Is Fractional Ownership Timeshare?
Sunday, September 06, 2009The growing popularity of Fractional Ownership across Europe has led to some degree of confusion in the differences between Fractional Property Ownership and Timeshare.
In Europe we like to think of fractional being shared ownership, whereas in some other jurisdictions the word encompasses all elements of property ownership from vacation clubs to timeshare.
Fractional ownership is where the owners i.e. four to 12 people own a fraction of the property asset, this should not be confused with timeshare as the two are completely different. In a timeshare scheme, you only ever own the right to occupy. You never own any of the property. In essence all you are really doing is paying for your holidays in advance, often with expensive marketing, management and insurance fees on top.
With fractional you are purchasing a freehold property asset and should you wish to sell then any profit will be yours. Fractional properties are subject to the same market forces as freehold properties and, because they are located on luxury resorts with full facilities on hand, your asset is likely to rise in value.
The growth in popularity of fractional has led some timeshare companies to call their products fractional ownership, when in reality they are no such thing.
The legal structure of timeshare and fractional ownership is completely different. With timeshare you do not own the title to the property and your investment seldom has any resale value. Fractional ownership schemes give you legal title to your percentage of the property and you are free to sell at a profit.
Fractional
- Own property for 4-12 weeks
- Pay % of purchase price
- Pay % of running costs
- Has resale value
- Own bricks & mortar
- Own % of freehold of the property
Timeshare
- Right to use only
- Ave. 2 weeks - very expensive
- Very high maintenance
- No resale value
- Do not own bricks & mortar
- Own time only
The legal structure for fractional ownership has been developed over a number of years by numerous Fractional Companies to ensure it is completely safe and secure.
Fractional ownership properties are available from just £25,000 for a twelfth share through Dolphin Golf Property. Click Fractions to Buy to see the range of properties available and to see how you can benefit from Fractional Ownership with Dolphin Golf Property.
Also see Freddie 4 Ball section where the Fractional Ownership price starts from £6,250.
