Fractional Home Ownership Offers New Option In Second Home Ownership

Written by Hubert Miles

Friday, 04 December 2009 15:00

by HubertMiles

Many people are turning to a relatively new concept in second home ownership. No it's not timeshares. It's called fractional home ownership. The best way to define fractional ownership is that it is a middle ground solution between sole ownership and timeshares where owners own shares in a piece of real estate.

Fractional home ownership is similar too but also vastly different from timeshares. With a timeshare, the buyer purchases a 1 or 2 week block of usage in a resort property. You can also trade your time at your resort for time at another resort within the network.

With fractional home ownership you are partnering with other families to purchase a home. These partnerships are divided into shares. For, example if you by a 1/2 share in a property all the way down to a 1/13 share in the property.

For example, if a lake home is divided in the- deeded pieces, each buyer would get to use the lake home 1 week a season for a total of 4 weeks a year. Other popular options are properties divided into 4 pieces where each owner gets to use the home 1 week a month and only share expenses with four other owners.

Many fractional ownership homes are located in private communities with 24 hour security patrol services. Many also have private amenities like pools, spas, docks, etc. Some fractional ownership condos and town homes share amenities with other owners in the building.

Fractional ownership homes will have a homeowners association formed. The owners then pay HOA fees to a property management firm that is contracted to ensure the property is cared for and things like the utilities, insurance, taxes and maintenance are paid.

Many owners of fractional homes say that they choose this route as a means of owning a vacation property that they did not have to care for. They remained in an ownership position in a property that continues to appreciate.

Closing Comments

So when considering purchasing a vacation home, consider the benefits of buying a fractional home. It may be just what you have been looking for in a vacation home.

About the Author:

Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Lake Home in the US and Canada. Find South Carolina Lake Homes For Sale.