What is Fractional Ownership?
Fractional ownership is a percentage share of an expensive asset. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing. Whether fractional ownership provides a financial advantage over renting is an on-going debate, and some countries and regions have tax laws that provide additional benefits for owners, such as capital-loss allowances, while others might penalize ownership over renting.
Fractional Property Ownership.
Fractional ownership simply means the division of any asset into portions or shares. If the “asset” is a property, the title can be legally divided into shares. Shared ownership of the property and its deed will also entitle shareholders to certain usage rights, usually in the form of weeks.
Real Property
The practice of joining together with family and friends to share ownership of vacation property has been around for many years. Fractional ownership divides a property into more affordable segments for individuals and also matches an individual's ownership time to their actual usage time. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property. In such schemes the basic agreement is between the members themselves, whereas in most commercial fractional ownership schemes, the owner's principal relationship is with the property developer and/or promoter of the scheme.
Fractional Ownership in Tourism.
Say you are on a trip to Phuket, Thailand. There are many Phuket Hotels, but you are looking for a much cozier place; something that fits the phrase ‘home away from home’. This is where fractional ownership comes into play. You can easily find their website by searching using the keywords ‘Vacation Rentals Phuket’, ‘Villa Rental Thailand’, ‘Phuket Holiday Rentals’ and / or ‘Phuket Vacation Villas’.