This USA Today's article tells the current condition for fractional ownership homes. With the real estate market slowing down across the board, the fractional ownership is relatively stable based on our experience.
Fractional ownership is a good investment vehicle, unlike destination clubs that don't offer any real ownership, or return on investment. Recently one major destination club company in our area filed for bankruptcy protection. The club members may not be able to get their deposits back, which amount to $300,000 - $400,000 per account.
For most people, a home overseas is a fantasy, be it a Parisian pied-à-terre or Scottish golf cottage. But now those considering second homes abroad are discovering that if you can't have it all, you can still have part of it.
Fractional ownership splits a residence into six to 10 shares, allowing buyers to spend less and use it only a portion of the year. (Unlike a traditional timeshare, in which typically set weeks are bought for each year, fractional ownership offers larger chunks of time, which often rotate from year to year.)
http://www.usatoday.com/travel/destinations/secondhomes/2009-02-26-fractional-ownership_N.htm
Love to hear other fractional ownership companies' experience. What trends do you see? The USA Today mentioned 3 hot destinations: Tuscany, Italy, Bermuda and Paris France. These locations are indeed very popular.
Previous Topic
Index
