November 23, 2010
Fractionals Smactionals - It's timeshare.
Should I be looking at fractional ownership? Well I'm glad you asked as I would argue that I know more about this topic than your average bear. There are several fractional ownership developments in Victoria. The answer, of course, is - It Depends. Another clear answer from yours truly!
Depends on what? (Insert adult incontinence joke here). It depends on why you're asking. Let's be clear. Fractional ownership is timeshare. Plain and simple. Fractional ownership just sounds better. In the past decade quarter shares have become particularly popular, as have 10th, 12ths, halfs and so on. Guys selling these developments fall over backwards not to use the timeshare word, but if you spend time in a unit and someone else spends time in that same unit, and you both own it, then you're timesharing.
This is not a bad thing. But I know it drives the "fractional" people crazy when I talk about it so I tend to ramble on about it.
Back to the question. You should be looking at fractional ownership situations ONLY if you have found a place that you would like to stay during that time of year, or visit repeatedly, or understand how (and realistically if) your ownership can be leveraged into other destinations you might want to visit through some sort of trading program, ( I've heard it being called reciprocal visitation privileges - like it's a country club membership - it's not by the way). If you would like to spend January, February and March in Victoria instead of anywhere else in Canada, and who wouldn't really, then yes, you should consider fractional ownership.
If you are thinking that fractional ownership will pay for itself by using only a portion of it and then having the rest of the time rented out by the management company, or if you are thinking of it as an investment vehicle, or if you are thinking you could buy locally but only use it in all the nice places you want to visit - then emphatically NO, you should not be thinking about it. IT MAY PENCIL OUT IN THE PRESENTATION CENTRE BUT IT WILL RARELY DO SO IN REAL LIFE.
Remember - Fractional real estate is real estate - find a real estate professional who is knowledgeable in this field if you are considering a purchase - and not the happy people at the development, I'll tell you a secret - They work for the developer!
How's that for an answer - clear enough?
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