 Fractional Share Ownership vs. Full Ownership
Fractional ownership merges many of the benefits of owning a vacation home with the amenities that go with a Five-Star resort and spa:
|
|
Full Ownership
|
Fractional Ownership
|
Purchase Price
|
$2 million
|
$300,000 - $400,000
|
Annual Costs and Expenses
|
$50,000
|
$8500
|
Property Taxes
|
$30,000
|
$5000
|
Financing
|
Financing available with 25% Down payment and 75% mortgage; individual financing
|
Financing available with 25% Down payment and 75% mortgage; individual financing
|
Usage
|
Unlimited Usage; most vacation home owners use their 2nd home for three to five weeks annually
|
Eight weeks usage per year, on average
|
Amenities
|
Basic HOA amenities
|
Five-Star concierge services tailored to your specific needs and desires, with electric vehicle, gift baskets on arrival, and unlimited personal options, including daily maid service, in-house massage and personal chef; basic HOA amenities included
|
Property Management
|
None...If something is broken, you find out upon arrival
|
Full property management services to make repairs, take care of ongoing maintenance and to prepare your home for each visit so it's ready when you arrive and you can start your vacation hassle free
|
Cleaning Charges
|
$400 after each visit
|
$400 after each visit
|
Rental
|
May rent anytime
|
May rent your Planned Vacation time
|
Fractional Ownership vs. Timeshare Rental
The fractional share ownership model is reminiscent of renting a timeshare, however, there are some significant differences. Most importantly, fractional ownership is just that: ownership, and not a rental program like a common timeshare. Here are some key differences at-a-glance:
|
|
Timeshare Rental
|
Fractional Share Ownership
|
Typical usage
|
1 week
|
6-8 weeks, throughout the year
|
Ownership
|
Contract on rental usage, reverts to developer after a certain number of years
|
Fully deeded ownership, which can be sold at any time on the market
|
Property
|
Timeshare usage may occur in any number of similar units, as assigned by the timeshare developer
|
Return many times a year, to the exact same property, with the same furnishings, Five-Star amenities, and personal items in your private locker
|
Taxes
|
Can deduct interest payments on taxes
|
Can deduct interest payments and use 1031 exchange guidelines for tax advantages
|
Sales Experience
|
High-pressure sales; high commissions for sales rep; unpleasant all around; many say it's worse than buying from a used car salesman
|
No pressure. The sales experience should be a pleasant introduction to our Five-Star service
|
Resale
|
Can resell the rental in the timeshare market, but often without any appreciation
|
Can resell in the open real estate market, through MLS, and may benefit from property appreciation
|
Informational Links
Learn more about the benefits of fractional ownership from these news sources.
|
|
