Fractional
Fractional Ownership
What is fractional ownership?
The buyer acquires part ownership of the
equity in a given property. The fractions
purchased typically vary between 1/6 and
1/12 and give the owner proportionate usage
rights. For instance, if you buy a 1/12 share,
you will usually be entitled to four weeks use
each year. As the deeded owner, you are able
to sell your share at a later date and benefit
from any appreciation in the property value.
lower entry levels. The investment investment. With leaseback, private residence club model
also often outperforms market you typically lease the property tends to boast is the ability to
averages - buying a quarter of back to a rental management enter exchange programmes
a larger and /or better located company for a minimum of nine and holiday at other global
property is likely to lead to greater to 11 years, depending on the destinations.
appreciation than an outright contract. Therefore, you are
purchase for a similar level of technically making a longer-term Clearly, the traditional investment
investment. You can also achieve commitment than with fractional. vs lifestyle division isn’t as black
greater diversification within one A final factor to weigh up is that and white as was previously the
asset class by investing in different most leaseback schemes currently case, so investors should ascertain
resorts - for example, one market don’t incorporate any element exactly what they want, and for
may be flat whilst another is of exchange - although Leach what purpose, and match the
buoyant.” notes that “one thing we do product accordingly.
offer is the ability to swap weeks
Another consideration is the and stay in other properties”. So
time you intend to hold the one advantage the fractional/
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