Fractionals, also referred to as private residence clubs, are similar to condo hotels in that they can be put into a rental pool when the owners are not using the property. Also, fractionals are considered a second home purchase with interest and equity benefits that go along with ownership. But unlike a condo hotel, fractionals are typically luxurious private homes located in the most exclusive areas.
Although they are available in studio and one-bedroom units, most are larger with several bedrooms, family rooms, pools, decks and outdoor recreation areas, and a host of other features that make them exclusive properties. A fractional property would be out of the price range of most individuals, but because ownership of the home is divided between a small group of people, this upscale lifestyle becomes affordable.
Typically fractionals are split in 4 to 8 shares, which means that arranging time at the property is less competitive than other types of shared ownership properties. There is no requirement that you have contact with the other owners, but many do develop friendships or at least get to know each other at annual ownership meetings. How involved you want to be with the other owners is up to you.
Even those that could afford to purchase a million dollar vacation home may only be able to use the property for a total of a month or two during the year and might feel that it is not a wise investment. Fractionals allow owners to decide how often they want to use the prope