some, it will never be worth putting your relationship in jeopardy, by not taking advice first. If potential purchasers are considering co-ownership, then we would encourage them to contact us for advice before making a purchase. We have considerable expertise in this area, and we may be able to make relevant suggestions that would protect all involved.
Our advice and help is free to purchasing clients, as the owner or the developer selling any particular property pays our remuneration. Therefore there is no reason for not asking for our help in your proposed purchase.
Fractional ownership as it is called, is getting very popular for families. In effect your ownership is governed by the amount of funds you offer to the pool. The fraction of ownership is in the number of shares in the property.
if you are considering this option, you need to elect a spokesperson from your group to administer the process. We have considerable expertise in this area and will be happy to help your spokesperson and conduct the process with them.
For friends and relations, the setting up of a company to purchase overseas property is a much safer way of investing in property together, as owning shares within a company will remove the emotional attachment from the purchase. Letting property will also be made easier if there are several shareholders contributing to the marketing strategy for letting. Owning several properties in various countries within a letting portfolio will not only give the shareholders diversity for themselves, but also will attract and sustain letting clients on an ongoing basis.
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