What is Fractional Ownership

October 10, 2011

The European trend to invest in the fractional ownership of a vacation home is growing more and more popular in this country. When you co-own a vacation property; you share the purchase price, maintenance costs and taxes with your co-owners. 

There are several advantages to fractional ownership. You have stronger buying power when you combine your money with other buyers. You can purchase a higher quality property, in a top location. A superior property will bring more appreciation value over time. You also share the burden of owning a home with the other owners. You have more control over the maintenance duties and the usage scheduling than you would with a conventional time share property.

Working out the details of a fractional agreement with the other co-owners is something like creating a condominium association and can be drawn up by a qualified real estate attorney.

If you are thinking of buying a vacation home, but would like to share the responsibility of owning and maintaining a 2nd home, a fractional ownership could be right for you.

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