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Fractionals, Rentals, Timeshare Resale Review

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Posted on February 23, 2009

Fractionals have helped to build upon the already growing more positive image for Timeshare. In the early days timeshare got a negative reputation that came from poorly executed hotel converted products rather than today’s more purpose built product. So the upscale fractional image is good news for timeshare. Plus as a term fractional is a mere aptly descriptive term – a fraction of a whole interest. It also led the way for urban timeshare. And finally imitation is the highest form of flattery. The birth of fractionals is a testament to timeshare’s success as a great vacation product. Howard Nusbaum

Timeshare has always been a symbol of the American middle class, hit hardest by the collapsing credit market. Flattening like a flan in a cupboard, 2008 shriveled timeshare sales, with little or no financing for consumers in site. Timeshare and fractional ownership had been meeting the needs of everyone from the working class to the super rich. As fractionals evolve there will be more contemporary products suited for the middle class, blue collar worker.

But the concept has two types: Fractional or shared ownership, like traditional timeshare, and a rental agreement. Rental agreements tend to expire, with one party the owner, and the other the tenant. The fractionals are growing in popularity, leading to a more amiable attitude toward timeshare. Travel enthusiasts have found ways to enjoy the opulent luxuries of life, using fractional ownership to turn a lifestyle into a vacation.

The rapid acceptance of fractional ownership is fueled by the credibility and establishment of the timeshare industry. Timeshares have been trusted simply because of the untarnished reputation of fractionals. The popularity of this concept has increased since the recession spiked. Continuing economic troubles have restrained most consumers from investing in anything that needs expensive maintenance or that will most likely depreciate quickly, namely, timeshare. There are a number of schemes that consumers are investigating in hopes of luxury and savings that come with fractional ownership.

Art enthusiasts will often pay toward a pooled investment. When a period of investment is completed, members receive 2 pieces of artwork, or their investment back in cash. Investors often decide to make working part of the vacation. People will invest by laboring and living at a winemaker’s chateau for a few weeks a year. Some will simply buy into a wine fund, where the wine in return is typically the only expected payoff.

Many websites will offer shares in luxury yachts of all sizes, softening the price of such an extravagant investment. Similar sites will allow consumers a chance to buy into shares of aircraft. Corporate jet shares are popular with businesses and pilots who share ownership while enjoying a multimillion dollar piece of freedom.

Timeshare Broker Associates is just one option of the many fractional opportunities out there – this time for vacation ownership. Give us a call at 877-624-6889 if you’d like to find out more about fractional ownership opportunities on the resale market in resort accommodations.


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Bryan Connelly