What is Fractional Ownership?

Fractional vacation homes are real estate developments on golf courses, ski slopes, beaches or in sought after urban locations which provide all the amenities of luxury homes combined with the benefits of first class hotel operators such as reservations, concierge, housekeeping, grocery shopping services, maintenance and refurbishments.

Cost effectiveness

Fractional ownership can be defined as the collective ownership of an asset, usually one with a high monetary value. Owners typically purchase a share in a residence, usually between 1/4 share to 1/13 share giving you a certain number of weeks per year at the property. By only paying for the time you use, fractional ownership is a more cost effective way to stay in desirable locations like, for example, London, Dubai, Cape Town or Tuscany.

Legally an Asset

Legally, fractional ownership is no different to other forms of shared ownership, such as syndications or timeshare. With most timeshare you pay for the usage right over a specific time during the year but you do not own the property, directly or even indirectly. It is therefore not always considered an asset, whereas under fractional ownership it is. Timeshare is normally cheaper than fractional ownership

Categories Of Fractional Ownership

There are three categories of fractional ownership:
Syndication Model or Classic Fractions
High-end Fractional
Private Residence Clubs

Generic Benefits Of Fractional Ownership

Fractional ownership of property is the joint ownership of a luxury property, through an accepted legal structure, where you have a usage agreement determining how often you are entitled to its use and where all the supporting services are supplied on your behalf. The upkeep costs are shared between the shareholders.
It’s a way of obtaining perpetual access to an exclusive vacation property.
Its property ownership and your share are underpinned with real property value.
You only pay for the portion or fraction you own and use and are not exposed to excessive
Upkeep and maintenance costs.
The hospitality, finance, rental and maintenance management is done on your behalf giving you the real enjoyment of a holiday home without the hassles.
Time is allocated and shared on a roster system, so you know years in advance when it’s your time to take a break – a great way of ensuring structured relaxation.
Fractional ownership is a way of getting access to otherwise unaffordable destinations.
When no longer used, fractional ownership can be traded. You can sell your share with the greatest of ease through recognised promoters.

Additional features of high-end fractional

A central reservation system servicing the members.
Flexibility in terms of usage any time of the year subject to availability.
An Operator supplying basic services such as housekeeping and laundry.
Often features multiple locations within one country.
An International Exchange facility.