GMAC Real Estate Fractional Ownership of Timeshares
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Fractional Ownership of Timeshares

Takeaways

  • Fractional ownership allows you to buy a portion of a second home without having to deal with any management and maintenance details.
  • Ownership is usually sold in interests between one-twelfth and one-quarter.
  • Because of a growing vacation second home market, fractional ownership looks to be a good long-term investment.

Did you know?

  • Fractional ownership is viewed as an alternative to fully owning a second home rather than as competition for timeshares.
Fractional ownership gives you a piece of a second home. You really want to get into a vacation property, but you are also looking to make an investment. This rules out buying into a timeshare because you understand it’s better to view a timeshare as a prepaid vacation rather than as an investment. The way to go is to purchase a vacation second home, but the details of maintenance, and prepping the house for use if it stays unoccupied for a period of time doesn’t appeal to you. Your best choice might be a fractional ownership.

Fractional ownerships are sold in amounts ranging from eight% to 25% of a home located in a destination resort. This option combines the affordability of timesharing, a real ownership stake in the real estate, and fractional owners of vacation second homes enjoy the services and amenities of a resort hotel. A management staff takes care of all the maintenance and preparation.

Fractional ownership is marketed as a second home in a resort area you enjoy coming to rather than a pre-paid vacation a la a timeshare. Because the fractional ownership second home market is very new, there’s not much baseline to compare to when selling your fractional investment. But because of the nature of the second home market, especially how the Baby Boom generation is expected to drive the market over the next twenty five years or so, it’s reasonable to bet fractional ownership will rise in appreciation along with the entire second home market.

Search for Second Homes for Sale

To search for a selection of second homes for sale, please visit lifestylehomesearch.com, or visit the website of a GMAC Real Estate Office that serves the area where you'd like to buy a second home. To learn more about buying Second Homes or Vacation Homes, explore the rest of this section, or contact a GMAC Real Estate Agent.