Jessie Brogd…, Home Buyer in Rome, GA

What is fractional ownership?

Asked by Jessie Brogdon, Rome, GA Mon Mar 18, 2013

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

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8
Kelly Klein, Agent, Santa Rosa Beach, FL
Thu Apr 3, 2014
Fractional ownership is a method in which several unrelated parties can share in, and mitigate the risk of ownership of a high-value tangible asset, usually a jet, yacht or piece of resort real estate.

http://en.wikipedia.org/wiki/Fractional_ownership

We have several buildings in our area offering this type of ownership. In the case of the Emerald Grande, you must be a cash buyer and then you will receive a title to your fractional ownership which is six weeks.

Often times the dues are quite high and ever increasing so be careful when purchasing.
0 votes
laurendiaz308, Home Buyer, New York, NY
Thu Apr 3, 2014
A timeshare ownership is a property that you have the right to use for a period of time every year, along with other owners. The properties are usually resort condominium units, equipped with several bedrooms, a kitchen and living room. Instead of paying for the whole property, you only pay a “share” of the whole price. Owning a vacation property means that you have access to the “share” you own in a resort condominium at a specific time of the year. Because of the size of the units, Timeshare ownership can be good for big families who want spacious rooms and all the facilities and amenities that only a resort can provide. Although the idea of timesharing might sound ok, there are lots of complaints about it.
0 votes
Agata Grudzi…, Agent, Destin, FL
Tue Mar 19, 2013
Fractional ownership is an equal part of a property where each owner holds the same ownership, duties and rights, sharing expenses and usage.
Main distinction between timeshare and fractional ownership is that with a timeshare you buy the right to use a property, as oppose to buying and owning the real estate.
With fractional ownership, you’re getting a deeded piece of real estate.
The period of time you get to use your property depends on number of fractions; often it is four weeks every year.
You can find fractional ownership among modest apartments or condominiums all the way to multimillion euro / dollar properties.
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Myke Atwater, Agent, Santa Rosa Beach, FL
Mon Mar 18, 2013
Jessie, the fractional ownership in Destin is usually found at the Emerald Grande. What you are buying is partial ownership of a condominium that will entitle you to stay there for whatever "fraction" of time you purchase. The larger the fraction you own, the longer time you will be allowed to stay in the property. Emerald Grande condos generally run upwards of 400,000+ to purchase one outright, so some people might find an advantage in owning just a part of one, which they can sell in the future if they choose.

As said before, it operates much like a time share, and there are different versions of those, too. Be sure to check out ALL the ramifications of ownership this way before making a decision, and prepare a list of questions for answers regarding insurance, liability, hidden expenses that might not be readily apparent.

Myke Triebold, GRI, SFR, ABR,
MykeSaysSold@aol.com
850-305-6256
0 votes
Kelly Klein, Agent, Santa Rosa Beach, FL
Mon Mar 18, 2013
From Wikipedia, the free encyclopedia

In business, fractional ownership is a percentage share of an expensive asset. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing. Typically, a company manages the asset on behalf of the owners, who pay monthly/annual fees for the management plus variable (e.g. per-hour, per-day) use fees. For rapidly depreciating assets, the management company may sell the asset and distribute the proceeds back to the owners, who can then claim a capital loss and optionally purchase a fraction of a new asset.

Whether fractional ownership provides a financial advantage over renting is an on-going debate, and some countries and regions have tax laws that provide additional benefits for owners, such as capital-loss allowances, while others might penalize ownership over renting.
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Mike Jones, Agent, Santa Rosa Beach, FL
Mon Mar 18, 2013
Jessie,

Fractional ownership is where the buyer is purchasing a portion of the property, usually with 7 other buyers. Each buyer would then have use of the property for a specified number of weeks during the year. Each buyer would also be responsible for full portion of the HOA fees. It is a ownership unlike a time share. Feel free to contact me anytime I can be of help.
Mike Jones
0 votes
Clayton Bonj…, Agent, Miramar Beach, FL
Mon Mar 18, 2013
In a Fractional ownership, you buy a fraction of the property. Many times it will be 1/8th or more or less. It is similar to a time share but you actually own a portion. You are limited on when you can stay because it is shared ownership. My parents owned one in Snowmass and it was incredible. They often offer great amenities but be sure to check the monthly fees as they can be very high.
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Peter Mohyls…, Agent, Destin, FL
Mon Mar 18, 2013
Fractional ownership and time share are basically the same. You buy a period of time at that property. It has all the benefits of ownership at a reduced price. it is great for people who vacation at the same period each year.
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