Fractional ownership is now available in Asheville NC, from around $129,000 for a luxury 1/10th ownership of a million dollar + condo.
Generally, this term refers to family and friends joining together to share ownership of a property - generally a vacation property or second home, as obviously with fractional ownership they only get to use it part of the time.
Most agree that fractional ownership started in the US in Rocky Mountain Ski resorts in the 1990s. It came about as developers realized that buyers of second homes, particularly those in resort areas, did not want the expense of purchasing and maintaining an entire home. Research firm Ragatz claims that there are over 250 fractional developments in NA in 2006. Note that Fractional Ownership usually includes a deeded ownership of the time - this differs greatly from TIMESHARE, where one is purchasing time, not a share of real property.
Fractional ownership divides a property into more affordable segments for individuals and also matches an individual's ownership time to their actual usage time. A fractional share gives the owners certain privileges, such as a number of days, weeks or months when they can use the property.
Private residence clubs are growing all over the world, which is basically the same as fractional ownership with the services and amenities of luxury hotels. In fact, some luxury hotel groups run their own private residence clubs. Often membership in private residence clubs offers members the right to use of properties in other areas, including worldwide in some groups. Vacation condos and homes can be converted to fractional ownership, subject to local rules and regulations that may or may not allow this type of ownership. There are many variations in the business model of fractional ownership, just like there are many differing types of property in different types of locations.
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