I have encountered a number of articles about fractional ownership of US, especially Florid,a properties in UK and European media. Some of the precistions say that fractionals can reach up to 50% of all second home sales to European buyers. Major points why buy in US were:
1. Fractional ownership (also timeshare) are much more advanced in US from legal and pracrtical standpoint.
2. Fractional property is more a lifestyle purchase than investment and carries less risk and headache of management.
3. Definitely price tag.
4. Financing of fractional properties in US became easier for Europeans in the last 12 months.
50% share of second home market is a very bold estimate and still has to be reached, but what is definite now - Europeans are looking moire and more at fractional market in US and it could become a very lucrative business for real estate agents here.
I do international marketing campaigns of Naples real estate through my own portal http://www.realestatefair.net and numerous affiliate real estate portals in Europe covering over 25 million visitors monthly these days. Here is my personal experience with marketing fractional properties in UK, Germany, Italy, France and Russia.
1. Most visitors (leads) were unattentive what kind of property is that. Just looked at price tag, say $60,000 and obviously thought that that kind of investment would definitely fit their budget. Therefore after providing their contact info to me and initial phone contact, most of them were surprised to learn that it wasn't a whole condo or home, but a fractional ownership property.
2. After that despite I clearly stated that the property is listed in Naples, Florida, I learned during our phone conversation that they were mostly looking in Orlando and Tampa area. Again, most people did not even bother to readn where the place is - just looked at price tag.
3. Suprisingly enough most of leads wanted to come over within 3 months or substancially less if they liked a specific property. I sent a bunch of MLS references and even went to shoot a video of some homes and condos to show how community looks like. Very effective by the way.
So as I see it there should be several steps before you get fractional buyers to come over.
First market the price tag. Next let autoresponders explain fractionals and location. Next follow with a phone call nad go with specifics. Out of 56 fractional property leads in May I have 14 Brits physically coming to Naples in June, however only 5 of them will look at fractionals. The rest want foreclosures up to $150,000 and only one guy wants something in the area of $250,000. However if you look at it from the point of you of lead conversion the whole thing looks pretty good.
I have a detailed article about fractionals on http://www.realestatefair.net
My Naples real estate sale website is http://www.naplesrealestateseller.com
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