Fractional Home Ownership - A Better Way to Own a Second Home?

Why buy a whole pie if you only want a pie? IfIn a fractional ownership share you are guaranteed a
fractional jet ownership makes sense to you,set period of time in your residence. You know years
fractional vacation home ownership will too.in advance when you will be enjoying your vacation
As the second home market is experiencing a boomspot. Many fractionals also allow exchange so that if
time, 1/3 of all homes sold last year were for secondyou ever bore of the 'same old great place' you may
homes. Many will be used as retirement residences inbe able to trade it for another destination residence.
the future, but who wants a single retirement homeHow is fractional different from timeshare you may
when you can buy several in different locations forask? Timeshare is typically sold in 1/52, or one-week,
the same expense?shares. This greatly increases the marketing expense
The 76 million baby boomers who will retire in theand dilutes the real estate value or your deeded
next 15 years are studying their options and one hotpurchase. With fractional, 1/12 or a full month of use,
option is fractional real estate ownership. The biggestis typically the minimum share, and the real estate
number of boomers turned 50 this year and last, andvalue you are purchasing is closer to that of "whole
at 50 years old, statistically people begin to shop forownership".
a retirement residence. At the same time, theMortgages for timeshare are readily available, but
fractional real estate business is red hot.again at a much higher rate and cost - typically 10%
Where do boomers want to be in retirement? On aor higher rates. Financing for a fractional is again much
golf course? Although many do, most want to be incloser to that of a typical second home with many
walkable communities, with shopping and diningof the same 30 year type mortgage options. Few
options. Many want to return to school, and pursuelenders understand fractional financing.
educational interests they never had time for before.Buyers of fractional also benefit by sharing the cost
What if you can own 4 homes, for 3 mos a yearof these facilities, boomers will be able to afford the
each, and enjoy all the best places.lifestyle for which they desire and have become
Quarter-share fractional ownership allows this dreamaccustomed to while affording multiple homes in
to be an affordable reality.retirement.