California Fractional Ownership

Are you thinking of buying a fractional ownership in California? Fractional ownership, is a way of owning real estate or a property for a fraction of a year and being able to use it every year for the amount of time that you own it. Fractional ownership is ideal for a second home, a second or third residence, retiring, winter escapes, or vacation homes.

How does a fractional ownership compare with a time share? A fractional ownership is far more exclusive and include many more luxury amenities and services than time shares. They tend to be larger homes, usually three to five bedrooms. Time shares usually allow you use for just one to two weeks per year. A fractional ownership offers from two to 13 weeks, and those don't necessarily have to be consecutive weeks. Pick the weeks you want. Financing on a time share is difficult, rates are high, regardless of how good your credit is. Banks and mortgage firms consider a fractional ownership to be appreciating assets and will often treat them like any other second-home purchase.

A fractional ownership tends to be larger than most condo hotel units. The average fractional ownership offers three to five bedrooms, while most condo hotel units are studios, one bedrooms or two bedrooms. Fractional ownerships are most prevalent on the West Coast, particularly in ski areas. However, both types of real estate are rapidly gaining popularity and soon there will be more fractional ownerships across the country to meet the growing demand.

In the U.S., the first fractional ownerships were in major ski areas out west. Eventually they made their way to northeastern ski areas. Since then fractional ownerships have begun appearing in golf-oriented communities like Hilton Head Island, South Carolina and popular beach states like Florida. Jupiter, FL. being one of the most popular, is one of the pricier fractional ownership areas.

What does a fractional ownership cost? Prices vary based on the size, amenities and location of the fractional ownership property, but most are in the $100,000-$500,000 range. Remember these are elegant homes that would cost you so much more if you owned it outright.