Do You Know About Fractional Real Estate Ownership?

In the past, if you wished to own a vacation home, you were forced to purchase the whole property. Currently, the fastest growing form of vacation home ownership is Fractional Real estate Ownership also recognized as Private Residence Clubs. Individuals occasionally confuse it with time-share opportunity where a contract allows you to use a property on certain weeks, which is not the case. At the moment the real estate industry has evolved to a point where you can slice and dice your vacation home into whatever amount of time you use it. By “fractional” ownership, means a shared-ownership concept whereby you buy a holiday home anywhere from a minimum of two weeks of annual use to a maximum of three months.

Purchasing weeks seems more like acquiring shares, but the truth is fractions are very different. In reality, it is similar to the past where relatives or friends would team up to purchase a resort property. The only distinction is momentary there is a management company which runs the show to minimize disparities over preservation on who gets to use the property when or who damaged what.

Upon purchase of a fractional real estate, you receive a deeded piece of real estate but not for the whole thing as compared to time-shares. A benefit of the fractional property is the almost limitless flexibility and also if the property is not being used by your colleague holders you have the right to use them even beyond your allotted time frame limit.

Indeed you cannot confuse full ownership and fractional real estate ownership, as it has some limits. You are not allowed to refurbish the living room or hang any private photos on the wall. So, what do you acquire when you buy a fractional real estate Ownership?


Subject to the site of the fractional property and the type of home, the owners can receive an attractive, best quality property, situated in a fabulous location. Fractional Ownership may be located in many vacation spots such as warm water tropical destinations, high-traffic ski resort or even golf-oriented communities. Fractional Real estate Ownership may include hotel suites, townhouses, and separate single family households, villas, cabins or even an expensive Penthouse situated in a breathtaking paradise.


In receipt of fantastic amenities and services received at the fractional ownership, it may be bought for 10 or 15 percent of what a single person would purchase alone. The maintenance cost and upkeep are shared equally by all fractional property owners. The acquisition cost varies depending on the location of the ownership, the level of luxury, number of bedrooms and the number of weeks. Prices range from $40,000 to more than $1 million then you pay a yearly maintenance fee that covers all other expenses related to the property.


Different from timeshares and wholly owned vacation homes, in fraction ownership you enjoy five-star services, spa, lavish clubhouse, restaurant reservations, grocery restocking, airport services, and much more. The maintenance is usually by well-known hospitality companies that offer first class accommodations.

You should shop tentatively; when buying as the owners depend more on property managers and operators for their property upkeep than when purchasing their own house. For the rapid anticipate-able future, Fractional Real Estate Ownership is here to stay!