Fractional Property Model: PetitHaus Co-Ownership Model vs. Finance-Based Fractional Investment

Despite both being alternatives within fractional property ownership models, don't get it confused—there’s a clear difference. Here are a few key highlights that set PetitHaus’s co-ownership model apart from other fintech-based real estate investment and ownership solutions.

PetitHaus Co-Ownership Model vs. Partial/Fractional Investment

PetitHaus Co-Ownership Model:

• Equal Ownership: In PetitHaus’s model, a group of individuals come together to collectively purchase a piece of land. Each co-owner holds an equal share of the property, with equal rights to the land title and decision-making. This means that every participant is a co-owner, not just an investor, and has legal ownership of a fraction of the physical property.
• Active Participation: Co-owners have an active role in decisions related to the property, such as development, documentation, and long-term plans for the land. The goal is not just investment but eventual homeownership, where each co-owner can use or develop their portion of the property.
• Focus on Affordability & Homeownership: The primary focus is to reduce the high entry barriers to homeownership by allowing multiple people to pool resources. PetitHaus helps facilitate this process by guiding co-owners through documentation, development, and construction, ensuring that the property can eventually be used for housing.
• Transparency & Trust: PetitHaus uses a tech-enabled platform to ensure that every co-owner can track payments, property progress, and development in real time, providing transparency and accountability throughout the entire process.

Partial/Fractional Investment:

• Investment Focus: In partial or fractional ownership models, individuals invest in a percentage of a property, but their role is largely that of an investor, not an active co-owner. These investments are often focused on commercial real estate, vacation properties, or high-value real estate ventures where the goal is to earn returns on investment, rather than to live on or develop the property.
• Limited Control: Fractional investors typically don’t have full control over the property. They may receive rental income or profit from property appreciation, but they don’t usually participate in decisions related to how the property is used or managed.
• Profit-Driven: The focus in fractional investment is on generating income or profit from the property, either through rental yields or an eventual sale. Investors aren’t necessarily looking to live on the property themselves, and the property is often managed by a third party.
• Less Personal Involvement: While there may be some transparency in the investment, fractional investors typically don’t have the same level of hands-on involvement or emotional connection to the property as they would in a co-ownership model geared towards homeownership.

Key Difference:

• PetitHaus Co-Ownership is designed for individuals looking to own and live on the property, with an active role in the decision-making and development process, whereas fractional investment is typically for those looking to profit from real estate, without necessarily being involved in how the property is used or developed.

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