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Fractional Ownership vs Timeshares

What's The Difference?

Is Fractional Ownership the same thing as Timeshares?

Short answer is “no”. Timeshares and Fractional Ownership are related in that they both involve shared ownership of a vacation property, but that is where the similaities typically end. Traditional time share gives you the right to use the property, generally without a deeded interest in the actual real estate. Some timeshares have a points-based system in which the owners are awarded points that can be redeemed at other properties run by the same company. The price point for a timeshare can be dependent on the number of points you purchase.

Here’s a quick look at each of them, and what you should know if you’re weighing your options:

Fractional Ownerships

  • Allow for multiple owners or members to share the cost of an expensive asset such as a high-end resort property.
  • Afford you all the benefits of having a second home, but without all the hassles of cleaning and maintenance and you purchase at a “fraction” of the cost of whole ownership for a comparable property.
  • Vacation homes, also known as Private Residence Clubs (PRCs) allow you to purchase a deeded interest in a vacation property. These properties are typically found in luxury resorts where expensive real estate is more the norm than the exception.
  • Depending on the property or club you purchase, you receive anywhere from 2 to 12 weeks of home ownership privileges per year.
  • Provide the features of a luxury home such as fully equipped kitchens, spacious closets, and storage for your sports equipment combined with all the amenities and services of a luxury 5- or 4-star hotel, such as restaurants, room service, fitness facilities, concierge and housekeeping services.
  • Can sometimes be financed, and can be resold.
  • If financed, interest on your loan is tax-deductible.

Timeshares

  • Involve shared ownership of a vacation property.
  • Give you the right to use the property, generally without a deeded interest in the actual real estate.
  • Most utilize a points-based system in which the owners are awarded points that can be redeemed at other properties run by the same company. The price point for a timeshare can be dependent on the number of points you purchase.
  • Most involve more owners and can offer fewer or different amenities compared to luxury hotels or second homes.
  • Can sometimes be financed with personal loans, and can be sold.

Who Wins?

Your choice, but Fractional residences are more similar to true second homes, have fewer owners per residence, operate like 4 and 5 star hotels and tend to be much more amenity rich than their older sibling timeshare.

That said, if you are making the move out to one of our beautiful mountain resorts, everyone wins!