Compare Fractional Ownership To Owning A Vacation Home Alone
The common sense of shared ownership is so elegant and obvious, it is puzzling that these arrangements are only now attracting the attention and popularity they deserve. Why incur all of the costs of owning something you will only use part of the time? Why not share the costs with other people who want to use the same thing? This simple logic is now being employed by buyers of many types of luxury items, from executive jets to fabulous yachts. But by far the most common use of fractional ownership today is the vacation home.
Statistics show that most people only use their vacation home 17-30 days each year. Fractionals are appealing because they allow people to own only the share of a vacation home that they will use, rather than the entire property.
Lower Acquisition Costs
Buying a fraction of a property means the buyer pays only a fraction of the cost of the entire property. In addition, the costs of renovating, furnishing and outfitting the property are shared. Although the per-share cost of fractionals packaged by a property owner or developer include a “markup” (on average the total share price will be 150-250% of the cost of the home and contents), they are still a good deal for most buyers because they avoid the time, effort and difficulty of outfitting the property, creating the legal structure and assembling the owner group.