What is Fractional Ownership
Fractional ownership simply means the dividing of any asset into shares. In the case of property, the title or deed can be legally divided into shares. In most cases this is done by creating a company which owns the property. This then allows multiple owners or investors to own shares in the company. Shares can be purchased and owned by more than one individual. The reason for this can vary. The two main reasons are to allow transfer of shares without the need to reflect changes on the title or deed to the property, and for tax benefits.
Shared ownership of a property and its deed also entitle shareholders to usage rights, in the form of weeks. Fractional Ownership is not the same as Timeshare. Fractional Ownership gives much of the freedom and usage benefits offered in timeshare, however, the big fundamental difference with fractional ownership is that the purchaser owns part of the title (as opposed to just units of "time"). Therefore, as the property appreciates in value, then so do the shares. As with owning a whole property, fractional owners can sell whenever they deem necessary or prudent, releasing the capital growth from their "bricks & mortar" investment.
