Yesterday we looked at financing fractional ownership. This can get expensive, since fractionals are often luxury homes, located in swank areas like Aspen and Sedona, and even a partial share in their ownership can be quite pricey. Timeshares are much less expensive, but they are more likely to depreciate in value over time, while fractional ownership is likely to increase, and allows you to build equity.
This, then, represents the biggest difference between fractionals and timeshares: ownership. A timeshare is like a rental, and in many cases, your use is limited. Fractionals represent ownership, and you can usually use your fraction up to 13 weeks a year, depending on how many others own a portion.
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To take it a bit further, the ownership in a fractional will incur greater expenses (maintenance fees) and give a larger value - proportional to its usage.
One question though, will it retain a better value as a resale as opposed to a timeshare?
Posted by: SellTimeshareGuru | November 13th, 2007 10:51 am |
Some of the other differences between fractionals and timeshares include:
1. property size - fractionals tend to be larger with more bedrooms
2. exchange - timeshares have thousands of properties you can swap into, fractionals usually have a more limited choice
3. services - many fractionals come with a large number of services and amenities included (in the annual fee)
Posted by: Sherpa | November 13th, 2007 11:05 am |
Fractionals and timeshares are both somewhat risky in terms of investing. If you don't have the money for a fractional (and it takes a lot for many of these luxury properties), a timeshare could work — if you plan to use it regularly.
However, the fractional is still a better value in proportion to usage, and timeshares have plenty of fees as well.
Plus, with the rise in popularity with fractionals, there are more swap out options becoming available.
Posted by: Miranda | November 14th, 2007 10:16 am |