WHAT IS FRACTIONAL OWNERSHIP?
Fractional Real Estate ownership primarily involves vacationing in the same place each year.
Participants in fractional ownership purchase a fraction of the year with a proportional, one-time membership and annual maintenance fee.
A fractional use plan determines when and how owners can enjoy a resort.
Most fractionals limit the number of consecutive weeks of use and dictate how far in advance owners can reserve.
With some fractionals, owners’ weeks float, they’re not guaranteed the same weeks every year, and they typically don’t stay in the same unit each visit.
Limitations of Fractional Real Estate
- Limited use, access and number of locations
- Condo-oriented properties restrict travel for larger families & groups
- Resort/hotel setting is not as private or intimate as those offered by Destination Club Residences
- Monotony of having to vacation at the same property and residence for weeks or months
- Exchange program availability is not guaranteed
source: Forbes Traveler.com
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