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 too but also vastly different from timeshares. With a timeshare, the buyer purchases a 1 or 2 week block of usage in a resort property. You can also trade your time at your resort for time at another resort within 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.
Many owners of fractional homes say that they choose this route as a means of owning a vacation property that they did not have to care for. They remained in an ownership position in a property that continues to appreciate.
Final Comments
So when considering purchasing a vacation home, consider the benefits of buying a fractional home. It may be just what you have been looking for in a vacation home.
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