What is fractional ownership and how does it work?

Fractional ownership simply means the division of a property (or any asset) into portions or shares. Instead of owning the property yourself, you own a percentage or share of the property. The property’s title or deed is legally divided into shares for each of the owners. It is typically used for high-value tangible assets such as a vacation home, yacht, or jet. In our case, for luxury real estate in Umbria, the Languedoc or Provence.

The two primary benefits people gain when they share ownership are: greatly reduced costs (purchase and maintenance) and mitigated risk of ownership. As properties appreciate in value (or not), so do the shares.

Ownership

The most fundamental difference is that the purchaser actually owners a percentage of the bricks and mortar with a fractional title- as opposed to renting the right to use a property with a timeshare. Unlike timeshares, with fractional ownership you can transfer or sell the ownership of your share.

Holding Market Value

Fractionals tend to hold their market value or appreciate over time unlike timeshares which do not often hold their market value. Consider also the expense of sales/marketing that goes into selling a vacation unit 52 times and which is then passed on to purchasers and not recovered.*

Slower Paced Vacations

Slowing down allows us to immerse ourselves in the culture and ambience and truly enjoy our time at the deepest level. Why do you think fractional owners move at a slower pace? Because they can! Most IPS owners enjoy stays of 4-8 weeks per year.

Annual Maintenance and Operation

Each fractional owner pays a portion of the annual running costs which range from around $800-$1600 per year per owner. The dues cover the operational costs including taxes, insurance, utilities, phone, internet as well as a contingency fund. If you compare this to average annual fees for a time share week ($1000), there is no comparison!

Data per fractional consultant- David M Disick