Fractional Condos?

[Krazza]

Am I behind the times or is this an emerging market? A friend has bought one down one the Gulf Coast near Destin FL.

I know they are like timeshares, well the concept is, but they are normally upscale properties.

Has anyone had any dealings with this area of the business.?

[TJ2007]

They are definitley becoming much more mainstream. I think they are a very more cost effective way of owning a vacation property than dealing with all the debt and maintanence yourself.

But you must make sure the company behind it is solid and has great management.

However right now there are many excellent properties all over the world that are affordable to buy yourself and have leaseback programs with a guaranteed rental return. Some have 5 star facilities and hotel services.

Personally I would go for 3 or so of the latter and spread your risk in different markets, plus then you can vacation in different countries every year, whether you want to ski or sit on the beach.

[fractional-homes]

I know they are like timeshares, well the concept is, but they are normally upscale properties.

A lot of people think fractional ownership is just a high-end timeshare, but in fact, fractional ownership is very different.

Fractional ownership is a deeded ownership, unlike timeshares. Timeshares are often very generic homes built out of mass production. Fractional homes are very upscale, in the millions of dollars range. Fractional homes have a very investment value, like general home ownership. These homes are often unaffordable to most people. Plus most vacation home owners use the home only a few months a year, so owning a fraction of it makes better sense.

Fractional ownership is growing rapidly, even in the slow real estate market. There are many hot markets in the US as well as in Mexico, Paris, and London.