Fractional ownership is a smart and affordable way to own an interest in a luxury home in a prime location. Investors acquire a share in the company which entitles them to exclusive usage rights to a luxury home owned by the company. Typically this share will entitle the investor to the use of the holiday home for four weeks annually. The company is responsible for all operating and administration costs. These operating costs are then shared with the other shareholders making the investment extremely efficient and cost effective.

GOOD ADVICE:  Many fractional ownership companies tend to own a stand-alone house which investors then acquire a share which entitles them to use the house.  This in itself is great as you then have the use of a holiday home for your allotted times. Going to the same holiday year in and year out can become tiresome.  So if you really want to benefit you should look for a fractional ownership company that has houses in a number of areas or resorts and where your share enables you to exchange your time at your usual holiday home and go stay at a different holiday home. 

Also find out from the company if you are able to exchange holidays with other resorts locally and internationally and use your allocated time at another destination. These companies would be affiliated with companies such as the Registry Collection or RCI.

·         This property is yours to occupy for four weeks every year. (this can vary depending on your holiday requirements)

·         You are not responsible for the physical maintenance of the property.

·         You are responsible for levy which covers your share of the operating and administration costs of your unit.

·         If you are unable to occupy your holiday home you will be able to rent it out (and earn income from it).

HOT TIP: Look to purchase an affordable share in a debt-free and appreciating luxury holiday home

This type of ownership entitles you to occupy a furnished holiday home or apartment in a fully serviced resort property for a specified amount of time every year annually. Prices of timeshare vary depending on standard of property and facilities, length of period to be purchased normally a week), season and size of unit (One two or three bedroom) There is an annual levy payable each year to the resort. Timeshare can be exchanged so you can take holidays at other resorts for your allocated time or can be deposited in a rental Pool if not utilised

Time share is packaged in a number of different options:

·         Fixed week: This allocates a one week occupancy at a specific time every year

·         Floating week: this will allocate you a week in a particular season

In summary:  Fractional ownership is a more refined and sophisticated option in leisure investment.  The product is more upmarket and the units tend to be of a better quality and bigger size.

You can pick up some great deals on the timeshare option of leisure ownership through timeshare resales.