Samui Phangan Real Estate Magazine February-March

Beach Republic’s exciting new fractional ownership
option. An increasing popular form of ownership
around the world, fractional ownership allows the
owner to purchase only the time that he or she wishes
to use and all maintenance and upkeep is taken care
of by the resort.
To learn more about fractional ownership at Beach
Republic and in general, Samui Phagnan Property
Magazine recently sat down with Beach Republic’s
Director of Sales Robert Pestello.
78 samui phangan real estate
1.What is the proper role of fractional ownership
in the world of international property?
For the buyer, fractional ownership offers owners
access to high-end properties at a low price point,
while providing for a level of flexibility and convenience
that is simply not possible via sole ownership. For the
developer, fractional ownership allows access to a far
greater number of potential buyers while allowing for
increased overall revenue.
2.Is it suitable for use with investment property?
In relation to hotels, resorts, and high-end residential
real estate, fractional ownership can be a strong fit.
However, investment property in terms of commercial
space is unproven.
3.How much of a premium should you expect to
pay compared with the same property sold as a
conventional 100% ownership?
It is fair to pay a premium of anywhere from 1.4 to 2.7
times. However, the premium can fluctuate greatly
depending on many factors including the quality of
use plans, amenities, location, and overall desirability
of the project.
4.How should management charges be
controlled?
Management charges should be 100% transparent
PERIOD. An annual report with all costs should be
provided to owners. Where the amount paid has
surpassed the actual cost, the difference should be