A recent article in ReachTogether - Fractional Ownership News, highlights the strength of this market that is still fairly new to Kauai, but growing. Offering a unique advantage to both buyers and sellers, the Kauai fractional offerings are a natural way to meet the needs of a growing demographic. As baby boomers retire, and find more time to travel and relax, owning a second home without the headaches and expense of year-long maintenance and management is a perfect solution. Read more....
For more information about the Kauai Fractional Resort market, visit www.ResortSecondHomes.com.
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I do not see the difference between fractional ownership and time shares. Is there a significant difference?
Hi Robert. That's a common misunderstanding. Timeshares are basically vacations with a deed. Values depreciate immediately after purchase, but many owners continue to be very satisfied due to the lifestyle enhancements trading and traveling provide. Fractionals are an off-shoot of tradtitional real estate. You have a fixed deed for a fixed time at a fixed property. Another way to look at it is a smaller version of what happens with condos. When condos first started, people thought they were weird. Take a property, and divide it into different ownership units. Now you take it one more layer, and divide it among several owners. There are governance documents, deeds that are unique to each owner, and legal separation between owners just like with condos. National trends show that values of fractional real estate tends to mirror that of the regular real estate market in the same area. Even though our market is young, we have found that to be true on Kauai as well. Love to talk to you more...please feel free to email or call anytime.
Hi Susanna
I would just like to agree with what you say above about the difference between timeshare and fractional ownership. In the UK, timeshare entitles you to stay for your allocated week for a period of years (often 20 or 25) but you don't actually own anything. It is like paying your holiday (sorry, vacation!) rental for the next 20 years in advance. At the end of it you own nothing. As you say (despite the horror stories about timeshare) many people are happy with it - I have some friends that love their timeshare!
With most fractional ownership schemes you actually own your deeded share of the real estate (sometimes you might own shares in a company that owns the real estate but this is almost the same thing). You own your fraction of the property for as long as you want to. The fraction should appreciate in value over time and could be left to your children or whatever.
Do check the details of any fractional scheme you look into to the details to make sure that a timeshare developer isn't trying to sell their development as fractional! The key point is to find out what you OWN.
Also, thanks for the reference to Fractional Ownership News
Neil
I am looking for anyone that may have Fractional Contracts for the state of GA.