what does fractional mean?

Asked by John Rapacki, Port Arthur, TX Sun May 12, 2013

This question was asked from http://www.trulia.com/property/3077034086-10-Harbor-Blvd-E80…

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8
mrphillipsmx, Both Buyer And Seller, Mexico, MO
Wed May 21, 2014
Hello John,

The fractional ownership concept is very similar to co-ownership, but when it comes within a vacation project, now there are Private Residence Clubs that create a real estate product that can be customized to the convenience of the buyer.

Starting with the possibility of only buying 30 days of a year you get a deed for life, which you can inherit, rent, sale or even in some cases trade for other places in the world. This is not time share because unlike a right of use, you actually own the property and are part of the Home Owners Association.

It is a hassle free vacation lifestyle where you can forget about normal second home chores like, utility bills, renters damage, maintenance, change of appliances and furniture, renting your vacation home while you are not using it, etc.
Instead you can use your time to enjoy the location you chose to vacation.

I recommend http://www.experienceportobello.com it is a wonderful concept and is the easiest way to own a vacation home in Paradise Mexican Caribbean.
0 votes
Samantha Fre…, Home Buyer, Washington, DC
Mon Apr 28, 2014
It means that you get to share the property with several parties
0 votes
Peter Mohyls…, Agent, Destin, FL
Mon Jun 17, 2013
Are you still looking for a three bed, three bath condo? The market has changed slightly since you first asked your question. The inventory is still low. rentals are very hot now. The estimate is above 95% occupancy for the rest of the summer.
0 votes
clarkside4, Home Buyer, Destin, FL
Thu May 30, 2013
I am not looking for fractional ownership. Any suggestions for 3bdrm/3bath condo
0 votes
John Karpowi…, Agent, Niceville, FL
Mon May 13, 2013
Hi John,

Below is some information I have for you on this question.

Let me know if you have any other questions....

John Karpowich


Fractional Ownership. This means you are buying ownership for only part of the year. If this type of ownership is not what you are looking for, I would be happy to send you our Emerald Coast MLS listings of what you are looking for. The following information on Fractional Ownership is for you in case it is.

Fractional ownership is an arrangement where a group of individuals or families co-own and share use of a vacation home or condo. Sometimes these arrangements are organized by the users themselves, but more frequently they are set up by a property owner or developer who outfits the property, creates the legal structure and documents, then offers the fractional interests for sale. Contrary to what you might think, groups of complete strangers who come together through these packaged offerings are generally much more successful at co-owning and managing the shared property than groups of friends or family members.

Statistics show that most people only use their vacation home 17-30 days each year. Fractional are appealing because they allow people to own only the share of a vacation home that they will use, rather than the entire property. The main benefits of fractional ownership are:
•
Lower Acquisition Costs: Buying a fraction of a property means the buyer pays only a fraction of the cost of the entire property. In addition, the costs of renovating, furnishing and outfitting the property are shared by the owner group. Although the per-share cost of fractional packaged by a property owner or developer include a “markup” (on average the total share price will be 150-250% of the cost of the home and contents), they are still a good deal for most buyers because they avoid the time, effort and difficulty of outfitting the property, creating the legal structure and assembling the owner group.

•
Lower Operating Costs: Owning real estate involves ongoing operating costs such as property tax, insurance, utilities, and maintenance, including the cost of repairing and replacing the furniture and other household goods inside. Maintaining a vacation home can be particularly complex because of intermittent usage and the distance between the owner and the property, often requiring the assistance of a local manager or management company. Sharing the cost and efforts of operating dramatically lightens all these burdens.

•
Eliminate or Diminish Need for Rental Tenants: Most vacation home owners face the unpleasant decision between leaving the property vacant when it is not being used by the owner, or renting it out. As anyone who has been involved in vacation rental knows, the rental option has significant downsides. Do it yourself, and you spend innumerable hours promoting the rentals, responding to inquiries, handling bookings, checking tenants in and out, and readying the property between tenants. Hire a manager or rental agency and you will generally give up 30-50% of the rent. Either way, the tenants extract a significant toll on the property, and the rental periods most demand are the same ones when you would prefer to use the home yourself. While some fractionals allow owners to rent out their home when they are unable to use it, the lower cost of buying and owning a fractional means that most owners do not need to use this option.

•
Diversification of Investment and Destination: Fractional ownership allows the money that would have been needed to own and operate a single vacation home to be spread over two or three vacation homes. Spreading your dollars over several homes lowers investment risk and increases the likelihood of profit by exposing you to two or three different real estate markets. Moreover, owning vacation homes in several locations gives you more vacation options each year, while still allowing you to spend your time in your own homes where you are comfortable with the surroundings and know how everything works.

The benefits of fractional ownership are so compelling that many people who could easily afford their own place are opting for fraction ownership instead. Perhaps even more surprising, many people who already own a vacation home are choosing to sell some fractional interests in it in order to lighten their cost and management load and still use the property just as often as they ever did.
LEARN MORE

For more information about the various types of fractional vacation property, and how to compare a timeshare to a private residence club, destination club, vacation club and other types of fractional, shared and co-ownership of vacation residences, see:

http://www.sirkinfractionallawyers.com/short_format/fraction…
0 votes
I am not looking for fractional ownership. Any suggestions for 3 bdrm/3bath condo
Flag Thu May 30, 2013
John Karpowi…, Agent, Niceville, FL
Mon May 13, 2013
Hi John,

Below is some information I have for you on this question.

Let me know if you have any other questions....

John Karpowich


Fractional Ownership. This means you are buying ownership for only part of the year. If this type of ownership is not what you are looking for, I would be happy to send you our Emerald Coast MLS listings of what you are looking for. The following information on Fractional Ownership is for you in case it is.

Fractional ownership is an arrangement where a group of individuals or families co-own and share use of a vacation home or condo. Sometimes these arrangements are organized by the users themselves, but more frequently they are set up by a property owner or developer who outfits the property, creates the legal structure and documents, then offers the fractional interests for sale. Contrary to what you might think, groups of complete strangers who come together through these packaged offerings are generally much more successful at co-owning and managing the shared property than groups of friends or family members.

Statistics show that most people only use their vacation home 17-30 days each year. Fractional are appealing because they allow people to own only the share of a vacation home that they will use, rather than the entire property. The main benefits of fractional ownership are:
•
Lower Acquisition Costs: Buying a fraction of a property means the buyer pays only a fraction of the cost of the entire property. In addition, the costs of renovating, furnishing and outfitting the property are shared by the owner group. Although the per-share cost of fractional packaged by a property owner or developer include a “markup” (on average the total share price will be 150-250% of the cost of the home and contents), they are still a good deal for most buyers because they avoid the time, effort and difficulty of outfitting the property, creating the legal structure and assembling the owner group.

•
Lower Operating Costs: Owning real estate involves ongoing operating costs such as property tax, insurance, utilities, and maintenance, including the cost of repairing and replacing the furniture and other household goods inside. Maintaining a vacation home can be particularly complex because of intermittent usage and the distance between the owner and the property, often requiring the assistance of a local manager or management company. Sharing the cost and efforts of operating dramatically lightens all these burdens.

•
Eliminate or Diminish Need for Rental Tenants: Most vacation home owners face the unpleasant decision between leaving the property vacant when it is not being used by the owner, or renting it out. As anyone who has been involved in vacation rental knows, the rental option has significant downsides. Do it yourself, and you spend innumerable hours promoting the rentals, responding to inquiries, handling bookings, checking tenants in and out, and readying the property between tenants. Hire a manager or rental agency and you will generally give up 30-50% of the rent. Either way, the tenants extract a significant toll on the property, and the rental periods most demand are the same ones when you would prefer to use the home yourself. While some fractionals allow owners to rent out their home when they are unable to use it, the lower cost of buying and owning a fractional means that most owners do not need to use this option.

•
Diversification of Investment and Destination: Fractional ownership allows the money that would have been needed to own and operate a single vacation home to be spread over two or three vacation homes. Spreading your dollars over several homes lowers investment risk and increases the likelihood of profit by exposing you to two or three different real estate markets. Moreover, owning vacation homes in several locations gives you more vacation options each year, while still allowing you to spend your time in your own homes where you are comfortable with the surroundings and know how everything works.

The benefits of fractional ownership are so compelling that many people who could easily afford their own place are opting for fraction ownership instead. Perhaps even more surprising, many people who already own a vacation home are choosing to sell some fractional interests in it in order to lighten their cost and management load and still use the property just as often as they ever did.
LEARN MORE

For more information about the various types of fractional vacation property, and how to compare a timeshare to a private residence club, destination club, vacation club and other types of fractional, shared and co-ownership of vacation residences, see:

http://www.sirkinfractionallawyers.com/short_format/fraction…
0 votes
Kelly Klein, Agent, Santa Rosa Beach, FL
Mon May 13, 2013
It means you are a fractional owner with others for an entire condo and therefore you will be sharing your ownership with others as well. You can elect to buy all fractions and own the unit by yourself or buy just what you can afford and share expenses and ownership with other owners. You do receive a title or deed to the property which allows you to resell it at a later date. Let me know if you still have an interest.

Warmly yours,
Kelly
0 votes
Mike Jones, Agent, Santa Rosa Beach, FL
Sun May 12, 2013
John,
Fractional ownership means you do not own the entire unit. As in 10 Harbor Blvd you are one of 8 owners. You have 6 designated weeks a year. Taxes are prorated between each of the owners. Feel free to contact me @ 850-461-9750 anytime I can be of help.
0 votes
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