Fractional Ownership Vacation Properties

[Jonathan Abbott]

Good evening fellow Real Estate Investors! 

I come to the forums today seeking any information, opinions, and possibly experience in the field of fractional ownership as an investment! 

You see, my family owns a beach house and then divides it upon ourselves throughout the year. Recently, we have found ourselves using the property only a few weeks a year. Definitely not enough to justify the expenses that go along with owning such a high end vacation property. I recently stumbled upon a listing offering 4 weeks on a rotating schedule every year for a very reasonable price, around the value of 1/13th of the property with a small premium attached. At first I was thinking this just seems like another timeshare scam wrapped up into a different, more deceiving package but after speaking with the agent they assured me that after purchasing the fractional share, I would be deeded 1/13th of the property. Now this deal did attach a very small monthly payment to cover the HOA between all owners.

I come to the biggerpockets community to pick your brain on not only purchasing one of these for myself, but instead using this fractional ownership as a new investment opportunity. The opportunity grants those who couldn't normally afford such a highly priced property a chance to get in on some of that luxury. Yes, I am aware that this option might not be for everyone, especially those who like the freedom of choosing which weeks they intend to use the property, but it may cater to those who consistently visit the same place a few times a year and would like to own their own place without the normally enormous upfront cost. 

Let me know what you all think! Be honest! 

Thank you all and Happy New Years! 

- Jonathan