What is a Fractional Timeshare?

What is a Fractional Timeshare?

Are you considering investing in a second home or vacation property and want to know more about fractional ownership? Is it the same thing as a traditional timeshare? Fractional ownership and traditional timeshares are both based on shared ownership models for a vacation home, but let’s cover some of the major distinctions between fractional ownership and traditional timeshares so you can decide which type of investment is right for you and your family.

How much time you get to spend per year

A big difference between fractional ownership and traditional timeshares is that you get to spend much more time per year at the vacation property with fractional ownership. Traditional timeshare units have up to fifty-two owners where each owner gets just one week a year at the property. In comparison, fractional properties only have four to sixteen owners per unit, so you can spend between three to twelve weeks per year at your investment property. This is a major difference if you want more time to relax and enjoy your vacation home each year.

Wear and Tear

If you are concerned about keeping your investment property in great condition since you are sharing it with other owners, be aware it is much harder to maintain a traditional timeshare unit. Since there are up to fifty-two owners per unit, the traditional timeshares have more of a hotel feel and will wear out much faster. With fractional ownership, there are less owners involved and more loyalty to their property so owners generally work harder to make sure their investment stays in the same condition they found it in.

Second Home

If you truly want a vacation property that has a second home feel instead of a colder, less cozy experience, fractional property ownership may be for you. You will have more relaxed vacations as you get to enjoy the property for longer periods of time and you will also get to know the staff better. It is a nice feeling when crew members greet you by name each time you visit your investment property.  It is next to impossible to get to know staff members when you invest in a traditional timeshare due to the fact that there are so many owners and you only get to spend a week or two each year at the property. Certainly not enough time to get familiar with staff.  If you are interested in a more intimate and exclusive environment, fractional properties would be a better fit for you.

Better Amenities & Service

Fractional properties are usually better constructed and include superior, higher end furnishings compared to traditional timeshares. You will likely have access to better amenities and services in the resort or property, and even the location within the resort is high caliber.  Now the question is, can you afford fractional ownership? The required minimum income is $150,000 USD per year versus $75,000 USD per year for timeshare ownership. Due to the difference in clientele, fractional owners can expect more personalized service and attention to detail in all areas related to their fractional property.

In conclusion, there are many notable differences between traditional timeshare ownership and fractional ownership. Are you considering investing in a fractional property or is traditional timeshare more your speed?

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