What is Fractional Ownership
Fractional ownerships, or private residence clubs, recognize that you do not want to buy whole homes, which you would only use for a few weeks a year. Instead, it grants you access to luxury condos or vacation homes in destinations around the world, without becoming the sole owner of the property. This frees you from being solely responsible for the property and related expenses. It is essentially partial ownership of a vacation property.
Fractional ownership divides a property into affordable segments for individuals and also matches an individuals ownership time to their actual usage time. A fractional ownership share gives you, the owner, certain privileges, such as a number of days or weeks when you can use the property.
Fractional ownership offers the flexibility to use some or all of your allotted weeks. For the allotted weeks you don't use, you may choose to rent them out and depending on how much you charge, you may be able to turn a profit. You might even be able to rent these weeks to the other owners who wish to spend more time at the property. Some people purchase fractional ownerships strictly as an investment, choosing to rent out all of their weeks or just simply sell their shares when the property value increases.
In most cases, a third party or management company takes care of everything from upkeep and utilities to taxes and insurance.
Fractional Ownership vs. Timeshares
Often, people confuse fractional ownership with timeshares. Both situations are common with vacation and resort-type properties. With a timeshare, however, you would purchase a specific amount of time to spend at the property, such as 3 weeks out of every year. You would not actually own any portion of the property. With fractional ownership, you actually own the portion of the property you purchase.
Though you have little responsibility with a fractional ownership, you do get the deed to the property, specifying the number of shares you own. These shares are yours and you can gift or sell them as you wish.
Why Now is a Good Time to Buy
Right now, the real estate market in Las Vegas is going through a major correction. These luxury condos at The Meridian Las Vegas originally sold for over $650,000. As part of the Oasis Private Residence Club, you have the opportunity to own now for $25,000. Real estate prices will go back up and now is the perfect time to take advanatge of the low real estate market. As an added benefit of fractional ownership, when prices do go back up, you personally benefit from the appreciation as a deeded owner of the property.
