Top five myths about fractional property ownership debunked

$Blog - Top five myths about fractional property ownership debunked$

Fractional property ownership is a growing trend in property investment, but misconceptions about this innovative approach often hold investors back. By separating fact from fiction, we can help you make informed decisions and unlock the potential of this exciting investment strategy.

1. Myth: Fractional ownership is the same as timeshare
Fact: Fractional property investment and timeshare are entirely different. With fractional ownership, you own a share of the property, which often includes legal rights to rental income and capital appreciation. Timeshare, on the other hand, typically grants only the right to use a property for a specific period each year. Fractional ownership provides a genuine stake in property, making it an attractive option for those looking to find an investment property with a potential for long-term growth.

2. Myth: Fractional ownership is only for luxury properties
Fact: While fractional ownership is popular in high-end properties, it is not exclusive to luxury properties. Investors can access a wide range of opportunities, from residential homes to commercial properties, depending on their financial goals.

3. Myth: Fractional property investments are not profitable
Fact: Fractional ownership can generate rental income and capital appreciation, making it a profitable option for diversifying your portfolio. By spreading your investments across multiple properties, you can mitigate risks and increase returns. At TAB, we offer an interest rate calculator that helps you determine your potential return on investment. For example, if you invest £100,000 with an added ROI of 0.75% per month, your monthly return would be £750, allowing you to easily assess the profitability of your investment.

4. Myth: Selling your share in a fractional property is difficult
Fact: While liquidity may vary, selling a fractional property share is not as challenging as many think. Market demand for fractional ownership is growing, and many platforms offer secondary markets for reselling shares. Additionally, TAB Market provides a platform where investors can explore fractional ownership solutions in properties and offers the ability to share your stake should there be a willing buyer, offering transparency and a structured resale process.

5. Myth: Fractional ownership is too risky
Fact: As with any investment, fractional property ownership comes with risks, such as market volatility and illiquidity. However, the risks can be managed through proper research, diversification, and partnering with trusted platforms. By diversifying across different commercial properties and investment opportunities, investors can create a balanced portfolio that aligns with their financial objectives.

Why choose TAB for fractional property investment?

TAB simplifies fractional property ownership by offering access to a range of property investments. Through TAB Market, investors can explore opportunities in carefully selected properties, with clear investment structures and transparent processes. By providing detailed insights, ongoing support, and a straightforward approach to fractional ownership, TAB helps investors make informed decisions and navigate the market with confidence.

This information does not constitute advice or a personal recommendation. As with any investment your capital is at risk, and you should seek advice concerning suitability from your investment adviser. TAB is not authorised by the Financial Conduct Authority. Investments are not regulated, and you will have no access to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).