Who doesn’t know someone who owns a country house or a weekend home? If you ask them, they’ll most likely tell you they use it no more than 28 to 35 days a year, that it ties up capital in an “asset” that requires high maintenance costs in property taxes, municipal fees, electricity, water, gas, gardening and pool service — not to mention unexpected repairs.
Fractional properties by Fractional Class make it possible to align your investment with the way it is actually used. A one-twelfth fraction of a property allows you to use it for the same proportion of the tourist year — that is, four weeks per year, one in each season. In other words, the same 28 days our friend mentioned, without owning a full weekend home.
Do you need more weeks? You can acquire two fractions to own one-sixth of the property and enjoy it for eight weeks per year, and so on.
In addition, you can create a financial strategy and allocate some nights or weeks for personal use and others for rental income.
What about maintenance costs? They are divided among all owners, in proportion to the number of fractions they own.
Furthermore, hotel-use properties typically have a maintenance cost equivalent to a percentage of the hotel’s rack rate in effect at the time the owner makes a reservation.
This cost, which can be considered an operating fee and/or usage fee, is allocated to cover taxes, maintenance of common areas, pool upkeep, insurance and unit maintenance, electricity, water and gas utilities, and hotel services, among other expenses.
Likewise, our fractional properties are marketed with membership in multinational vacation exchange companies such as RCI or Interval, which provides access to an inventory of more than 4,000 resorts worldwide.
So, let’s review the pros of fractional ownership vs. full vacation home ownership.
