Why Consider Fractional Ownership?

Cost vs. Usage

When you get right down to it, fractional ownership saves money. Since the typical vacation home owner uses their home only a small percentage of the year, for many, there might be unneeded costs involved in buying a full ownership. For example, if you were to purchase a fractional that is a 1/13th share (typically 4 weeks) of the cost of a whole ownership home, you are saving over 90% on the price of the home. In addition, you could save as much 90% on the annual costs of upkeep, maintenance, repairs, taxes, insurance, mortgage payments (if any) and especially headaches.

Deeded Ownership

People often confuse fractional ownership with timeshare ownership. While under the law these two vacation products are similar, timeshare is considered a "right to use" whereas fractionals are deeded. In other words, one is "non equity" and the other "equity." In most cases, timeshare products are typically split between 52 owners or a 1/52nd share. A typical fractional arrangement have far fewer owners, typically thirteen at most. This has a number of advantages, all of which may translate into better resale rates and appreciation potential.

Appreciation Potential

Fractional owners typically experience appreciation rates similar to that of the surrounding full ownership homes. It really creates an ideal scenario for a buyer when you stop and think about it. In other words, fractional buyers can purchase an expensive vacation home for less than the full amount but still participate in approximately the same rates of appreciation. As most vacation home buyers will tell you, appreciation is one of the main reasons they purchase a second home instead of renting.

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