Fractional 101

Fractionals101      

Fractional Ownership Overview

What is a fractional?

Owning a second home is great in theory. Trouble is, you may not be able to spend enough time at your vacation house to justify the cost - namely the mortgage and maintenance cost.

Enter fractional ownership or sometimes referred to as "fractionals", which allow you to buy a share of a multi million house or condominium in a prime vacation spot and have at your disposal a full staff of valets, concierges and housekeepers. Some high-end fractional resorts are referred to as "private residence clubs".

What are the benefits of fractional ownership?

There are five primary benefits:

Better Value - Fractional ownership essentially lowers the cost of access. Why buy a $3 million beach front estate that you use a couple weeks a year, when for $500,000 or so you can own a piece of that estate and have all the use that you desire. Instead of paying 100% for an asset you use 10% of the time, fractional ownership matches cost with use. Fractional ownership significantly reduces the financial burden of vacation home ownership through shared ownership.

Abundant and Flexible Use - A house or condominium at a fractional is usually divvied up among 12 owners or less, which ensures that all owners have access to the peak seasons. Most fractionals guarantee at least 4 to 6 weeks of access with unlimited use on a space available basis.

No Hassles - Many potential second home owners overestimate the time they will spend at their second home and underestimate the hassles associated with maintaining that second home. With fractional ownership, there's no need to worry about getting a phone call in the middle of the night from the property management company. Each home is professional managed and provides for a hassle free ownership experience.