While researching the purchase of a rustic finca in Mallorca or a dream holiday home on the Baltic Sea, you often come across timesharing. An alternative to this is the so-called MYNE co-ownership. Both models promise pro rata ownership of a holiday property but differ greatly in many respects. In this article, we will highlight the differences and advantages of both models. Buying a pro rata holiday home? We will help you find the right option!
Let's take a detailed look at the models. How do timeshare and MYNE co-ownership differ? Which model offers you the best conditions to finally buy your dream finca in Mallorca or your own holiday home on the Baltic Sea?
Timeshare customers enjoy regular usage rights of holiday properties, which are usually larger complex facilities with multiple units. By acquiring shares in a management company, they gain the right to lifelong vacations in the chosen resort. As recurring guests, usually for one to two weeks a year, they have the right to vacation on-site, but the property remains the ownership of the respective timeshare operator. Vacation periods are usually distributed according to strict rules or complicated internal points systems, and additional costs for the facilities need to be paid separately.
In the case of MYNE co-ownership, also known internationally as fractional ownership or managed co-ownership, the buyer actually acquires indirect ownership of their holiday property - they buy a fractional share of the holiday home. For example, with MYNE, these are exclusively legally independent individual houses. All owners become shareholders of a German company, which is registered as the owner of the property in the land register. From a tax perspective, this ownership is fully equivalent to private ownership/co-ownership and allows for unrestricted use. Simply put, buyers become legitimate co-owners of the property. The incurred costs, which would also be applicable in sole ownership, are shared among the co-owners in this case.
A significant difference between timeshare and MYNE co-ownership of a holiday property can be observed regarding the owners. While a timeshare property is often used by hundreds or even thousands of parties, the number is significantly lower in the case of co-ownership. In general, it is usually two to a maximum of eight parties who collectively purchase a single holiday home.
As legitimate indirect co-owners of a holiday home, all parties have complete control and responsibility over their respective property. This responsibility allows for a lot of freedom in decision-making, but at the same time, it also entails obligations. Regularly recurring tasks are usually delegated to external service providers. The owners have the right to freely choose these services and, if unsatisfied, consider changing the property management. In the timeshare model, the complete control and responsibility for the property do not lie with the users. Instead, the actual operator of the holiday property remains responsible for the tasks that arise. At first glance, this relieves users of certain obligations, allowing them to enjoy their vacation without worries. However, upon closer inspection, it becomes apparent that timeshare properties are often negligently maintained after all shares have been sold.
Timesharing is designed for the masses: the lifetime guarantee of vacationing in your own holiday home is meant to be an attractive and affordable alternative to yearly hotel vacations. Users typically share their vacation property with a multitude of unknown co-owners. To make the model affordable for the end consumer, the properties are often simple, small apartments. The only service offered is usually the classic housekeeping. Due to the short duration of stays per year, timeshare users generally lack an emotional attachment to the property. They see their purchase as an extension of their lifestyle rather than an actual investment. As a result, they take care of the property less, and over the years, it suffers from heavy wear and tear due to the high number of visitors and the lack of a personal connection.
Those who opt for MYNE co-ownership of a vacation home enjoy much better quality and professional service. Spacious properties with ample space, high standards, exceptional service, and additional amenities are offered. Who doesn't dream of owning their own finca in Mallorca with sea views and a pool? Property managers and service staff usually know the few co-owners personally and can tailor the services to individual preferences. This includes providing personal items or stocking the fridge before the owners' arrival. The co-owners of a vacation property view it less as a short-term vacation environment and more as actual co-ownership. They spend several weeks per year in their vacation home and have a strong emotional connection to the property. They take pride in and take care of their own home, regularly addressing any issues and investing money in maintenance. Ultimately, every co-owner benefits from a well-maintained property when it comes to potential future resale.
The duration of use for the vacation property varies for both timesharing and MYNE co-ownership, depending on the number of co-owners. In general, timeshare limits the stay to one or two weeks per year due to the high number of co-owners. On the other hand, MYNE co-ownership guarantees a minimum of six weeks of relaxation per year, often much more. While timesharing often restricts vacation periods to specific agreed-upon timeframes, co-owners of MYNE properties can coordinate and distribute their stays freely among themselves. MYNE provides its customers with an intuitive reservation system through an app. The app is easy to use and ensures a fair distribution of peak and off-peak seasons among the co-owners.
Due to notable differences in quality, service, and property size, the costs of timesharing and MYNE Co-Ownership vary significantly. While timesharing offers an affordable alternative to yearly hotel vacations, co-ownership entails a long-term investment in the future. Consequently, the acquisition and maintenance costs for co-ownership of a vacation home are higher. However, it's important to note that costs for maintaining timeshare properties can increase over the years due to wear and tear.
The value of timeshare shares decreases due to the wear and tear caused by inattentive users and low-quality service. Since timeshare users are only shareholders and not owners of the actual property, they do not benefit from any increase in value. Despite the significant appreciation of vacation properties, value appreciation is rarely observed among timeshare users. Timeshare shares are often difficult to sell altogether, and if they are sold, it is usually at low prices. Additionally, any potential gains would be subject to long-term taxation. With MYNE co-ownership of an individual property, it's a different story. The indirect ownership is secured with an entry in the land register. All co-owners benefit equally from any increase in value. Do you want to sell your co-ownership? After one year, you can make that decision at any time. Your co-ownership or partnership share is largely freely transferable, and due to the high demand for exclusive legally independent vacation homes and villas, we also anticipate strong demand. Since the co-ownership share is treated for tax purposes as private property, profits may even be tax-free under certain circumstances. You determine the selling price, and at MYNE, we take care of the sale. By the way, you can find detailed information about buying and reselling a property on our FAQ page.
Now it's up to you: Do you want to become a recurring, anonymous hotel guest and be part of the timeshare model? Or do you want to proudly own a share of a high-quality vacation villa as a legitimate owner? MYNE co-ownership of a premium vacation property promises planning security, independence, and, not least, an attractive investment. At MYNE, we want to make the dream of owning a vacation property accessible to more people.