For those enlightened few who actually understand Fractional Ownership and its benefits, this is for you. Straight and to the point.
In a nutshell…. the best Fractional Ownership opportunity is the one that makes the most sense for you. Not everything will suit everyone.
Some of the questions that need answering before you go house hunting are the following;
What are you looking for in Fractional?
What is your budget? (Are there payment terms? Financing?)
What is the resale market like? (If you need to sell for any reason)
Will you travel frequently to the Resort? (How large of a fraction do you need?)
What are the monthly costs? (Maintenance fees, etc.)
Do you need to receive rental income when you are not at your property to offset fees?
How many weeks does each fraction represent?
Are there any additional fees? (Get it in writing)
How are the weeks allocated? (Each ownership typically translates into weeks, how are they distributed?)
Do you want something close to home? Some people prefer to use the fractional like a “cottage” and drive up when time allows. Others prefer the jet set lifestyle and prefer the exotic destinations.
Price is obviously important, but value is even more so. Make sure the purchase fits around your lifestyle rather than the reverse. If you end up with a fractional you never use, then the purchase becomes a straight investment rather than a holiday option.
Typically a Fractional purchase should not be your first choice for a straight investment, however it should tie-in as a fun lifestyle choice, or a way to offset high holiday costs.
Most fractional groups will handle the rentals of the unit and will keep a portion of the rent for administration etc. Make sure you are aware of what that percentage is as well.
This article first appeared on www.sharedownershipblog.com, to read it in full, please click here:
