Are “FRACTIONALS” (Hotel/Condo Luxury timeshare Rentals) a good investment?
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August 11th, 2008 at 11:27 am
Almost anyone will tell you that they are not a good investment. The only time that they make financial sense is if you REALLY like the vacation condo and definitely want to spend years of future vacations there. Essentially, all you are doing is pre-paying for future vacations at the same location.
August 14th, 2008 at 4:02 pm
Definitely not. Invest the money and maintain the flexibility to vacation anywhere you want.
The maintenance charges are unpredictable and out of your control. They are hard to sell.
August 16th, 2008 at 5:18 pm
a Fractional Ownership is the same as a timeshare except timeshares start at one week and Fractional Ownerships at one month.
Just like you said it, they are for high end renters with no financial problems and that would like to travel to the same place every year for a few months.
This system makes vacation home ownership possible for many people who cannot afford a second home or who otherwise would not be able to enjoy such resort facilities. It is important to remember that purchasing a Fractional Ownership should never be viewed as a financial investment with the expectation of gaining a profit in either reselling it or renting it to someone else. Fractional Ownership is an investment in lifestyle, in future holidays, in family time together, and when viewed that way it can be a good investment indeed.
August 19th, 2008 at 6:50 am
A fractional is very different from a timeshare. And, they may or may not be a good “investment” depending on the property location, quality of property management, and a lot of other factors. No easy answer except to investigate what other ones are selling for by the owners. An often used timeshare glossary is linked below for more info.