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 home ownership is similar to timeshares, but its differences make them standout. In a timeshare, the owner is purchasing a block of time that can be used annually at the resort. This block of time, generally 2 weeks, can be traded with other timeshare owners for vacationing at other resorts inside the group.
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- shares. In other words you have to 1/13 ownership in the home.
For example, if a lake home is divided in the- deeded pieces, each buyer would get to use the lake home 1 week a season for a total of 4 weeks a year. Other popular options are properties divided into 4 pieces where each owner gets to use the home 1 week a month and only share expenses with four other owners.
Many fractional ownership homes are located in private communities with 24 hour security patrol services. Many also have private amenities like pools, spas, docks, etc. Some fractional ownership condos and town homes share amenities with other owners in the building.
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.
There are several attractive reasons to buy fractional ownership in a property. Even if the owners could afford to buy the property straight out, fractional ownership provides the opportunity to truly vacation without all the responsibilities and expenses that come with being full owners. In additional you still own a share of a deeded property that will continue to increase in value.
Final Comments
Fractional ownership may not be right for everyone, but does provide more options for vacationers who are looking for affordable options for ownership. - 33387
Fractional home ownership is similar to timeshares, but its differences make them standout. In a timeshare, the owner is purchasing a block of time that can be used annually at the resort. This block of time, generally 2 weeks, can be traded with other timeshare owners for vacationing at other resorts inside the group.
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- shares. In other words you have to 1/13 ownership in the home.
For example, if a lake home is divided in the- deeded pieces, each buyer would get to use the lake home 1 week a season for a total of 4 weeks a year. Other popular options are properties divided into 4 pieces where each owner gets to use the home 1 week a month and only share expenses with four other owners.
Many fractional ownership homes are located in private communities with 24 hour security patrol services. Many also have private amenities like pools, spas, docks, etc. Some fractional ownership condos and town homes share amenities with other owners in the building.
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.
There are several attractive reasons to buy fractional ownership in a property. Even if the owners could afford to buy the property straight out, fractional ownership provides the opportunity to truly vacation without all the responsibilities and expenses that come with being full owners. In additional you still own a share of a deeded property that will continue to increase in value.
Final Comments
Fractional ownership may not be right for everyone, but does provide more options for vacationers who are looking for affordable options for ownership. - 33387
About the Author:
Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Lake Homes in the US and Canada. Find Michigan Lake Homes.
