Fractional Property

Fractional or shared real estate ownership enables a property(s) to be jointly owned, used and enjoyed in much the same way as the benefits offered with timeshare.

However, the key difference is that the fractional purchaser owns part of the title (as opposed to only purchasing units of “time”).
The title or deed is legally divided into percentage shares or fractions which can then be purchased and owned by more than one individual or company. Shared ownership of the property and its deed usually also entitles fractional owners to certain ‘exclusive member privileges’; preferential booking of weeks, concierge services.

Fractional shares in a property usually range from 1/2 (26 weeks usage & 50% title) to 1/16th (3 weeks usage & 6.25% title) and as a general guide the more expensive the fractional property, the less amount of shares available. Whether owners have access for 3 weeks or 6 months a year, the key benefit is they only purchase fractional shares of the property for the time they intend to use and any service / operational costs necessary at the property are shared between owners.

As you can see from the fractional real estate listings on Fractional Index, fractional real estate owners can sell their fractional property share(s) whenever they wish and in doing so, release any capital growth from their "bricks & mortar" investment .