What is Fractional Ownership?
One of the many fast growing forms of vacation property ownership is Fractional Ownership. Also known as Private Residence Clubs, fractional ownership is often misunderstood as another time-share opportunity.
Fractional ownership is an actual, deeded interest you can sell it, leave it in your will, put it in a trust, almost anything you could do with a normal deeded property you can do with a fractional ownership property. The catch is that you only get to use it a fraction of the time, hence the name: Fractional Ownership. If you want to get the best fractional service then you can also look for: fractional cfo services.
Of course, there's no confusing fractional ownership with full ownership. You can't redecorate the living room or hang personal photos on the wall. What do you get when you purchase a Fractional Ownership?
Depending on the location and type of structure, owners may get a beautiful, high-quality property, located in a fantastic location. Property types include: Detached single family homes, hotel suites, cabins, townhouses, villas or an upscale Penthouse Condominium located in a tropical paradise.
With great services and amenities offering a carefree vacation lifestyle fractional ownership may typically be purchased for 10 or 15 percent of what someone would normally have to pay to buy the house on their own. The burden and cost of repairs and upkeep of buying and maintaining these properties is shared by all purchasers of the property. Homes, instead of sitting idle most of the time, are nearly always being used.
The amount of time you are actually allowed to use fractional ownership properties varies from property to property. Prices also vary widely and may range from $40,000 to more than $1 million, depending on the location, number of weeks, number of bedrooms and level of luxury.
Typically offering extensive amenities, ranging from a lavish clubhouse and spa to five-star hotel services that would not be available with wholly-owned vacation homes or timeshares, fractional ownership properties maybe an attractive trade-off for increasing numbers of vacationers. Additional amenities offered may include: airport pick-ups, spas, grocery restocking, restaurant reservations and more.
The ability to exchange weeks with other resorts and destinations is another amenity and is nothing new, an old concept from timeshares. However, for some fractional ownership properties, this concept has been improved on.
With allowable usage of four or more weeks some offer the ability to spend part of the time at a different property in another part of the country – or the world. Some fractional ownerships participate in an exchange program that gives owners the ability to reserve time with other properties that have a similar level of luxury and service.