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 home ownership is similar to timeshares, but its differences make them standout. In a timeshare, the owner is purchasing a block of time that can be used annually at the resort. This block of time, generally 2 weeks, can be traded with other timeshare owners for vacationing at other resorts inside the group.
In fractional ownership you are entering into a partnership with other owners where you share the cost of owning and maintaining the home the partners. In essence, you are buying a “divided piece” of real property that can range from 2 pieces to- pieces.
If you buy a 1/13 share in a fractional home, you are buying 1 week a season, 4 times a year. The most popular fractional ownership shares are 1/4. Under a ownership, the buyer gets to use the property 1 week a month during the year.
Resort towns and communities feature fractional ownership homes inside gated communities with twenty four hour security. Entrance to the community requires a gate pass that would have to be obtained from the guard house. Most homes offer pools and spas among their amenities. Condos or town homes fractional ownerships usually share amenities.
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
If you are thinking of buying a vacation home, maybe fractional ownership is a way you can get into a property that you otherwise may not have been able to afford.
Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Lake Homes in the US and Canada. Find Illinios Lake Homes.
