If you have been on the internet searching for homes you may have stumbled across a listing or two that said the home was being offered for fractional ownership. Your next question might be, “What is fractional ownership?”
Fractional ownership means that you share the costs of owning the home with other people. The number of people you share with depends on the home or unit you are looking at. Generally it is anywhere between six and 12 people. Chances are that you will own a deeded interest in the home as well.
Usage will depend on the unit as well. Whatever portion you buy will correlate with the amount of usage you will have. Many fractional ownership condos or homes have fixed weeks. This works well if you travel the same weeks every year. But, for most people this isn’t the case. For people with vacation schedules that change from year to year it would be best to find a fractional model that has a floating week schedule. Meaning that your weeks can change from year to year. The best option is where each owner gets a chance to schedule their own weeks and priority of scheduling between the owners rotates. That way you are more likely to get the weeks you want to vacation.
The best fractional ownership models also have options for trading with other owners parts of their usage time. Allowing you to visit more than one destination.
Most fractional ownership type models will have a maintenence schedule along with fees for taking care of the property. These costs will also be shared. A good maintenence schedule will have enough reserves to replace a water heater or a refrigerator, should they go out, and someone in charge of making this happen.
Typically in the fractional ownership model you don’t have to worry about too much. They are designed to make owning a vacation home easy and hands off. Some fractional ownership models allow you to rent your time out if for whatever reason something comes up and you can’t use it.
Bottom line is that fractional ownership is a great alternative to whole ownership for people who don’t want to have worry about maintenance, paying a property management company their fees for renting the home, or don’t want to spend the full amount of money on a vacation home that they will probably use for less than 6 weeks out of the year.
If you have any questions about fractional ownership, or would like details on what fractional ownership models are available on Kauai, please contact me. I would love to help you anyway I can.