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Fractional ownership refers to a method in which shareholders share the ownership of a property. Here, you will split the costs (thereby avoiding a huge liability) and have access to the property for a predetermined period every year, so you can live and travel comfortably with your family and friends. Depending on the circumstances, you should have access to resorts and homes all around the world, besides the said property.
How Does Fractional Ownership Work?
When making a fractional property investment, the buying price depends on the number or shares or days. For example, most fractional properties divide the shares into 6–8-week blocks. Rather than buying a house worth $100,000 on a tropical island, you can actually own one worth $1,000,000 for 10%. The owners will split the cost of the home and the maintenance costs too.
You have to pay the one-time purchase price and a yearly maintenance fee. With the recent recession, a lot of property owners have discovered that fractional ownership is the right way to own a holiday home. You can finally own that luxury property you have always admired for a fraction of the price and enjoy it for a predetermined period of time.
Amazing Locations
With a fractional property, you can enjoy beautiful views anywhere in the world. You should be able to find fractional properties in numerous world-class resorts and exclusive destinations in Mexico and the Caribbean. In the U.S fractional properties became available in some of the major ski states such as Colorado.
Since most of the properties near the ski resorts in these towns are exceptionally expensive, they instantly became ideal places for fractional ownership. Later on, a lot of fractional properties were also popular in beach communities and golf-oriented communities.
Does The Fractional Property Appreciate In Value?
If you want to invest in the future and your family, you should definitely think about fractional property ownership. By having fractional ownership in single-family residences, you can count on a huge opportunity of increasing in value. That’s because future buyers may want to purchase the home as their primary home.
Note that, most vacation funds are mostly started by single-family residences for their investors. Investing in a fractional property in a resort might not appreciate in value since the property depreciates with age thereby becoming less attractive as a vacation destination.
Investing in Your Lifestyle
Real estate developers know that people who are looking for whole ownership in properties are always interested in appreciation. Fractional developers also know this but will always offer a little more to the value. Fractional shares are usually sold as an investment in your lifestyle. With fractional ownership, you will spend a lot of time living in luxury accommodations because there are fewer owners compared to timeshares. So, though you don’t own the property you get a far better deal than with a timeshare. In a lot of ways it’s better than sale or rental.
You should be able to experience the finer things in life without an expensive budget. Fractional properties will give you a more relaxed and unforgettable vacation experience. There is less hustle for vacationers when arriving or departing because the management and staff present will take care of all the necessary details. Fractional owners will have access to top-notch accommodation in the best locations globally.
Also, there will be staff available to attend to their needs whether shopping, housekeeping or concierge services. There are abundant 5-star amenities that are exclusive and extravagant.
Bequeathing Ownership To Your Children
One of the main benefits of fractional ownership will be the memories and investments you make into your family. By investing in fractional properties, you should expect some type of monetary return. However, you should be able to share some quality times with friends and family. Even better, you can bequeath the ownership to your children so the property will always be part of the family for generations to come.
Professional Management
Most fractional properties are operated by renowned hospitality companies that are reputable for providing 5-star services in exclusive resorts.
Return On Your Investment
The return on investment can’t be defined by money only. With fractional ownership, you can enjoy the benefits of a luxury resort without the costs of maintaining a second home. You should be able to enjoy more space and amenities as well as more access compared to timeshares. Don’t forget that the property can stay in the family forever when you bequeath it to your children.
