Frequently Asked Questions
NCE Properties creates a Limited Liability Company (LLC), which will be a Single Purpose Entity that is the legal owner of the property. The LLC then issues five (5) equal ownership shares equivalent to 20% for each co-owner.
Investors (4/5 of the shareholders) of the property forward a one-time capital contribution. These funds are combined to acquire the property and pay the taxes and fees related to the purchase, in cash. As a part of the capital contribution is also furniture and accessories for preparing the property for the first season. There is no debt permitted in the LLC.
Each investor pays their prorated share of the annual operating costs and management fees. Each partner enjoys 10 weeks of use per year and can sponsor unaccompanied guests and has the right to rent out for earning rental income.
NCE Properties as the fifth shareholder owns 20% of the property and the right to use the property for 10 weeks per year, including the right to rent out for earning rental income.
NCE Properties is the administrator of the property and responsible for the payment of property tax, cleanliness tax, insurance, electrical, maintenance and cleaning which is included in the annual operating costs and management fees.
There is a defined, 8-12 year exit strategy so it is clear upfront how and when your investment, plus any appreciation, is returned.
The annual fees cover all operating expenses associated with owning a property abroad: property taxes, insurance, utilities, homeowner association fees, miscellaneous repairs and maintenance, etc.
NCE Properties is also compensated for its 24x7x365 management of the property, accounting services, reviewing, and approving all invoices by the various providers and trades and remitting payment, actively managing the reservation request process for arrival/departure of users and rental guests as well as preparing the property between each user/guest.
Our mission is to ensure that every moment of your vacation is spent on vacation and that there are no maintenance demands that are associated with owning a holiday home.
What about gains in the value of the property and how is that distributed?
At the completion of the 8-12 year LLC term, the property is sold at its highest possible value. The partners will first receive back their original capital contribution and then their share of any gains in the value of the property that may have accrued over the LLC term.
If the partners are not ready to sell, there is the option to extend the LLC term another year via a supermajority vote.
In a typical timeshare real estate offering, there are several weaknesses in the model:
There is no exit strategy in most timeshare projects
Each owner is left to their own devices to resell their share, which is difficult and typically at a loss since it is not the property, but only the shares from one (1) owner that is selling. Our model has a defined exit strategy, so you know exactly when and how you are getting your investment back, and at the same time as all other owners.
There is no demand for timeshare real estate share’s in the market
As the timeshare developer earned their margins on the front end of the transaction, with markups of 50% or more on the real estate’s value when originally offering the fractional interests, it is not uncommon for a timeshare real estate owner to realize only 30%-35% of their original investment when they sell their share. If they can sell it all.
In our model, the home is both acquired and resold as traditional whole ownership, ensuring a predictable, reliable, and hopefully profitable exit strategy for all stakeholders.
Most commercial timeshare projects involve multiple units
Projects that are generally identical residences, i.e., 20 residential units with 160 or more owners. If you own an interest in a commercial timeshare project, you are very likely to stay in different residences each time you go. Our model, conversely, owns ONE stunning luxury second home that only 4 out of 5 partners call home. We have departed 180 degrees from the commercial timeshare product with hundreds of owners and dozens of residences and personalized it completely.
NCE Property’s rotating annual use-calendar allows co-owners to plan their vacations using a fair and equitable schedule. Co-owners can sponsor unaccompanied guests.
Each co-owner is assigned with 10 annual weeks within a 40 week season. The 40 weeks season will most years begin mid-February and run until end-November. The exact yearly season is set by NCE Properties. Each co-owner enjoys a 5-week period at the time.
Spring and summer schedule:
- Owner #1; is appointed with week 8 to 12 (February/March)
- Owner #2; is appointed with week 13 to 17 (March/April)
- Owner #3; is appointed with week 18 to 22 (April/May)
- Owner #4; is appointed with week 23 to 27 (June/July)
Then the schedule starts over…
Summer and Autumn schedule:
- Owner #1; is appointed with week 28 to 32 (July/August)
- Owner #2; is appointed with week 33 to 37 (August/September)
- Owner #3; is appointed with week 38 to 42 (September/October)
- Owner #4; is appointed with week 43 to 47 (October/November)
The order of Owner #4 and #1 changes each year. By rotating the order, all co-owners will have years of holding positions #1, #2, #3 and #4 experiencing the different seasons in a 4 year cycle. The initial year is set from the order of buy-in to the specific co-owning property.
The remaining 12 weeks of the year are considered as winter and are left open as this time of the year is considered “off-season” in North Cyprus. During this period NCE Properties has the right to rent out the property, but will mainly focus on maintenance, getting the property ready for next season.
The weeks you do not which to use from the annual schedule, you can rent out.
The long warm season in North Cyprus ensure high rental opportunities during the 40-week annual co-owning schedule. Renting out yourself, 100% of the rental income belongs to you.
If the community where the home is located offers rental services, you have the option to rent out the weeks you do not which to use from each of your 5-week periods. You will in this case receive 50% of the generated rental income.
Yes! You can reserve a share in any of our listed co-owning properties.
The reservation is valid for 45 days and entitles you to conduct an onsite property inspection. You can see all current co-owning properties here: https://www.nce.properties/properties/
We know how important it is to experience the location and the area of a property before investing. It is the same with co-owning properties.
Therefore, we offer exclusive inspection trips where we take you to each of the locations for our co-owning properties so you can get that real feeling of what it would be like to have access to such luxury holiday home.
Check our events calendar and book your visit: https://www.nce.properties/book-your-vist/