Fractional Ownership
Fractional Ownership Of A Bach
The dream of owning your own bach is more achievable than you think .
Title Based
Making a holiday home affordable and accessible is why fractional ownership makes so
much sense, enabling your family to enjoy memorable holidays each year where you co-
own your dream property at a fraction of the cost of owning a Bach outright.
Why spend more than what you need to
- Two or more parties to own a Bach and have access to the Bach for several weeks of each year.
- Fractional ownership means that you have your name on the Title, thus this cannot be confused with timeshare.
- Fractional ownership provides you with the ability to maximise your yearly holiday time whilst minimising the cost.
- Depending on your share you may enjoy 6-12 weeks per year at your Bach
Fractional Ownership Benifits
Title-based
Own a title-based share of the property and enjoy the capital gains of ownerships.
Only pay for your share
Fractional ownership lets you own a Bach. You only pay for your portion.
Expenses are shared by co-owners
Your Bach can be rented out for any unused weeks for extra revenue via the Our
Bach property management service.
Known budget
Fixed purchase price for your share and a defined monthly budget.
Fully managed by our bach
You enjoy peace of mind of us providing full property management overseeing the
upkeep and maintenance in order to eliminate worries of having an empty property.
Share the expenses
Our Bach model of fractional ownership significantly reduces responsibility by just paying your share of the costs split equally between the owners.
OWNERSHIP STRUCTURE
A prudent investment
Co-owning via fractional ownership will not only save you money on the purchase cost but keeps the annual running costs significantly lower by sharing the expenses amongst like-minded property owners. You are buying part of direct title for a fraction of the capital value which enables you to enjoy a higher level and quality of a holiday experience.
Lifestyle and Usage
Get to enjoy your Bach being your home away from home each year via a fixed rotational calendar allowing you to plan well in advance. By rotating each year, you will get to experience the other weeks, and you can be assured of your first and second choices.
Peace of mind – Fully Managed
Our Bach manage the property, you do not have to worry about the upkeep or
maintenance of your Bach. Everything will be prepared and ready awaiting your arrival, right down to freshly laundered linen and towels so you can relax the minute you arrive.
How fractional ownership measures up
The following is a generic example that demonstrte the optimum use of capital and minimising of expenses by way of co-ownership.
Own
INITIAL OUTLAY $1.6 million
All additional expenses including:
Sale & Purchase fees
Legal Fees
Insurance
Repairs & Maintenance
Rates & local taxes
Fractional
INITIAL OUTLAY $400,000
Based on 4 co-owners
Yearly divided between 4 co owners Contribution of $28,000,00
eg: divided by 4 co owners
Includes:
Power
Water
Management Fees
The running costs, under the Our Bach model inclusive of repairs, maintenance and
insurance, are divided up amongst the co-owners, whether or not it be four or six
owners.
Each Our Bach property is provided with a budget that shows the expenses payable
by each co-owner so there are no surprises.
Frequently Asked Questions
How is fractional ownership different from timeshare?
The two are distinctively different.
Fractional ownership means that your name is on the title and you are an actual owner registered on the title where timeshare you typically have a share in a company and that
company owns the property.
How is fractional ownership different from syndication
Typically with syndication you are investing in shares in a company that owns land and building. With Fractional Ownership you hold the actual Title in your name. In essence, the ultimate security.
Do I actually have ownership of the property?
Yes, your name is on the title which is registered. This is by far the preferred method of property ownership.
Are our Bach properties furnished?
Yes, the properties are fully furnished, enabling you to walk in and enjoy your holiday
experience.
How much capital will be required?
There are a number of variables to answer that question. It depends on how many
participants. Generally speaking, each purchaser would need to have approximately 20% to 50% of
the property value.
How many weeks of the year can we use our Bach?
It depends on how many co-owners. The Bach has a schedule of use of 49 weeks of the year; the balance allows for maintenance and upkeep. If there are four owners, the time allocation is some 12-weeks per annum for each co-owner. If there are six owners, it will be approximately 8-weeks per annum.
How do we share responsibilities?
The owners enter into a property sharing agreement which is in place before the property is settled. The property sharing agreement sets out each of the owners’ rights and responsibilities in relation to the property and ensures all the owners are on the same page. It also highlights any issues before the parties finalise their agreement. Very importantly, the property sharing agreement anticipates the what ifs, covers maintenance, rent, income, obligations and what if one of the parties wishes to exit. The agreement also covers a process in the event of minor disputes.
How do we express an interest without obligation?
Complete the enquiry form at manager@ourBach.co.nz or go to the Enquires section.
