An elite house in California was put up for sale for more than $2,000,000, but it cost the buyers just over a quarter of a million. As you might guess, this is about a fractional ownership of property, which allows several people to unite to share the financial burden.
In this case, a group of 8 people decided to divide the high price of a large luxury house of $2.2 million, reducing the final price for each to only $275,000.
With the price, the ownership of this building was also divided. Buying a share in a house makes it possible to use it for a certain number of days or weeks a year. A certain period is proportional to the share that each person has acquired.
This practice has recently become popular in the United States of America and is actively developing abroad, including in Spain.
Viva company is one of those engaged in the promotion and development of this model of housing acquisition in Spain. To find out what options the company offers, the client can visit the company's website. It says that potential owners can choose a different number of shares to purchase.
There are different options from 1/8 to 4/8. Each share gives the owner the opportunity to use the housing for six (6) weeks a year. Thus, a person acquires a full house, although only for a certain period but only for a small fraction of its real value. This expands the list of opportunities for buyers.
Carlos Emilio Gómez, co-founder and CEO of Vivla, explains: "Flexible forms of ownership are a new word in the real estate market that transforms the housing sector, usually purchased as a 'second home'. Our company promotes a more sustainable development model for the real estate and tourism sectors. This is a model in which owners make the most of their homes throughout the year."
According to Emilio Gómez, there are about 18 million houses in Southern Europe alone, which are used by their residents only 15% of the time a year. At the same time, there are millions of Europeans who would be interested in owning such a residential property for just a couple of months.
This business-model attempts to bring together the interests of both homeowners and potential buyers, and figures suggest that this approach may develop rapidly in Spain in the coming years.