Fractional Residences Explained

If you’ve been in the market for a vacation home in the past few years, you’ve undoubtedly heard about fractional residences. This new upscale spin on the tired timeshare offers shared, deeded ownership of luxury homes in some of the world’s most popular resort areas.

Fractional ownership promises five-star amenities and services, access to prime recreation—from golf to skiing to fly-fishing—and above all, the chance to own a multimillion-dollar residence, or at least part of one, for a lot less than the cost of whole ownership.

Why buy?

A share in a fractional residence is deeded real estate ownership that you can sell or pass down to your children, just as with a traditional real estate holding. The factors that distinguish fractionals from timeshares are not only a high level of luxury—and cost—but also greater access to the property, though these factors vary from fractional to fractional.

One notable perk of fractional ownership is that it reduces the hassles inherent in owning a vacation home—the management company takes care of maintenance and security. That means you won’t need to worry about closing the pool for the winter or hiring someone to look in on your home while you’re away.

As an added draw, most fractional developments offer an extensive suite of concierge services. Ski passes delivered to your door, a stocked refrigerator upon arrival and even help with your travel arrangements are all par for the course.

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