FAQ's about Fractional Ownership

Q: Can a foreigner own property in other countries? 

A: Yes, foreigner's can own deeded and titled property. Since your ownership is deeded, it is not only yours to enjoy for a lifetime; it is yours to give to your heirs. Every Share/Fraction will be conveyed with a fee simple clear title. This will insure your Share/Fractional interest is under your control.  With fractional ownership, you own a share/fraction of an exclusive property. You are buying your property in partnership with 12 others who share the cost with you. You can sell your property at any time, at any price, bequeath your interest to your heirs, rent it, allow friends to use it and invite guests to share it. It is maintenance-free luxury living at a fraction of the cost of owning or renting a vacation property. And it matches your investment to the amount you actually want to use your vacation property.

Q: How many share/fractions will each residence be divided? 

A: Depending on the program, each unit is divided into fractions, allowing you a certain number of weeks per year, but the eventual number of owners for each luxury residence may be fewer, as many members can purchase more than one fraction if they choose. We will use 4 weeks a year in this example.

Q: Is fractional home ownership like Time Share?

A: In some ways it is similar because of group ownership. However, fractional ownership owners who are seeking extended luxury vacations, have access to their luxury residence 1-4 weeks per year. While there is usually an exchange option available; it is of much less appeal to a fractional home owner because our owners buy for the quality of life it affords them. Luxury fractionals differ greatly from old-style timeshares. In traditional timeshare developments, there are only two types of purchases: Right-to-Use or Fee-Simple. Right-to-Use, meaning the owner has the right to use it for a period of time and then it reverts back to the developer. It is similar to a vacation club in that you never actually own the real estate. Fee-Simple, however, represents ownership, i.e., the owner(s) receive a deed and title with their purchase. In addition, there are three major opportunities in shared/fractional ownership that are not possible with traditional timeshare:  Value appreciation: A fractional has the capacity to appreciate or depreciate based on market swings. However, history to date has shown only increases. Our properties are managed by our developer/builder, which eliminates many headaches of second-home ownership.  In addition, luxury fractional condo resorts have historically appreciated on a par with whole ownership condominiums.It all comes down to location, location, location! Each property is unique in terms of location, quality of construction, services offered, and amenities. Real estate values continue to rise according to current market values. Financing: Fractionals can be mortgaged over a period of years if necessary, at an interest rate similar to that for a primary residence.

Q: What is fractional ownership?

A: It is an exciting and fast growing concept in luxury vacation property ownership. Think of it as you and three friends buying a vacation home together. Each owner has the ways and means to own a vacation home, but not enough time to use it as much as they'd like. Since each owner enjoys the benefit and convenience of having access to the vacation home for a fraction of the year. Only a fraction of the property is purchased. Their investment and ownership is matched to the expected use, and the costs are kept lower by paying only for the portion that actually used. The concept of purchasing only what you need is perfect for people who wish to own a a piece of paradise. You'll have all of the luxury associated with spending time in your resort proeprty, without the hassles normally associated with owning and maintaining a vacation home. Your fractional residence is professionally managed and maintained by the development company.

Q: Is my Fractional residence tax deductable?

A:  Fractional ownership has all of the tax advantages of second-home ownership, e.g., interest on the mortgage plus property taxes should be tax deductible, along with certain other expenses. Of course, we advise potential owners to check with a C.P.A. or tax attorney for the positioning of this asset.

Q:  If I purchase more than one fraction, in my residence, may I sell part of it in the future? 

A:  Yes. The beauty of fractional ownership is the flexibility it provides in these and many other ways. You can sell it, will it, transfer it into a trust, or donate it to a charity at any time.

Q:  Do I purchase an interest in a specific unit, or will my fractional vacation home vary from visit to visit?

A: You purchase a fractional interest in one specific residence and this will be your luxury vacation property for all your visits. 

Q:  How often can I use my residence within the fraction I purchase?

A: You may use your residence vacation home 1-4 weeks per year, again depending on the program, without restriction as stated within your ownership title.

Q: What are my rental options for my residence?

A: You have the option to rent it yourself, or put it in the resort rental pool.

Q: Why should I buy a fractional vacation home?

A:  Many people recognize that they are just not able to use their vacation homes as much as they would like. For many people, one to two fractions, representing four to eight weeks matches their available leisure time. With fractional real estate, you are able to match your investment with the quality and level of luxury you want for the time you actually plan to use your vacation home. In addition, your property is professionally managed and maintained in your absence and ready to live in upon your arrival. A 1/13th interest entitles you to 1-4 weeks of personal usage per year.  In the interest of fairness, and to assure that you have equal access to each of the seasons, those 4 weeks are spread out rotationally throughout the year in a predetermined fashion.  We call it a cycle.  You will know what your cycle will be at the time of purchase.

Q:  Do I get the same weeks each year?

A:  It depends on the resort program.  One expample is:  In the year you purchase you may choose a particular cycle you wish to start with.  Each year thereafter your cycle will adjust by one week.  This insures that all co-owners have equal access to the prime weeks over a period of a year.  Your sales representative can furnish you with a written schedule so you will know the exact weeks available for your personal use, even years in advance. A 1/13th interest entitles you to 4 weeks of personal usage per year.  In the interest of fairness, and to assure that you have equal access to each of the seasons, those 4 weeks are spread out rotationally throughout the year in a predetermined fashion.  We call it a cycle.  You will know what your cycle will be at the time of purchase. Some programs allow the owner to use the same weeks every year.

Q:  What if I choose not to use one or more of my weeks? 

A:  You have many options.  First, you may choose to leave it vacant that week.  You may also allow personal friends or family to use your unit.  You may also choose to trade that week for another week that better fits your schedule, this allows flexability with your usage.

Q:   If I purchase, will you reimburse me for this visit?

A:   We will reimburse you for the entire cost of your trip to inspect the property if you wind up purchasing, including all the tours you take, the food and travel, up to $2000 for the family.