Fractional Ownership vs Timeshare | Fractured Ownership Differences
What is the difference between fractional ownership and a timeshare? Although timeshare and fractured or fractional ownership are often used interchangeably there are a few differences.
To put it simply, with a timeshare you pay for the shared rights to use a property and with fractional ownership, you actually purchase a fraction of the property, own a deed and have real shared or fractured stake in the deed itself.
Is fractional ownership the same as a timeshare? Not exactly. Although conceptually fractured ownership are similar to timeshares, they are not the same as other types of timeshare ownership.
With a timeshare, you merely share the rights to use the property at certain times. With fractional ownership, you are not only paying for the rights to use a property, but are also an owner of a fraction of the property and a fractured owner of actual deed itself.
Fractional costs more than a timeshare since you actually own a stake in the property and its deed which can make fractional ownership a good investment.
Having a fractured stake in the deed means when the property value goes up, the value of your stake in the deed goes up as well so with fractional ownership you are actually invested in the property itself as opposed to a timeshare where you have no real stake in the property deed.
Since the value of real estate generally increases over time, fractional ownership is definitely the best way to go if you are looking for an investment and an increase in value of your assets over time.
Unlike fractional ownership, with a timeshare, you don't actually own a stake in the property or deed, which means the value of your investment doesn't increase over time as it would if you owned a fraction of the property or deed.
It is for this reason a timeshare is not a good investment and not the best to use for investment purposes. If you want to invest, you should go with fractional ownership instead as fractured ownership allows real ownership of the property deed.
On the other hand, timeshares are a cheaper alternative to fractional ownership which means that a timeshare is great for non investment purposes, such as having a home away from home, or passing on a legacy of family vacations to your children and grandchildren.
Need help understanding your timeshare better? Visit our FAQ Page on timeshares.