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Fractional Ownership: Start embracing it for these 3 reasons

Discover the top 3 benefits of investing on a fractional property over a timeshare.

By Ancana, June 21, 2022

Discover the top three benefits of investing in a fractional property over a timeshare.

The term “fractional ownership” is probably something totally new to you or maybe you have heard of it before but you are not 100% sure what it really means to acquire a fraction of a vacation property. You may even confuse this concept a bit with the famous “timeshares” that still come with a negative connotation of persistent real estate agents who attract large masses of people with extraordinary promises like super-discounted hotel nights or free passes at your children’s favorite amusement park.

Fractional Ownership vs. Timeshares

But fractional ownership has a fundamental difference with timeshares: in a timeshare, you pay for the vacation period spent on a property, but you do NOT own anything. You only have the right to use it for a little while.

However, a recent form of real estate sharing is taking hold and may become the millennial improvement on timeshares. And while they are now inaccessible to younger people, the model may become attractive as you get richer.

Two people signing to acquire a property
Image extracted from the article: En el mar… el home office es más ‘sabroso’, El Financiero

By mid-2021, it was calculated that the annual sale of fractional properties would be 9,806 units, all in tourist areas, due to the national and foreign demand for vacation properties to rest in times of pandemic. This is according to the article El Financiero.

So is a fractional ownership better?

We all daydream about owning a vacation home, imagining our family enjoying it for generations. If you’re planning to buy one, you may want to find an option that won’t cost you too much money but still gives you a luxurious estate. Timeshares are a common option, but they may not be the best choice in the long run.

Both “Fractional Ownership” and “Timeshares” are intended to help reduce the costs of owning a vacation home by sharing expenses among multiple owners. Yes, they seem to be the same or at least similar; however, there are important differences between both concepts that we will tell you about below:

ONE.- Not only do you share the property, but you yourself are the legal owner!

Casa Vista al Río located in Valle de Bravo, one of the properties available for sale in fractions of
Vista al Río, Valle de Bravo, Estado de México. Luxury property available for 1/4 fraction in Ancana.

Within the timeshares, you buy rights of use for a defined time without owning the property as we mentioned before. However, through the acquisition of a “Fractional Ownership,” you share the property (which reduces maintenance costs) and on top of that you are the legitimate owner of it. A marvel!

TWO.- Increased amount of time in your property

A week of vacation is often not enough. A traditional timeshare limits access to just one or two weeks per year. While another of the benefits of fractional ownership is continuous access by availability, which is usually five weeks or more a year. This depends on the number of fractions in which the property is divided.

THREE.- Sale at market price (with an appreciation trend)

Casa Palmar, Puerto Escondido, Oaxaca. Luxury property available for 1/8 fraction in Ancana.
Casa Palmar, Puerto Escondido, Oaxaca. Luxury property available for 1/8 fraction in Ancana.

In the fractional scheme, the resale value of the property is the market value, which means that you will be able to enjoy the financial benefit of the appreciation. Buying a fractional property is really an investment and not an expense. Timeshares can lose value over time and trying to sell them can be a real headache.

You may also be interested in: Making the most of your fractional vacation home: tips and tricks

Now that you know a little more about the benefits, would you like to review the best options we have for you? At Ancana we have the best selection of luxury properties for you and your family. Discover the vacation home of your dreams now!

Owning a vacation home has never been this easy.

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Ancana Living © 2023

Ancana Living © 2023