Do you like the idea of owning a vacation home in your favorite location, but don’t want the burden and cost of repairs and upkeep? Do you love the services of a luxury hotel but dislike living out of your suitcase? You’re not alone. A new breed of vacation home ownership, called “fractional ownership,” is becoming increasingly popular with busy professionals looking to maximize their family vacation time.

First class living

Fractional resorts are real estate developments in prime resort locations on the golf course, ski slope or ocean. They provide the amenities of a luxury home, such as granite kitchen countertops, whirlpool baths and roomy closets — combined with the benefits of a first-class hotel, such as concierge, housekeeping and grocery shopping services.

Fractional, But Not Timeshare

Luxury fractionals differ greatly from the old-style timeshares. The primary differences are that fractionals offer:

• Deeded property, with the same rights as any other real estate 

  purchase

• Greater chance of property appreciation

• A longer amount of time on property (from 4-13 weeks)

• A luxury level of furnishings, services and amenities

Of course, all of the above perks add up to another major difference: price. The cost of fractional property is quite a bit higher than that of a typical timeshare, though still much less expensive than whole ownership of a luxury home in the same location.

Shared Ownership

Fractional ownership and asset-sharing can be an ideal way to get the most out of your investment by purchasing only the shares or time you require from an asset. All other aspects are split, both the benefits and the costs, among a limited number of shareholders or members.

Fractional property offers the benefits of owning a holiday home without the associated hassle – and at a lower entry cost.  Most buyers own a fraction of the freehold of a property which entitles them to a number of weeks’ use. Maintenance costs are shared between buyers and many fractional developments now offer the opportunity to swap some of your allocated time through a fractional luxury exchange network.

No More Living Out of a Suitcase

In the past those who chose to vacation at resorts — because of the services and activities they provided to their family — sacrificed some comfort in a relatively cramped hotel room.

A great feature of most fractional properties is the spaciousness of the residences. With fully-equipped kitchens, large closets and lockers for year-round storage of sports equipment, you truly have all the comforts of home.

Service Sets Fractionals Apart

Personal service is an area where fractional properties clearly outshine traditional second-home ownership. When it comes right down to it, for most people today time is their most valuable commodity. Who wants to waste it cleaning, unpacking, grocery shopping and mowing the lawn?

There are a couple of drawbacks to not owning the whole home, of course. If you have a passion for interior decorating or enjoy taking unplanned, last-minute vacations, you may be unhappy with the limits of fractional ownership. However, fractional properties are one of the fastest-growing segments of the real estate industry, so there are clearly many who find the benefits far outweigh the drawbacks.

As one owner puts it, “My vacation starts the moment I arrive. We head straight to the restaurant for a bite to eat. When we get back to our residence, our refrigerator is fully stocked, our clothes are unpacked and our ski equipment has been pulled out of storage. There’s nothing left to do but have fun.”

Articles on Fractional Ownership from;

The Boston  Globe  Forbes Magazine  New York Times