Fractional Ownership

To explain how fractional ownership with property works in a few sentences the dreaded 'timeshare' word may sneak in, and set alarm bells ringing in potential investors, and although it would be imprudent to dismiss that they do actually share a common focus on desirable leisure destinations, it is important that prospective purchasers see the crucial difference between the two.

Fractional property, or co-ownership allows a limited number of stakeholders access to a private, high-class residence or apartment for a set period of time each year at a cost far lower than outright purchase. It is a great trade-off. Owners get a beautiful, high-quality house, in a fantastic location, with great services and amenities and a carefree vacation lifestyle for 10 percent or 15 percent of what they would have to pay to buy the house on their own. The costs of buying and running these often expensive properties is shared by a number of people and the homes, instead of sitting idle most of the time, are nearly always being used.

Furthermore, fractional ownership is a real property ownership right rather than just a usage right as with timeshares. In short this means that if the property price increases then you reap the benefit and at the present time secondary home values are approaching those of primary properties.
Fractional Ownership simply means the division of an asset into shares. If the “asset” is a property, the title or deed can be legally divided into shares. Those shares can then be purchased and owned by more than one individual. Shared ownership of the property and its deed will also entitle shareholders to certain usage rights, usually in the form of weeks.

Fractional Ownership is not the same as Timeshare. It affords much of the freedom and usage benefits offered in timeshare, however, the fundamental difference with fractional ownership is that the purchaser owns part of the title (as opposed to units of "time").
Therefore, if the property appreciates in value, so do the shares. As is the case with whole ownership, fractional owners can sell whenever they deem necessary or prudent, releasing the capital growth from their investment.

Fractional ownership and asset-sharing gives you an ideal way to get the most out of your investment by purchasing only the shares or time you require from an asset. All other aspects are split - both the benefits and the costs, amongst a limited number of Shareholders or Members. Fractional ownership means you physically own a percentage of the asset until you decide to sell.

Fractional ownership within the property sector is booming at present. Simply because so many people would like holiday homes, but don't want the hassle and expense of owning a place they can only use a few weeks at a given time. However, they do want the value, equity and other benefits associated with property ownership. This is where fractional ownership comes in. Like timeshare, you are entitled to stay at an apartment or town house for an agreed period every year. But unlike timeshare, with fractional ownership you own a freehold share in the property.