Fractional Home Ownership Provides New Option In Second Home Ownership
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 ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.
In fractional home ownership, homes are divided into deeded shares that can be brought and sold through real estate agents. The homes are divided into 2 to 13 shares. In other words you have to 1/13 ownership in the home.
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.
Most fractional ownership homes are situated in resort areas with private gates and private security services. Many of the homes have several amenities such as pools and spas. Some communities provide fractional ownership with condos and townhouses where the owners will share the amenities with other owners that may be vacationing at the same time.
The homes are maintained through a homeowners association or HOA run by a property management firm. The fees from the HOA are used to pay for utilities, insurance, taxes and maintenance on the home.
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.