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Fractional Home Ownership Offers New Option In Second Home Ownership

Posted by Hubert Miles | December 7, 2009 .
by Hubert Miles

Many people are turning to a relatively new concept in second home ownership. No it’s not timeshares. It’s called fractional home ownership. The best way to define fractional ownership is that it is a middle ground solution between sole ownership and timeshares where owners own shares in a piece of real estate.

Fractional ownership is different from a timeshare. In a timeshare, a buyer purchases a 2 week block of usage in a resort that can be traded between other timeshare owners at other resorts in the network.

In fractional ownership you are entering into a partnership with other owners where you share the cost of owning and maintaining the home the partners. In essence, you are buying a “divided piece” of real property that can range from 2 pieces to- pieces.

For example, if a lake home is divided in the- deeded pieces, each buyer would get to use the lake home 1 week a season for a total of 4 weeks a year. Other popular options are properties divided into 4 pieces where each owner gets to use the home 1 week a month and only share expenses with four other owners.

Many fractional ownership homes are located in private communities with 24 hour security patrol services. Many also have private amenities like pools, spas, docks, etc. Some fractional ownership condos and town homes share amenities with other owners in the building.

The homes are maintained through a homeowners association or HOA run by a property management firm. The fees from the HOA are used to pay for utilities, insurance, taxes and maintenance on the home.

Many owners of fractional homes say that they choose this route as a means of owning a vacation property that they did not have to care for. They remained in an ownership position in a property that continues to appreciate.

Closing Comments

Fractional ownership may not be right for everyone, but does provide more options for vacationers who are looking for affordable options for ownership.

About the Author:
Hubert Miles is the founder of Waterfront Houses USA, an online marketing service that provides Lake Homes in the US and Canada. Find Connecticut Lake Homes.

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