Fractional Ownership Property - Fool-Proof Entry Level Investment

Most of you will have heard the term fractional ownership by now, it has increased massively in popularity since the credit crunch increased risk aversion in the field of overseas property investment.

Though there are different set-ups, fractional ownership is -- exactly what it sounds like -- buying a fraction of a property in conjunction with other fractional owners, each buying and owning an equal share with equal rights over usage and equal shares of any rental income.

It is an excellent entry level investment, because the outlay is minimised, and while the returns and split, so is the potential risks involved.

You can look at it like this, what you are paying out is cheap for a lifetime of holidays in top-notch accommodation, that way any returns are a bonus. For example:

I have just found a fractional ownership development on sale at azureoverseas.com, £16,000 buys you an 1/8th share of a 1 bedroom bungalow in a fully equipped Costa Caleta resort. The package includes 6 weeks of usage throughout the year for each of the owners.

For the six weeks holiday for 4 people in the level of (5 star) accommodation that it is, you would be paying at least £3,000 each year. Thus after 6 years of usage the property has paid for itself and any returns you have made during that time and from then on are a bonus.

View fractional ownership property for sale in Spain