Converting Your Vacation Home into a Fractional Residence

[Jeffrey Cerra]

With today’s inconsistent and sometimes stagnant real estate market the priorities of both homeowners and sellers has changed a great deal. In today’s market it is difficult for home owners to sell their home for its true value while buyers often hold out for a lower price which further devalues many a home. Even those buyers who target vacation properties have become much more conservative with their finances as the costs of maintaining such properties and dealing with a deficient number of prospective renters has made would be owners wary of owning such a property in these troubled economic times.



Those who are on the verge of owning a vacation home but are finding it difficult to part with their capital can take comfort in knowing that there is indeed an option available to owners of vacation properties that will allow them to retain the benefits of ownership, all the while reaping the benefits of a seller. This involves converting your vacation home into a fractional property. Fractionalizing your vacation home will allow you to capitalize on the appreciation your home has accumulated over the years all the while allowing you to retain partial ownership of the property. Additionally, selling off fractions of a vacation home, may allow an owner to pay down or even pay off the loan they originally took out for purchase of the home. Furthermore those who fractionalize their vacation homes continually enjoy the benefits of home ownership while reducing their annual costs by as much as 90%. With all of these benefits available to vacation home owners many have begun fractionalizing their properties.