I encourage everyone to buy a property of their own. No one knows how much property prices will rise but on a longer term, it will surely be rising simply due to inflation and the cost of construction including land prices.
Look at the image showing the Malaysian House Price Index. We could see the average price increase for the periods of 1990 – 2016 is 6.5%. It has since been on a downtrend but has remained positive for all these ‘slow’ years.
Speaking about property prices, when property prices gets prohibitive for one person to buy by himself, he could rope in his wife. When it gets even more expensive, they could rope in relatives.
If someone one just did not save enough yet, it’s possible to jointly own a unit via fractional ownership.
So, one could technically just own a part of the home and still be able to get the potential capital appreciation based on his share. This is way better than to keep the money in some accounts earning a tiny interest.
What about those wanting to fly but prefers to fly in a private jet but do not want to buy the whole jet by himself? Great news. Own a private jet based on number of days…
Article in forbes.com here. Traditionally, both fractional ownership and jet cards have been charging travel time by the flight hour except Airshare, a Kansas-based operator of small private jets which used a by-the-day formula. Now, one of the industry’smajor players – Flexjet has started to sell shares in its Gulfstream G650 fleet by the day. Instead of 200 hours for a quarter share, you get 75 days.
In Flexjet World Access, a quarter share translates to 75 days instead of the traditional 200 hours. This meant that if you are a fractional owner, you could keep the jet with you for an entire trip, including days you are not flying, making the offer closer to the full aircraft ownership experience.
According to Clay Wilcox of Ricci, this arrangement is as best possible mock the experience of owning your own G650, meaning you have the same aircraft for your entire trip, same pilots, and can leave what you want on it when you are making stops.
The article is a long one and explains the many differences between the by hour arrangements and by day. It is saying that ownership by day will give a better deal to the owners than the hourly arrangement. For the full article, do read here Article in forbes.com here.
Anyway, this is only for super-wealthy…
Anyway, this is only for the super-wealthy. It does not just save them lots of money because now they do not need to own the whole jet until it has to be sold.
It gives them flexibility and they could take their friends on 4 different jets for the same amount of money to buy one jet! Fractional ownership is an interesting concept.
A friend said that in the future, everyone will just jointly own a car because actually they do not need to drive on weekdays at all.
Only during the weekends that they may need the car to travel to places without the convenience of public transport for example.
While it looks like it makes sense but this will also mean that the joint owners should have a different schedule for example.
Else, if everyone wants to use the car on the weekend, then how? Haha. Happy fractionally own more things in the future.
Article written and edited by Charles. News article summarised by Dina Batrisyia.
<Featured Image is courtesy of Stock Photos from Lithium366>
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