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 Fractional ownership has become a hugely popular way for families to own vacation property in their favorite luxurious destinations while only paying a portion of the cost of a residence. Distancing itself from the pitfalls and scandals of timeshares, fractional ownership is fundamentally different in that clients are actually part owners of a property, with the deed to prove it.
Purchase of a fractional ownership property is divided among several members, generally from 2 to 12 buyer/investers. All owners have deed to the property and, additionally, share the time that they spend at the residence. These time agreements vary with each fractional ownership contract, but the trend has been towards fewer owners that each spend up to a month on the vacation property.
Fractional Ownership Booms in Popularity
On the snowy slopes of Aspen, Colorado, fractional ownership got its start as developers marketed the idea of selling a high-end property but to several buyers at once. This also included access to five-star hotel services and other luxurious perks. The venture was an instant success. Now a buyer could holiday at a rich tycoon’s condominium but for eighth of the price. The upper-middle classes had suddenly found a way to taste the trappings of the super rich but within their own budget.
This appeal to luxury and ease is a main attraction for buyers interested in fractional ownership, therefore it is becoming very common to find high-class level of furnishings, services and amenities in fractional ownership properties. Addtionally, fractional ownership has the added benefits of greater property appreciation, longer vacation times in residence, and the ability to sell, bequeth or exchange time at the property or the deed of the property itself.
Another major benefit of fractional ownership is that you never have to worry about repairs, maintenance or housekeeping. Everything is included in the price and/or annual fees and management is often taken care of by a professional management company.
Fractional Ownership in Mexico
In the Yucatan, hot-spots such as Playa del Carmen, Puerto Morelos and Cancun are being targeted by developers offering the best of fractional ownership in world-class tourist destinations. On the west coast of Mexico, fractional ownership at luxury areas such as Punta Mita, Costa Alegre and the Riviera Nayarit are being snapped up by wealthy and upper-class Americans who want to enjoy five-star service in a prime beach environment.
Fractional ownership deals in Mexico have shown rapid appreciation over the last few years, making it an attractive option to foreign real estate investors. Market experts say that the industry is set to grow even further with a host of new developments sprouting up around the country in the next five years.
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