Fractional Home Ownership Provides Choices In Second Home Ownership
Jul 31, 2009 Real Estate
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A lot of people are seeking more options for owning a vacation home. Fractional home ownership provides a somewhat new concept that is a cross between sole ownership and timeshares. The middle ground allows owners to own a deeded share in a vacation home.
Fractional ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.
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 13 shares. In other words you have to 1/13 ownership in the home.
For example, if a lake home is divided in the 13 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.
Most fractional ownership homes are situated in resort areas with private gates and private security services. Many of the homes have several amenities such as pools and spas. Some communities provide fractional ownership with condos and townhouses where the owners will share the amenities with other owners that may be vacationing at the same time.
Fractional ownership homes will have a homeowners association formed. The owners then pay HOA fees to a property management firm that is contracted to ensure the property is cared for and things like the utilities, insurance, taxes and maintenance are paid.
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.
Closing Comments
If you are thinking of buying a vacation home, maybe fractional ownership is a way you can get into a property that you otherwise may not have been able to afford.
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