Many investors and homebuyers are turning to fractional ownership as an affordable and easy way to purchase a second home or vacation property.

WHAT IS FRACTIONAL OWNERSHIP?

With fractional ownership, a property is owned and shared by at least two or more individuals. To understand the concept, consider purchasing a $2,500,000 oceanfront estate. Instead of becoming the sole owner of the property, you purchase a share of it for $500,000, along with 4 other people. Now, you own 1/5th of the property. Expenses associated with owning the property, such as taxes and property maintenance are equally distributed among the owners.

HOW DOES IT WORK?

Use of the property is normally allotted into weeks or months. Not to be confused with timeshares, where you purchase a specific amount of time to spend at the property, fractional ownership involves actually owning a portion of the property you purchase. In most cases, a third party or management company takes care of everything from upkeep and utilities to taxes and insurance.

For more info on fractional ownership and local opportunities, call Karen Kolozs at 407.701.0114.