Fractional Ownership – Advantages For Owning Private Residence Clubs

Fractional ownership of a vacation home is the perfect way to own a second home. There are two major advantages involved: on one hand, you will pay a lot less than if you buy a vacation home, and, on the other hand, you will use it exactly when and for the time you need it to. This way, you have keys to your own private resort.

Five Star Amenities

Your private residence club will come along with a lot of amazing amenities, like a spa or a clubhouse, as well as five star hotel services. It is even better than buying your own vacation home, because at this house, everything is set for you before you arrive. Somebody takes you from the airport, takes care of your clothes, the cleaning, the reservations to restaurants and so on.

World Class Destinations

You can have fractional ownership of the most interesting and fun resorts around the world, located in luxurious, exotic destinations, like Virgin Islands or Puerto Vallarta. In the United States, you can choose from a large variety of ski resorts or golf oriented communities like Hilton Head Island, Florida or South Carolina. Jupiter, Aspen Highlands, Bachelor Gulch, Aspen Snowmass, Lake Tahoe and Whistler are just a few of the most popular fractionals you can find across the United States.

Professional Management

The main reasons for the international success of these fractionals depend on their professional management. Five star companies, like Ritz Carlton, Four Seasons, Starwood, Intrawest or Millennium, take care of the management at these resorts.

Worries Free

When you have a fractional ownership, you have to worry about nothing. The staff is there to serve you and you do not have to deal with problems like repairs, maintenance or housekeeping, that are included in the price you pay for the whole thing.

Be Prepared For Higher Rates

Fractional ownership becomes more and more popular. In this real estate business, you will not encounter the usual depreciation that happens with timeshares, for instance. Many people are interested in this opportunity and therefore, the prices are expected to increase.

What Are The Costs?

With the fractional ownership, you are required to pay a one time purchase price and, afterwards, an annual fee that covers all the expenses. In general, such a fractional ownership costs $100,000-$500,000. It may sound much, but a house like this usually costs up to two to five times more.

What Do The Fractionals Have And Timeshares Do Not?

Timeshares are, by far, less expensive than fractionals. But they also offer less. With a timeshare, you get to stay one week or two per year, while with a fractional ownership, you can spend between two and thirteen weeks, whenever you want, in the most exclusive resorts around the world. Also, you can make a loan to pay for a fractional, a thing that is much harder to do for a timeshare, because they tend to depreciate in time.

With timeshares, sales commissions may raise up to 40%-50%, because of the large number of resales and the appearance of new functions. On the other hand, with fractional ownership, the buyer gets more value for the dollar.

The number of fractionals will remain small, so they will appreciate more. The reason is that they are built only in the most exclusive locations, so the demand cannot be covered.

What About Condo Hotels?

The main difference between fractionals and condo hotels, is that you can place your condo – which is a condo located in a hotel – in the rental program. This never happens with fractional ownership.

What you get is also different. A fractional offers you three to five bedrooms, while condos have only one or two bedrooms. But condo hotels and fractional ownership complete each other on the market, as both are gaining more and more popularity. Most condo hotels are located in South Florida, while fractionals are located mostly on the West Coast, in ski resorts.

Frederic Haislip is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com

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