Developer Barrasford and Bird Worldwide recently announced it was to enter the fractional marketplace with the Halcyon Hills Luxury Resort and Spa, after a historical background in offering full ownership properties. With fractions in the Samos-based resort starting from £19,000, managing director Robin Barrasford says the company aims to reach a wide market and that some of the fears buyers have over the fractional concept can actually be positives once properly examined.

Q: What led you to enter the fractional market after a background in whole ownership?

A: We noticed very quickly that the market was changing and to combat those changes we needed to adapt. Buyers were more inclined to window shop and were tentative with their funds, so we needed a product that allowed flexibility of ownership and opened up the luxury five star resort to a more diverse demographic. Fractional ownership reduced starting prices and offered the same benefits as full ownership - but literally at a fraction of the cost.

Q: What, then, are the key messages you give to consumers about the pros and cons of fractional ownership compared to full ownership?

A: The positives are that you can have title deed ownership of a luxury property at a fraction of the cost, and with minimal maintenance costs (as these are split between owners). You can also sell at any time – your fraction increases in value along with the property and you can benefit from both rentals and capital appreciation. You can also buy with family members and friends.

In terms of negatives, you will only receive four weeks usage a year (on a rotational basis), and you can't use your property as your main residence.

Q: Now you are marketing fractional, are you finding buyers are generally aware of the concept?

A: Had you asked this question a year ago we'd have said no, but in the last year developers and fractional ownership consortiums have worked hard at educating possible buyers to a point where most purchases will have encountered the term 'fractional ownership' during their research but may not know quite enough about the concept.

The British public are naturally sceptical as many remember the timeshare disaster - this is where good sales consultants come in. Potential purchasers are looking for accurate and genuine information. At this stage they don't want to be a victim of the overenthusiastic sales team, they simply want to know what fractional ownership is and how it can benefit them.

In some cases, buyers outside of the UK market are more open minded towards the notion of fractional ownership. For instance, fractional ownership has long been a fond favourite of the American market.”

Q: So are your fractional clients people who have (or would previously have) bought properties outright or is there a different type of buyer fractional is more suitable for?

A: Interestingly there is little to differentiate between full and fractional purchasers. We're finding fractional purchasers are often those that would consider full purchase, but appreciate the notion of purchasing in a variety of property styles. They like the idea of owning a two bedroom villa close to the spa and a three bedroom villa on the frontline, and choosing between their four weeks in each.

Due to the nature of fractional, with its low starting price, we've seen a huge change in purchaser demographic though. Fractional buyers are often those that never thought they'd be able to afford a property investment abroad, those that are looking for a slice of luxury to add to their busy lifestyles but without the hassle of full ownership.

Q: You mentioned the need to offer good information due to the timeshare comparison. What other concerns do you feel people’s have?

A: We've found that the main concerns are based around the other owners of a property. As many purchasers are buying on their own, they don't know who the other owners of the property may be.

However, this can also be a positive. The property is managed and maintained by a professional hotel company. You don't need to worry about who's arriving, when and whether the property has been cleaned throughout in time for your arrival. You need not ever meet the other owners and you don't have to worry about maintenance or other normal full ownership concerns.

Q: What, then, are the main considerations that fractional buyers do need to weigh up?

A: As with any property purchase, those buying in fractional ownership need to do the same level of due diligence. Also, make sure the company setting up the fractional ownership contracts have experience in the market, that  their contracts will have been tried and tested, giving buyers the benefits of that past experience.

Something that may seem quite obvious but can be overlooked is for buyers to check they're buying actual ownership of the property - some timeshare companies have started regrinding their products as fractional ownership, so buyers need to be extra diligent when looking at their contracts.

Q: From a legal point of view, how different is buying fractions versus outright?

A: A company is created that owns the property. That company is then divided into 'shares' - so each fractional owner owns a share in that company. As a share holder you own your share of the legal title. With full ownership, you simply own all of the legal title.

Q: Having decided to make the move to offer fractional, what was it about this particular resort that you felt made it suitable for fractional ownership? What should buyers generally look for, or expect, when buying fractional?

A: Fractional ownership is generally thought of as a lifestyle purchase, however with Halcyon Hills available at the off-plan stage, purchasers benefit from almost 50% appreciation before completion of their property. This makes fractional at Halcyon Hills an ideal investment as well as a lifestyle purchase. In addition to this we offer 7% guaranteed rentals on fractional purchases if owners decided to enter two weeks of their four week usage into the rental scheme.

Q: You talk about the investment dimension, and selling the product on, but with a relatively new concept, who are the potential re-sale buyers?

A: Fractional re-sales are often sold to holidaymakers who have visited the resort in question - they've enjoyed their stay and want to invest in the resort for future use for themselves, their family and friends. However, with an investment product such as Halcyon Hills, fractional re-sales are also popular at this before completion stage, where the profits to be gained by ownership at this stage are quite clear when compared to similar resorts in Greece.