Luxury properties have seen a significant decline during the last 18 months, although prices paid for buildings in certain locations have hit record highs (just read the article on the sale of the “cheesegrater building”).
Whilst the number of purchases made in luxury properties is down, the price paid for luxury property for is up dramatically, which show there is still fervent demand for luxury property.
This demand has given birth to a fractional ownership company that specializes is luxury property The Hideaways Club, they have been operating for ten years and have negotiated some pretty tough times, so why have they been so successful when so many others have failed.
If you have a bit of money these days, enjoyment comes less from “owning” and more from “being” and “experiencing”. So says Stephen Wise, co-founder of The Hideaways Club.
“The top end of the socio-economic spectrum is moving further away from the tangible show of wealth,” Wise adds. “Many have realized that owning that second or third home overseas can come with huge downsides and not actually deliver the true goal of an incredible experience.”
Hideaways, has some impressive stories on the experiences their members have had through the club, One member staying at a property in Italy awoke to see Bocelli on horseback, regaling her with a private concert as he rode through the countryside.
One investor holidaying mentioned her daughter would love to see an elephant. “The next morning, her daughter awoke to find an elephant waiting in the garden. Someone had walked through the night to deliver it from the nearest sanctuary,” says Wise.
Fractional ownership is not to be confused with timeshare.
With timeshare, you own nothing just a few weeks at a resort, with fractional ownership you own shares in the property which means you benefit any increased value when you sell your shares.
“We prefer to call it asset share, we were desperate to avoid the timeshare perception in the early days,” says Wise. “Now the issue seldom comes up.
Members range Tim Henman, to dot-com entrepreneurs and Asian billionaires.
Investment ranges from £69,500 to £88,000.
The average purchase price per property is around £1.2m
On average, the properties have risen in value by about 20 per cent, says Wise.
Members pay an Annual Cost Contribution (ACC), from £3,750 to £15,000
For more property investment detail, please visit DevDosh Ltd today.