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 Barbados, St Kitts, Nevis, the Caribbean coast of Mexico or the idyllic islands off the Caribbean coast of Panama, 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?
Zenith – Nevis
Christophe Harbour – St Kitts
The Point at Petite Calivigny – Grenada
Fairmont Mayakoba – Riviera Maya, Mexico
The Crane – Barbados
Royal Westmoreland – Barbados
Red Frog Beach – Panama
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.
Zenith – Nevis
Located just steps from the beach at Cades Bay on the tranquil island of Nevis, Zenith Nevis is a luxurious villa development offering investors the opportunity to own a home in a spectacular beachfront setting with access to the beach, restaurant, beach lounge, spa, security and gym, child care, parking and room service.
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.
In the case of fractional ownership, investors can purchase a share in a residence at Zenith Nevis which provides them with use of a guaranteed number of weeks per year at the property and use of all of its amenities.
Investment Required
Fractional ownership is available from US $200,000 for a 1/12th interest in a luxury villa.
How it Works
Ownership includes 4 weeks of usage per year: 2 weeks in high season and 2 weeks in low season – subject to availability, or receive rental income on the weeks they do not use.
The investor needs to hold the fraction for 7 years.
Find Out More
For more information on fractional ownership opportunities at Zenith Nevis, please contact us.
Zenith – Fractional ownership in Nevis
Christophe Harbour – St Kitts
Christophe Harbour is a 2,500-acre residential resort development on the Southeast Peninsula of St Kitts featuring a beach club, oceanfront infinity pool, selection of casual and fine dining options, a superyacht marina and a golf club with a Tom Fazio championship 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.
In the case of fractional ownership, investors can purchase a share in a villa at the Christophe Harbour Windswept Residences Club which provides a guaranteed number of weeks per year at the resort and use of all of its amenities.
Investment Required
Fractional ownership is available from US $200,000 for a shared interest in a 4 bedroom luxury villa.
How it Works
Ownership includes several weeks usage per year for personal use or rental.
An annual rotation schedule ensures that all owners enjoy high season weeks.
Pricing is all inclusive for the first 5 years of ownership.
Find Out More
For more information on fractional ownership opportunities at Christophe Harbour, please contact us.
Christophe Harbour – Fractional ownership in St Kitts
The Point – Grenada
Set on the spectacular southern coast of Grenada, the Point at Petite Calivigny is a luxurious boutique private residence club comprising a collection of contemporary condos and villas with stunning views of Benji Bay and a collection of amenities including 2 large pools, gym and spa.
Investment Options
Both whole ownership and fractional ownership opportunities are available, both of which qualify the investor to apply for the Grenada Citizenship by Investment Program.
In the case of fractional ownership, investors can purchase a share in a condo at the Point which provides them with use of a guaranteed number of weeks per year at the property and use of all of its amenities.
Investment Required
Fractional ownership is available from US $350,000 for a 1/6th interest in a luxury condo.
How it Works
Ownership includes 5 weeks of usage per year.
Should the owner not use the entitled weeks, the property will be placed in a professionally managed rental program and the owner will receive a share of the rental income.
Owners also have the option to exchange weeks at the Point for a stay at 650 hotels, resorts and properties in over 85 countries with Interval International and Preferred SM Residences.
Find Out More
For more information on fractional ownership opportunities at the Point at Petite Calivigny, please contact us.
The Point at Petite Calivigny – Fractional ownership in Grenada
Fairmont Mayakoba – Riviera Maya, Mexico
Fairmont Mayakoba is a collection of 3 and 4 bedroom residences and penthouses located adjacent to a spectacular 18-hole golf course designed by renowned PGA legend Greg Norman within the grounds of the 620-acre Mayakoba beach and golf resort community near Playa del Carmen on Mexico’s Riviera Maya.
Investment Options
Fractional ownership opportunities are available at Fairmont Heritage Place. These 16 residences and penthouses feature spacious open plan interiors with features and amenities hand-picked by Fairmont, expansive private terraces and private swimming pools.
All residences enjoy access to the resort’s amenities and services such as the private pool, restaurant, kids’ club and fitness studio, 24-hour concierge and butler service, valet and transportation.
Investment Required
Fractional ownership is available from US $219,000 for a 1/12th interest in a 3 bedroom residence or from US $325,000 for a 1/2th interest in a 4 bedroom penthouse.
How it Works
Ownership includes a minimum of 21 nights of usage per year with options for more weeks.
Average annual operating fees – 3 bedroom residence: US $9,200.
Average annual operating fees – 4 bedroom residence: US $11,700.
The Fairmont Worldwide Exchange Program offers the option to exchange up to 2 weeks per year at other destinations in the Fairmont Residences and Accor Hotels portfolios, as well as at properties around the world in The Registry Collection.
Find Out More
For more information on fractional ownership opportunities at Fairmont Mayakoba, please contact us.
Fairmont Mayakoba – Fractional ownership in Mexico
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.
Find Out More
For more information on fractional ownership opportunities at The Crane in Barbados, please contact us.
The Crane – Fractional ownership in Barbados
Royal Westmoreland – Barbados
Royal Westmoreland is a luxurious golf and beach resort in St James on the prestigious West Coast of Barbados.
The estate features over 250 beautiful homes, an 18 hole Robert Trent Jones Jr golf course, members only beach club on Mullins Beach, fitness center, salt water swimming pools, clay tennis courts and an elegant club house.
Investment Options
A selection of villas, townhouses and apartments are available for both whole ownership and fractional ownership.
Investment Required
Fractional ownership is available from US $28,000.
How it Works
Owners enjoy 2 weeks usage per year.
Owners may exchange their weeks for other villas and time periods at Royal Westmoreland via the Par Points internal exchange system.
Owners may also exchange their weeks via external exchange with Preferred Residences and Preferred Golf.
Investors have the option to trade in the fractional share as a deposit against a full ownership residence in the future.
Find Out More
For more information on fractional ownership opportunities at Royal Westmoreland in Barbados, please contact us.
Royal Westmoreland – Fractional ownership in Barbados
Red Frog Beach – Bocas del Toro, Panama
Red frog beach is a well established, family-friendly resort in the idyllic Bocas del Toro archipelago on the Caribbean coast of Panama.
This family-friendly resort offers fun for all the family with a marina, beach club, spa and one of the most beautiful beaches in Panama.
Investment Options
Red Frog Beach offers a selection of whole ownership investment opportunities including villas, condos and land.
Fractional ownership opportunities are also available at the Red Frog Beach Private Residence Club which comprises a collection of fantastic fully-furnished villas set on half acre sites with private pools and panoramic views of the Caribbean Sea.
Investment Required
Fractional ownership is available from US $49,000.
How it Works
Owners enjoy personal or guest use for 5 weeks of each year.
Find Out More
For more information on fractional ownership opportunities at Red Frog Beach in Panama, please contact us.
Red Frog Beach – Fractional ownership in Panama
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.