5 Reasons Why Fractional Ownership Vacation Homes Make the Best Second Homes

April 7, 2022

It’s fair to say that the last few years have made us look at our work/life balance and appreciate that little bit more the quality time spent with loved ones. Online searches for real estate and vacation homes are consistently increasing, but so are the price tags.  Check out 5 reasons why property investors and second home purchasers are considering buying fractional ownership vacation homes.

 1. More Luxurious

How does owning a slice of that dream property on your wish list for less than it would cost you to buy an average vacation home outright sound to you? Maybe it’s the destination you love and a place where you’ve always longed to own real estate but just can’t find the right property within your budget? Why compromise?

You don’t have to forfeit luxury or facilities when buying your vacation home either – remember you’ll own this for years to come and want to feel excited every time you arrive. Suppose your second home budget doesn’t extend to having that insta-worthy heated infinity pool or state-of-the-art kitchen. Why not buy a share of that dream property? Fractional ownership vacation homes can offer a solution to those who can’t afford or don’t want to invest all their money in one property that probably won’t be used for more than four weeks a year. The aspiration for a luxurious vacation abode situated in an exquisite location can become a reality when looking at co-owning real estate through fractional ownership.

The best fractional ownership properties attained by trusted developers in this area of the vacation home market tend to be high-end both in build and value. Situated in idyllic parts of the world and offering luxurious interiors and stunning exteriors, expect to see modern or sympathetically restored buildings of historical significance and fully equipped with all the mod-cons required for that home-from-home experience. With a lower acquisition cost than buying a property outright, it makes sense to buy for what you will use and level up to your dream property, transforming how you spend your vacations.

2. Less Stress

It’s vacation time! The flights are arranged and now to the list of everything else that needs to be taken care of before you fly off on your much-needed vacation. You know that you’ll make it, and once through the airport, you can start to relax into some long-awaited R&R. That’s so long as your vacation home is ready for you.

  • Has it been empty for a while?
  • Will there be any repairs that need attending to when you get there?
  • Will it need cleaning?
  • What about the bedding and towels?

These are some of the many tasks that need seeing to when you own a vacation home outright. Unless there’s a local company you’re regularly paying to look after it when you’re not there, the chances are that you’ll lose a day on either side of your trip getting the property ready and closing back up again.

Fractional vacation home ownership can give you a stress-free start and end to your time away. Have peace of mind knowing that you have little to think about as soon as you board the plane except for all the exciting activities you’ll do on vacation. One of the enormous benefits of fractional ownership is that every aspect of the running and managing of the property is taken care of through the property management company. Hence, there is no cleaning when you arrive – walk into your sparkly clean home, complete with freshly laundered bed linen and towels.

Fractional ownership properties will typically include property management services to cover maintenance, upkeep, utilities, pool cleaning, estate management, insurance, local taxes, and everything connected to the smooth running of the property. If you’ve called ahead for some provisions, you can literally step into your stress-free vacation the moment you walk through the door!

3. Less Worry

The sun sets on your final day, and as your vacation draws to a close, it’s time to pack up and leave your home away from home. With new memories made and quality time spent with family or friends, what would be better than making the most of your last day and simply closing the door until your next visit? Part ownership of a vacation home means that you can do just that.

There’s no worry of your house sitting empty for long periods and falling into disrepair with a fractional ownership property. If you’re not sure when you can come again, rest assured that the property management team will take care of everything for you. Maybe your plans have changed, and you’re not able to visit again this year? No problem, eliminate the stress of having to visit by renting out the time you don’t use at your fractional ownership home. Again, this is another benefit of the property management company who will usually take care of this for you, generating rental income for the times you don’t use the property and alleviating the worry of whether to leave your property empty or begin the time-consuming process of trying to rent it out along with navigating the local taxes.

4. Less Burden

With hectic daily lives, people who want to maximize their vacation time and leave all the hassles that come with owning a second home to someone else are realizing the potential in fractional ownership of real estate. Not only can you buy a more expensive property for a lower acquisition cost by co-owning a luxury vacation home, but you, therefore, get to share the running costs with a group of like-minded co-owners.

With shared ownership of a vacation home, owning a share of these next-level homes means you also get to share the burden of homeownership. By purchasing your share, you become one of several property fraction owners (typically ten or twelve), resulting in all the costs associated with the running and general upkeep of the property not being your sole responsibility. Once a year, you can expect to pay your share of the annual running and maintenance costs. All local taxes, insurance, and other services included with the property management company are detailed in the yearly expenditures. The final amount is equally split between the owners.

Sharing the burden of responsibilities that come with owning a second home means that you can banish the worries of remembering to renew the insurance, pay the utilities, check for local taxes, and so on, as all these will be done for you. You simply pay your share every year.

5. More Fun

With countless studies carried out over the years, there are numerous statistics online that point to multiple health benefits associated with taking vacations each year, including better mental focus, improved sleep, reduced heart disease risk, improved productivity, and the list goes on. It makes perfect sense that our stress levels decrease while doing something we enjoy and having fun. If you’re looking at fractional ownership real estate for sale, then there’s one of two things happening:

  • You’re looking to invest in something for the future where you can see yourself relaxing and enjoying stress-free moments in a country and location that appeals to you.
  • You want to lessen your current daily pressures by part owning a vacation home in a destination you wish to visit and are keen to explore every year.

Both options fit the fractional ownership model of co-owning a luxury property for less. Still, the additional experiences often increase the fun factor alongside the sensible method of how to purchase your second home. Often these properties are chosen by the developers for their proximity to notable locations or hidden beaches and unexplored rural treasures. Maybe a beachside property and accessibility to an array of water sports or a countryside location where you can enjoy immersive local cooking classes? You can expect more when you buy fractional ownership vacation homes. Fun may be that long-awaited quiet moment sipping a glass of the region’s award-winning wine beneath the shade of the olive trees on the property’s estate. Perhaps it is spending time laughing with loved ones around the inviting infinity pool or watching the sunset on the sumptuously furnished terrace.

With the upward trend in the popularity of fractional ownership vacation homes, we can see that more and more people are looking to simplify their lives and opt for a simple, stress-free way to own a property abroad.

Find out more about fractionalized assets with The 2022 Definitive Guide to Fractional Ownership.

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