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Fractional ownership vs. full home ownership

Acquiring a vacation property can be an expensive investment, not to mention the monthly costs of maintaining the home. Buying a vacation home through fractional ownership is a great way to increase your buying power, lower the purchase price, and reduce monthly expenses.

By Ancana, August 9, 2022

Acquiring a vacation property can be an expensive investment, not to mention the monthly costs of maintaining the home. Buying a vacation home through fractional ownership is a great way to increase your buying power, lower the purchase price, and reduce monthly expenses.

At some point in our lives we seek to multiply our wealth in different ways. One of the most popular, and historically  safest ways to diversify and grow your wealth is to invest in real estate. 

For most people, this means purchasing a home to live in. Others  prefer to invest in a variety  of real estate assets and not just limit themselves to investing in a single property. Today it is easier than ever to invest in a second (or third) home without breaking the bank. One way to do this is through fractional ownership (also called co-ownership). 

Fractional ownership also makes it easier for foreigners to purchase real estate in another country in a simple and transparent way.

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In this article we cover the main differences between acquiring a whole home vs. purchasing a fraction of a luxury home.

Differences between co-owner residence and full ownership


Full: buying a complete property is the traditional way of owning a second home and has been around for decades. The home is 100% yours and you are free to do with it what you wish. Most people only use their vacation homes for a few weeks per year, so it is up to you whether you want to rent the home out for additional income, let family and friends use it, or simply let it sit empty.

Fractional: Buying a property in fractions lets you purchase the amount of the home that you plan to use. For example: rather than paying $800k for a full home in Acapulco only to have it sit empty for most of the year,  instead you can purchase a fraction of a luxury property (oftentimes a nicer home than you could purchase outright), for as little as ⅛ the cost. And you never have to worry about maintaining it while you’re not using it. That’s how buying your vacation home in fractions becomes the smartest way to invest your money. Fractions simply allow you to acquire a luxury property corresponding to the actual use that you will give it in the end.


Full: it can be difficult to find a “good deal” for an entire home in high-demand areas. Even then, purchasing a whole home is capital intensive and oftentimes requires financing. Finding 3rd party mortgage providers as a foreign buyer can be very difficult, so most buyers have to have enough cash on hand to make the purchase

Fractional: through fractional ownership you will have the opportunity to purchase  a luxury home for a much smaller investment. Because luxury homes appreciate at a higher rate than other homes, your smaller investment is more likely to grow in value as the home appreciates. It also opens the possibility of purchasing several properties for what you would spend on a whole home, further diversifying your investments.

Real estate investments and mortgage concept. House and stack of coins. Saving money for buy a house for family.  3d illustration


Full: you will own a complete property,  which comes with several advantages and drawbacks.  You do not share your property and you will be able to go on vacation whenever you want for as long as you want. But you will also  have to deal with all the headaches that come with maintaining a property, from cleaning and maintenance to renting the property out, to dealing with unexpected issues that arise. This is even more complicated if the home is far away from where you live or in another country. Oftentimes owners hire a property management company to deal with such issues, and this can eat into your investment really quickly.

Fractional: you own a part of a property, this means that you will have access to your vacation home for a certain period of time, depending on how many fractions you own For example, if you buy a ⅛ share of a home,  you will have the right to 44 days of use per year. You can schedule stays anytime you wish, from 2 days to 2 years in advance. Additionally,the maintenance costs are  divided amongst the other co-owners, so you only pay a fraction of the total cost. With Ancana handling all of the cleaning and maintenance and splitting of expenses, you get a turnkey vacation experience every time you use your home.

When you own an Ancana home, you can arrive knowing everything is in order, clean, and safe so that only you can focus on enjoying and creating new experiences with your friends and family.

hands handing over keys for property purchase


Full: More than 80% of vacation homes are concentrated in the range of $100k to $250k USD, and another 13% from $250k to $500k USD. Even for beachfront property in high demand areas, it is easy to spend upwards of $800k or more. And that is before the cost of renovating and furnishing the home. Plus the cost of maintenance, the purchase of furniture and other arrangements that have to be made to the property.

Fractional: On the other hand, in Ancana you can find fractional luxury properties from $77,998 USD for 1/12 fraction (such as Tepetate in Chapala), up to $470,246 USD for ⅛ fraction (such as Casa Palmar in Puerto Escondido). All these properties are furnished and already include legal and notary fees.

Property Casa Palmar, Puerto Escondido for sale by fractions through Ancana.
Property Casa Palmar, Puerto Escondido for sale by fractions through Ancana.


Full: Demand is strong and supply is highly limited, so vacation home prices are rising faster than primary residences. Depending on the destination, acquiring a complete property can have low liquidity rates and cannot be easily converted into cash in the short term. The higher the price of the home, typically the harder it is to sell given a reduced market of potential buyers.

Fractional: being a real estate, its value tends to be in sync with the surplus value of the area in which the property is located. The resales that are obtained from each fraction of the property obtain an additional 10% up to 30% on the original price.

Fractions purchased through  Ancana can be sold like any real estate. You set the price and  the gains are yours to keep. There are a few things to keep in mind when considering selling your fractional ownership. First, Ancana can help you with the sale given our extensive database of qualified potential buyers who are interested in the property. Second, since the price of a fraction is typically far less than an entire home, there are more buyers who can afford the transaction. 

Asian happy couple sign contract buying new home with realtor agent with smiling face at new home.buying new house real estate

Whether you ultimately decide to buy a fractional or whole property in your favorite vacation destination, both types have their own advantages and disadvantages. Depending on what your needs are, one of these options may be better suited to what you need. In the end, the best way to find out which option is right for you is by taking a tour of the property that most appeals to you.

Visit the official page of Ancana to discover all the available properties!

Owning a vacation home has never been this easy.

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Ancana Living © 2023

Ancana Living © 2023