Fractional Ownership Vacation Homes - A Smart Investment
Here are some of the major differences between buying a fractional ownership vacation home vs. a timeshare:
1. Luxury - Fractional Timeshares are much bigger and usually a lot nicer. Timeshares tend to be small cheap cookie cutter housing pawned off to unsuspecting tourists by pushy salespeople that don’t take no for an answer. Fractional ownership properties are very classy and are actually worth the combined total of the investment from each investor. This may sound a little confusing so I’ll break it down for you:
Timeshare:
25 investors (each investor buys 2 weeks) x $47,000 = $1,175,000 house
Usually these timeshares are valued well below $150,000
Fractional Ownership:
12 investors (each investor buys 1 month) x $50,000 = $600,000 house
Fractional ownership houses are valued around $550,000-600,000. In fact if you compare timeshare to fractionals you’ll notice that per week timeshares are more expensive for less room and lower class furnishings.
2. Global Exchange - Global exchange gives you the option to exchange unused weeks at your fractional to vacation in multiple vacation spots around the world. Many timeshares offer this as well but the houses and amenities in times are typically much much lower then a fractional. If you’re going to a vacation in Greece do you really want to spend it in a cramped 500 sq ft studio apartment in the bad part of town?
3. Easier Financing - Banks and lenders consider fractional ownership homes to be similar to a second home, so it’s usually easier to finance a fractional over a timeshare. Also, the rates are often time lower on a fractionals.
Here are some of the major differences between buying a fractional ownership vacation home vs. a timeshare:
1. Luxury - Fractional Timeshares are much bigger and usually a lot nicer. Timeshares tend to be small cheap cookie cutter housing pawned off to unsuspecting tourists by pushy salespeople that don’t take no for an answer. Fractional ownership properties are very classy and are actually worth the combined total of the investment from each investor. This may sound a little confusing so I’ll break it down for you:
Timeshare:
25 investors (each investor buys 2 weeks) x $47,000 = $1,175,000 house
Usually these timeshares are valued well below $150,000
Fractional Ownership:
12 investors (each investor buys 1 month) x $50,000 = $600,000 house
Fractional ownership houses are valued around $550,000-600,000. In fact if you compare timeshare to fractionals you’ll notice that per week timeshares are more expensive for less room and lower class furnishings.
2. Global Exchange - Global exchange gives you the option to exchange unused weeks at your fractional to vacation in multiple vacation spots around the world. Many timeshares offer this as well but the houses and amenities in times are typically much much lower then a fractional. If you’re going to a vacation in Greece do you really want to spend it in a cramped 500 sq ft studio apartment in the bad part of town?
3. Easier Financing - Banks and lenders consider fractional ownership homes to be similar to a second home, so it’s usually easier to finance a fractional over a timeshare. Also, the rates are often time lower on a fractionals.
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