Many people confuse fractional ownership with timeshare, and while they both are defined by ownership of “time” in a property, they are very different creatures. Keep this in mind: unlike most timeshares, you own your fractional property, and as the deeded owner, you benefit from greater flexibility and more time of use.

When it comes to other benefits, the level of service and amenities with a timeshare leave much to be desired.  With fractional properties, you have ultra-high-end amenities and exceptionally high levels of service. You own your fractional property, and this means that you have all rights to it. You can rent it, sell it, and pass it on to your heirs. And you get to keep the appreciation.

When you look into fractional properties, you will see such terms as private residence club (PRC), destination club, timeshare, and hotel condominium.

The industry defines fractional properties as properties having a square footage price of $1,000 or under. You are considered a private residence club owner if the cost per square foot exceeds $1,000. This is a somewhat arbitrary distinction because factors such as location and brand name influence price per square foot. At Breakaway Vacation Homes we use the terms fractional ownership and fractional property to include both traditional fractional interests and private residence clubs.

Fractional properties are usually located on prime real estate and feature a far superior level of service, amenities, and luxury. As a fractional property owner, you have a luxury second home free from the worry of upkeep, maintenance, do-it-yourself services, and other chores associated with full ownership.
The other types of properties—timeshares, destination clubs, and hotel condos—are not considered true fractional properties because you do not own a deed to the actual property, just the right to use it.

When it comes to using your second home when it suits you and your schedule, fractional ownership does for the homeowner what no timeshare or solely owned property can do! You want family time at Thanksgiving in Breckenridge this year, but your scheduled time slot is for the week before the holiday? Because you work with a service-oriented management company, you can ask your management company to look into swapping time with the shareowner who owns the long weekend you want.

Resales of fractional shares historically have done as well or better than that of timeshare or whole ownership.  This could be explained by the fact that resort locales rarely see depreciation, even in slow or declining markets.  An investment in multiple fractional properties in diverse locations will tend to mitigate your risk. As one real estate market slows, another may see a growth in appreciation.