Vacation Ownership 101: Fractional Ownership 101
Own a piece of your paradise
You’ve found the place you love; now you can make it your vacation home. Fractional ownership is the opportunity to buy a percentage of a property at a fraction of the cost. Each fraction is individually deeded, and each owner is given a set amount of time to spend in their unit each year, usually between 1 and 3 months. Enjoy high-end furnishings and many premium services and amenities. Most locations offer golf perks, pre-arrival services, transportation services and discounted ski tickets to ensure your vacation is relaxing or active as you want it to be each and every time you are there.
The ins and outs of ownership
One word highlights the difference between timeshare and fractional ownership: control. Once you have fractional ownership you are a deeded owner. Because you are an owner, you build equity. And if the property appreciates in value, so does your share. Tailored to the affluent consumer, fractional ownership is a more luxurious option than traditional timeshare, and the cost — starting at around $60,000 and topping out at around $650,000—reflects that. There may also be annual fees ranging from $900 to $10,500.
Hassle free ownership
Fractional ownership is ideal for the those who want more time in their favorite place whether it be a ski, beach, golf, urban or wine destination. Your property will be appointed with high-end furnishings ready for you to enjoy with family and friends year round. Administrative and maintenance upkeep are placed in the hands of the Home Owners’ Association or property management so that you don’t have to worry about utilities and housekeeping. The time you spend at your property can vary between rotating calendar, rotating priority, set calendar and combination plans. Occupancy plans rely on the floating units model, which is where you buy access to a pool of identical residences.
Available in a variety of tiers based on the location, quality and level of services provided, fractional ownership falls into three categories: traditional fractional interest, high-end fractional interest, and private residence clubs. Traditional fractional interests include properties selling for less that $500 per square foot and are considered average quality in regional resort areas. High-end fractional interests sell from $500 to $999 per square feet in a more desired location with lower density, larger units decorated with high quality furnishings and higher quality servicing/amenities. Private Residence Clubs (PRC) sell for over $1,000 per square foot and represent the pinnacle of quality. The ability to exchange, allowing you to visit another destination within the same network, is increasingly popular.
With concierge servicing and on-site amenities, you can escape to your piece of paradise without any concerns. Like a second home, you can expect a full kitchen, spacious bedrooms, and comfortable well-made furnishings. Two bedroom units are the most common layout, but a complete range from studios to 4+bedrooms are available. Features typically include access to health clubs, spa facilities, swimming pools, whirlpools, and restaurants. Many properties even provide year-round storage so you can pack lighter and travel more easily.