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FRACTIONAL OWNERSHIP PROPERTIES are the more affordable alternative for those who want to own vacation homes in resort areas. Buyers will have the privilege to own fractions of the asset without the hassles related to maintenance. The asset can also make good investment portfolios.">FRACTIONAL OWNERSHIP PROPERTIES, or fractionals, are the fastest growing segment in the vacation homes market. They have outsold timeshare plan which has been around for a longer period. People have realized that it is more beneficial to buy part of the properties than just buying rights for the time to stay. Most of fractionals are located in beautiful locations like ski resorts or the Caribbean. Naturally, the prices of such assets in those locations are very high. But since the prices are shared among several buyers, each buyer or co-owner will pay much less than the full price. The drawback of fractionals is that buyers must be willing to share the use and the responsibility with other co-owners. However, having to share the time to stay in the property is not a big deal for the owners because they normally stay for a maximum of six weeks in a year. So other co-owners can stay at the shared home for the rest of the year. The arrangement is very beneficial for the owners since they can make use of the asset more effectively. Shared vacation homes are managed and maintained by management companies. Owners do not have the burden for the maintenance since they have paid the management company to do the job. The management company will also arrange staying schedule for the owners and manage rentals. Purchasing a vacation home using fractional ownership plan is a good investment opportunity. You buy only fractions of the asset and you can do usual transactions like selling or renting of your part without the consent of other co-owners. As an investment product, you should only purchase fractionals after you do careful examination of the product. These are the items that you should take into consideration if you decide to make a purchase. Investigate the future prospects of the asset. You also need to investigate market rental value in that location. The return of your investment will come from rentals or selling the asset. Clarify with the developer that you are really buying fractionals. The important point is that you are buying equity in the property. If that is not the case, then you are only buying the dreaded old timeshare plan. Do the transaction only with the developer. It is easier to deal with a developer than with individuals in case something go awry in the future. There might be some individuals who offer you some sweet deals but you should stick with offers from the developer. Be sure to understand the terms and the services provided by the management company. There are some arrangements like booking dates, renting policy, or maintenance schedule that should be known in advance. Also do not forget to communicate what your expectations are. FRACTIONAL OWNERSHIP PROPERTIES are the more affordable alternative for those who want to own vacation homes in resort areas. Buyers will have the privilege to own fractions of the asset without the hassles related to maintenance. The asset can also make good investment portfolios.
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