Saving Money With Fractional Ownership

The marketing of fractional ownership has to date focused on a certain type of development, i.e. super-luxury resorts laden with facilities and services at a very high cost. This isn’t all it should be about. In a lot of ways it is potentially more benficial for people who don’t have loads of money.

Forget about anything you think you know about fractional ownership and consider the following:

The full text of this article is here

Neil

Is Fractional Ownership a Risk?

When we do anything in life we expose ourselves to risks. Walking down the street, driving your car, even staying in bed for the day all have associated risks. Understanding the risks associated with any decision is important because it enables you to make informed choices….

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Fractional Ownership – the Environmental Benefits

The potential for fractional ownership to transform life experiences via better affordability and variety of leisure assets is well know. A subject that is less-often discussed is the likely environmental benefits of widespread adoption of fractional ownership.

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Selling a Share in a Real Estate Fractional Ownership Scheme

Fractional ownership is a growing trend, but how do you go about valuing a fraction in an existing scheme for sale? What rules should be in place in a fractional scheme to prevent potentially disruptive new members joining it?

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Mayan Rivera Travel Guide

I’m removing some travel information that I had on fractional ownership news
and putting it on a blog – I’m experimenting the blogger, here is the address – Mayan Riviera Travel Guide

Neil

Fear of Fractional Ownership Will Keep You Prisoner!

OK, so a bit of an over dramatic title for this post (isn’t “Fear will keep you prisoner” part of the tagline for the Shawshank Redemption?) but there is a serious point to be made.

Whilst promoting a fractional yacht I came across a lot of resistance to the idea from people who already owned their yacht outright. “It can’t work”, the would say – “when you go to the yacht it will be dirty/broken/in the wrong place” etc. etc. Most of these comments seemed to be motivated by a deep distrust of people in general.

I think this attitude is wrong for a couple of reasons. Firstly any properly configured fractional ownership scheme should have proper change-over and cleaning arrangements in place (and penalties for breaches of the rules). Secondly, who are these people that they think are going to be wilfully destroying/abusing an asset that they own part of? Yacht charter/holiday home rental work very well even though the people concerned have no long-term commitment to the thing that they are using.

So fear of fractional ownership may not keep you prisoner but will certainly prevent you from experiencing a wider range of life’s experiences and pleasures. Generally distrust of people is a bad thing that shuts you off from some of the best things that life has to offer.

Neil

Fractional Ownership is (or Should be) the Poor Man’s Friend!

The marketing of fractional ownership has to date focused on a certain type of development, i.e. super-luxury resorts laden with facilities and services at a very high cost. This isn’t all it should be about. IN a lot of ways it is potentially more benficial for people who don’t have loads of money.

Forget about anything you think you know about fractional ownership and consider the following:

A. Think of something that you would like to own or use but can’t afford (it has to be something that you don’t need to use all of the time). Typical types of things would be leisure assets (second homes, yachts, caravans/RVs,tents), business (expensive and occasionally used machines), or functional items (a ride-on lawn mower, a garden shredder).

B. Assess how much this would cost you if you were going to buy it. If you would have bought something used then use this price, not the new price.

C. Consider how many people could realistically share the use.

Now divide B by C – doesn’t this make your proposed purchase seem more affordable? There is no reason why fractional ownership has to be about luxury (although that is very nice). It can save you lots of money as well.

Example 1: A family on a limited budget would like to save money on their holidays (or even afford to be able to go on one) by camping or caravaning. The problem is that a full camping setup for a family of 5 isn’t cheap if you haven’t got much money. The fractional solution would be to share the cost with 2 other families in their local area. They would still each be able to go on a 2-week holiday in the school Summer break and take turns at using the equipment through the rest of the Summer.

Example 2: If you enjoy yachting why not look at a fractional scheme for a used yacht. This can really bring yachting/boating within the reach of a lot of people.

Neil

Fractional Ownership Surviving the Credit Crisis

One area of the real estate market is bucking the generally negative trend, with values and sales volumes up. Fractional ownership of luxury real estate has been slowly gaining in popularity over the last 10 years or so, but now seems set to reach a tipping point and become a mainstream concept…….

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Neil

Fractional Ownership News