ABOUT FRACTIONAL OWNERSHIP

The niche was created in response to a desire for more use of an upscale vacation property than is offered by timeshare, but without the cost and responsibilities of a wholly-owned second home, fractional interests in luxury apartments is one of the fastest growing trends in a challenged Real Estate market.

The luxury fractional home buyer can often times afford a wholly owned vacation home, but may have difficulty justifying the investment due to infrequent use. The fractional buyer wants extensive amenities (near a beach, golf course or ski resort, a fitness centre, club room, barbeque area, luxurious pool, Jacuzzi, landscape gardens, bikes, kayaks, laundry facilities and hotel services (daily maid service, on-site maintenance and management) that are usually not available with wholly owned homes or apartments. The fractional buyer is often a repeat visitor to the resort area in which the property is located, often visiting more than once per year. Many high end fractional ownership resorts have arrangements for reciprocating trading privileges among their owners for like kind facilities at other locations and
exclusive resorts

It is also a sector that is experiencing strong demand from buyers who found it difficult to get into the second home abroad market because of financial constraints and people looking for an income often rent their fraction any time they are not using it to friends and/or family. If you have bought in a resort hotel, there is often a rental pool which will guarantee you 60-70% of the rental income. With 5 star properties commanding daily rental rates averaging $200-400 depending on the season, it is not difficult to see the advantages of owning a fractional ownership property over a full ownership holiday/second home.