Many people are turning to a relatively new concept in second home ownership. No it’s not timeshares. It’s called fractional home ownership. The best way to define fractional ownership is that it is a middle ground solution between sole ownership and timeshares where owners own shares in a piece of real estate.
Fractional ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.
With fractional home ownership you are partnering with other families to purchase a home. These partnerships are divided into shares. For, example if you by a 1/2 share in a property all the way down to a 1/13 share in the property.
In a 1/13 ownership situation, you as the owner get 4 weeks of usage per year, or 1 week of usage each season. Other attractive options include ownership shares. In this scenario, the owner has 1 week of usage each month.
Many fractional ownership homes are located in private communities with 24 hour security patrol services. Many also have private amenities like pools, spas, docks, etc. Some fractional ownership condos and town homes share amenities with other owners in the building.
The management generally handled by a property management office. A homeowners association is formed and the association fees are divided among the owners. These fees then help pay for things like utilities, insurance, taxes and maintenance.
There are several attractive reasons to buy fractional ownership in a property. Even if the owners could afford to buy the property straight out, fractional ownership provides the opportunity to truly vacation without all the responsibilities and expenses that come with being full owners. In additional you still own a share of a deeded property that will continue to increase in value.
Final Comments
Fractional ownership may not be right for everyone, but does provide more options for vacationers who are looking for affordable options for ownership.