Costs of buying and owning through Sojourn8
SHARE THIS POST:
When buying a second home, the costs and fees payable are an important consideration, and it will be no different with a fractional purchase.
We are committed to complete transparency with our ownership framework and that includes ensuring you are clear on the costs payable so you can make an informed decision about your purchase.
Paid on purchase
Purchase fees, costs and taxes - These cover the legal and notary fees and costs payable on a purchase and the local and national transfer taxes. They vary depending on the country but you should allow up to 15% to cover them.
If you are interested in joining a group rather than buying a share in one of our listed properties, we will discuss with you at an early stage the likely purchase and ownership costs.
Upgrade costs - Each property will have a thorough makeover to create a beautifully designed, furnished and equipped holiday home. The extent of the work will depend on the property and we will discuss with you the plans and associated costs.
Aggregation fee - Sojourn8 charges a one off fee of 10% of the total purchase price for the property. This covers the aggregation of a group of fully vetted buyers, overseeing the purchase process, setting up the ownership structure and management arrangements, the legal costs relating to the ownership and management documentation and arranging all works and furnishing of the property.
Annual ownership costs
A key benefit of sharing ownership of your holiday home with a few other owners is that you also share the ownership costs which you would otherwise have to pay on your own.
For each year, a budget is prepared setting out the expected costs. Each owner pays their share at the beginning of the year. At the end of the year, a detailed statement is prepared and any adjustments dealt with. These costs cover:
Cleaning - Your home will be cleaned and an inventory check carried out after each owner's stay.
Routine maintenance - This will include upkeep of the property, garden and pool and any additional land forming part of your property
Utilities and insurance - Sojourn8 will arrange payment for services such as water, drainage, gas, electricity and broadband. We will also arrange buildings, contents and public liability insurance.
Property taxes and charges - Sojourn8 will arrange payment of all property taxes and depending on the property, any local service or community charges.
Repair and maintenance - This includes non-routine work which may be required to your home and payment into a reserve fund to cover unexpected or one-off expenses.
Property management - A local, professional management company will be appointed by Sojourn8 to deal with all cleaning, repair and maintenance, ensuring your home is exactly how you expect it each time you stay. Their fee will depend on the property and the number of owners. Sojourn8 will oversee the management arrangements and legal structure, administer the usage rights and act as liaison between the owners. We charge an annual fee of £900 per share.
Comment on this article
Other articles you may like