Fractional Ownership: a second home… and a third home… and a fourth…

For many families, fractional ownership allows efficient and affordable ownership of a vacation home. It’s a concept that just makes sense — why own 52 weeks of a second home when you’ll use it just six weeks?

Expanding on the concept, some families have elected to own more than one fractional home. For example, owning at a location focused on summer use and at a winter location. Or, owning a fractional within driving distance for long-weekend use and also owning a fractional in a “fly-to” destination. Owning in more than one location offers diversity in use and scenery and STILL costs much less than owning a 52-week vacation home.

Through the use of exchange, your second home becomes your 3rd home… or 4th home. If you bought your second home (or third home) for its location and quality, there’s an excellent chance that another vacation homeowner will enjoy your home as much as you do and exchange is an excellent way of expanding your horizons by using the keys to your home to unlock doors worldwide.

By exchanging, you’ll avoid the hassles of finding a rental and dealing with high rental rates and damage deposits. You’ll exchange with a family that a) owns a vacation home and b) will treat your home with the same respect that they treat their home. You’ll often exchange for a home that’s a second home and not just a scantily-stocked vacation rental.  Calphalon in the kitchen, luxury towels, bikes in the garage, toys for the kids, a collection of movies and sometimes even a vehicle in the garage are often the hallmarks of a true exchange home. Added to that, your exchange family will often share their knowledge of the area so you’ll have a good idea of the best activities and restaurants.

What’s not to like about fractional? Probably one of the most important parts of your decision is the use calendar, sometimes called the rotation. Be sure to carefully consider the rotation and if impromptu use is allowed. You’ll also want to consider if you’ll be able (or want) to rent your unused time. Price is also a consideration, as fractional often costs a slight premium to whole ownership (ie, four quarter shares as sold for more than a full ownership would cost). You’ll also want to consider the management of the fractional — will your visit be headache free (full management) and what is the cost associated with management.

In closing, fractional is an incredible option in vacation home ownership. It’s a concept that began in the 1980s at Lake Tahoe, pioneered by Gordon McMahon (who continues to develop and sell fractional homes on the Oregon Coast) and has spread worldwide.

As one fractional developer puts it: “Lifestyles of the smart and practical” is an excellent description of fractional ownership.