I like fractional share ownership. More so than I do condohotels, which I wrote about, yesterday.
Basically, you just buy a share of a condo – you partially OWN a single unit, you aren’t renting it or buying into a bunch of condos, like in a timeshare.
You can live in the home for a specific number of days per year, and, if there are leftover days after everyone else has picked out when they’re staying, you can take extra days for yourself (not sure if you pay extra).
You have to pay maintenance fees for the common areas, of course, and usually the interiors of all the units come with the same, standard package.
I think, in almost all cases, when you visit you stay in the same, exact unit, although I believe there are some condo complexes where you end up staying wherever there is an opening.
It’s a bit weird – you share ownership, so you basically share living quarters with other people, even though (of course) they aren’t there when you’re there, so you’re sleeping on a bed that someone else has been sleeping on, etc. But, that’s what you do in a hotel, too, right?
The Ritz-Carlton has a fractional share program, with developments in Jupiter, Florida, Colorado, and St. Thomas, among others. You end up with an eighth-share of a condo, and the Ritz takes care of maintaining the unit when you’re not there. Again, it’s not a condohotel, you aren’t renting out the unit to anyone, although these type of condo developments are often built right next to hotels.
Fractional ownership is where individuals purchase a portion or share of an expensive asset that they otherwise may not be able to afford on their own. The buyers share the cost of the asset and, in some cases, they also share the costs of maintenance, fees, taxes and management costs for the asset.
Seeking the Luxury Lifestyle. For people who have only dreamed about being able to afford â€” and indulge â€” in luxury items in the past, shared ownership is a way for them to have their proverbial cake and eat it, too.
While fractional ownership has traditionally been used to describe condo and resort timeshares, it is now taking on a new life in the purchase of vacation homes as well as some extraordinary items, from private jets to yachts to cars.
Weighing the Benefits. There are several advantages to fractional ownership.
Continue reading: Enjoy the luxury of fractional ownership – By Marcie Behman, The Boston Herald