The vacation and hospitality industry has evolved with the needs of its vacationers over the years, and that has allowed different types of vacation ownership opportunities to be created and utilized all over the world. All of these changes lead to an impressive and competitive market, but it can be difficult to know which ownership is the right choice for your vacationing needs. If you’ve been wondering, “Is fractional ownership a good investment for my family?” here are all the most important pros and cons you’ll want to consider:
Fractional ownership is often described as a luxurious vacation ownership opportunity, but also different from the traditional timeshare ownerships we often think of.
With a more traditional timeshare, owners are purchasing their right to a unit’s time each year, which is most commonly one or two weeks. Depending on the resort and timeshare brand, there could be dozens or hundreds of owners assigned to similar units which results in owners having a fixed week to visit each year, a floating week where they can choose between a few select dates, or a point-based system where their ownership allots them a specific amount of points based on the value of their ownership to book their vacations.
Fractional vacation ownership provides its investors with a shared ownership of the title to the actual real estate/unit. Fractionals are split between fewer owners (typically six to 12), which allows its owners to vacation more times throughout the year. Depending on how many shares are available for purchase, you could have anywhere from four to 24 weeks of vacation time available annually.
In a fractional ownership resort club, owners will enjoy all of the incredible on-site amenities their property has to offer and the benefits of ownership based on the specific brand they purchase from. Ritz Carlton Club Residences and Four Seasons Residence Club are two of the most widely known resort fractional ownership opportunities and are loved for being some of the most desired and high-end vacation brands, but there are plenty of other fractional ownership resort clubs to choose from.
Like with any purchase, fractional ownerships have their own positive and negative attributions and understanding these qualities is essential in figuring out which vacation ownership is the right choice for you!
With multiple weeks to visit throughout the year, you’ll rarely, if ever, feel restricted by the weeks you can travel to your fractional. In years where traveling multiple times isn’t possible, you can rent out your fractional on the secondary market.
Fractional ownerships are designed with luxury and attention to detail in mind, and that extends from the accommodations all the way to the property amenities. Spacious suites and villas with high-end finishes and lavish updates are standard, often with distinct additions like butler services, personal liaisons, flexible check-in times, and in-room dining with gourmet chefs. The properties often include impressive, upgraded features like multiple swimming pools, multiple dining options, full-service spas, unique excursions and concierge services, direct access to beaches, ski-in/ski-out abilities, and so much more.
Going hand-in-hand with the quality of the resorts, the properties themselves are located in some of the most sought-after destinations around the world. Costa Rica, St. Thomas, Hawaii, Colorado, Singapore, San Francisco, New York City, Bermuda, Bali, and Mexico are just a few many incredible places you could potentially visit.
Though many resort fractional ownership brands allow for internal exchange, external exchange programs open up travel options even further. For a small fee, you can join qualifying programs like RCI and Interval International where many fractional ownerships have some of the highest trading power available, meaning that you can vacation across the globe at some of the finest resorts in each program’s respective inventories.
Unlike a personal vacation home, resort fractional ownerships make it possible to enjoy many of the aspects of vacation ownership without the same level of responsibility as homeownership. Scheduled maintenance and other property upkeep will be completed by the team at the resort and the cost is split between all residents, which eliminates many of the stresses associated with individually owned properties.
Most timeshare brands and resorts lose value over time, but some fractional ownerships have been shown to hold more value on the resale market. So, not only could you enjoy years of great vacations, but you have the potential to sell it for a profit in the future.
Due to the quality of vacation and amount of vacation time allotted each year, the overall cost and maintenance fees of a fractional ownership are higher than those you would find with a traditional timeshare.
Not all banks provide mortgages for fractional ownerships. If you hoped to finance your ownership with a mortgage, it might require some additional work and help from financial professionals to find the right solution for you.
It’s never been easier to find the perfect fractional ownership for your family than on SellMyTimeshareNow.com. Filter our fractional inventory by price, unit size, resort, brand, and so much more to narrow in on your specific needs and guarantee an amazing getaway multiple times each year!