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Collective-Ownership - Invest In Your Holiday

Published: 17 December 2018

A new model of property ownership has been designed specifically for people who are drawn to the idea of having a holiday house but don’t necessarily have time to enjoy lengthy stays at a second home.

Collective-ownership is common practise in America and Australia, but is relatively new to Europe.  Sometimes referred to as ‘fractional-ownership’, it is comparable with the traditional ‘share-of-freehold’ practice in the UK.  In a traditional ‘share-of-freehold’ arrangement owners occupy, on a year-round basis, a property, such as an apartment, in a building that is co-owned with the other freeholders. By adapting this ownership model, shareholders collectively own a property and each shareholder occupies the entire property for a number of weeks each year.

The number of weeks at the property that can be used by each shareholder is dependent on the number of shares owned.  In the example of the Italian farmhouse for sale near Amalfi listed below, the entry point is a £120,000 investment for a 10% share which offers 5 weeks occupancy each year. A 20% share would give 10 weeks occupancy, 50% share would give 25 weeks occupancy etc etc. The weeks tend to be split into two and one week blocks and run on a 10 year rotational basis. If an owner doesn’t want to use an allocated week, it can be rented out to generate an income.

The concept allows owners to enjoy all the upsides of owning a large, luxury property with plenty of space for extended family and friends, without having to pay the often £1mill+ price tag for the property or have the responsibility of all the year-round costs of maintenance and service.

This model of ownership would not suit everyone.  For example, it is probably not an arrangement for those looking for a place in the sun to enjoy long stays during retirement.  However, for those that do not have extended periods of holiday time available, collective-ownership is a new concept worth investigating.

The benefits of collective-ownership are not simply having a large luxury property to enjoy your holidays.  Other considerations would include:

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* A bespoke management system that means the property is clean and ready the moment you arrive - no long list of ‘opening-up’ duties required - cleaning, dusting, pool-clearing, laundry sorting etc etc. You can just relax from the moment you arrive.

* No need to spend the last few days of your holiday ‘closing-down’ the property either - you just walk out the door and cleaning/maintenance duties are all taken care of.

* You can still have personal belongings such as photos, pictures and furniture at the property, these will be arranged prior to your arrival and safely stored after your departure.

* The property is occupied, cleaned and maintained in your absence so you do not need to worry about security at an empty property.

* The pool and grounds are beautifully managed year round - no hacking the undergrowth during your holidays needed.

* Maintenance costs are split and shared across all owners

* Maintenance and upkeep can be arranged through a management company with trusted workmen and contacts.

* If agreed with other owners, a property car can be bought for the use of all for a fraction of the cost of car rental every time you visit.

* Easy holiday rental infrastructure, both marketing and staffing, is already in place for any weeks you don’t want to use the house

* Shares in the property can be sold at any time

* At the collective-ownership property near Capri in Italy, the use of a luxury motor boat in included in the ownership agreement

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Collective-ownership means you have all the benefits and service you might expect when of staying in a luxury holiday rental property.

This last point is important as the collective-ownership purchasing model should not be confused with a time-share arrangement.   Once the investment is made, the purchaser has an owned asset and, as with any bricks and mortar investment, those shares are a generational asset that can be sold or passed on to family members. In Australia and the US, collective-ownership is common practise, and is used not just for property.  Groups of people also use the mechanism to buy swimming pools, cars and just about anything else they might enjoy, but do not need to use the whole time and it is a good way of spreading  maintenance costs and responsibility.  Collective-ownership means you can invest in a beautiful property.  Visit year on year, building memories over time which can continue long into the future as the property is passed on to children and grandchildren to enjoy.

This beautifully restored farmhouse for sale in Italy is offered as a collective-ownership arrangement and might just offer food for thought.  


Italian Farmhouse with Infinity Pool

Beautifully renovated 300 year old farmhouse

Fully furnished with stunning interiors

Large infinity swimming pool

Well-kept gardens with olive grove & grape vines

6km from beach and marina

Use of private luxury yacht


If you are interested in the collective-ownership concept or would like to find out about the specific arrangements for this property, please just give us a call on 01647 507407 and we would be more than happy to answer any questions you might have.

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