The Benefits of Fractional Ownership in Private Residence Clubs

Fractional ownership of vacation homes, also called Private Residence Clubs, are a new concept that lets you to take advantage of four to 12 weeks of home ownership privileges each year at a luxurious, high-end resort at a fraction of the cost of total ownership.

A New Method to own a vacation home For the Special Few: Fractional ownership of vacation homes, also called Private Residence Clubs, are a new concept that lets you to take advantage of four to 12 weeks of home ownership privileges each year at a luxurious, high-end resort at a fraction of the cost of total ownership kingdom valley.

If you'd like to own an extravagant second home with personalized services and situated in a luxurious resort area but you're unable to justify the cost since you'll only be using it just a few weeks or months during the season, then this type of arrangement in real estate may appeal to you.

Amenities Galore

The majority of private residence clubs provide an array of amenities. These could include an extravagant spa and clubhouse, as well as five-star hotel services, which you'd never expect to find in a completely owned vacation home, high-end condo or timeshare.

Imagine this: You're planning a trip and make a phone call to the staff in your private residence club house. If you'd like the staff shop for your food, dry-cleans the clothes you wear, schedules your restaurant reservations, heats your private pool and places knick-knacks and favorite photos of your family members at your residence. Arrive on arrival at airports by a personnel person who will take you to your residence where the freshly detailed Jaguar is waiting in your parking lot available for your use.

What do you think? Private residence clubs are NOT your ordinary second home.

Outstanding Locations

Fractionals or residential clubs have been popping up in some of the most exclusive, world-class resort destinations around the world. St. Thomas, Virgin Islands, Puerta Vallarta and Mexico are popular locations.

The U.S., the first fractional ski areas were the major ski areas in the west, specifically Colorado where real estate was so expensive that wholly-owned second homes were unattainable for most people. Then they expanded to Northeastern ski areas. Since then, fractionals are appearing in golf-oriented communities such as Hilton Head Island, South Carolina as well as popular beach states like Florida.

The most well-known fractional properties are located around Jupiter, FL; Aspen Highlands, Bachelor Gulch, and Aspen Snowmass, CO; Lake Tahoe, CA; and Whistler, British Columbia. Fractionals that are located within areas in the U.S. usually offer good accessibility to major airports which facilitates easy transportation arrangements.

Management by Five-Star Companies

The most important factor in the success of fractionals is their professional management. Most are operated by well-respected hospitality corporations that are recognized worldwide for their world-class hotels. Some of them include Ritz Carlton, Four Seasons, Starwood, Intrawest and Millennium, companies known for their five-star facilities and services.

Hassle-free Ownership

Part of the appeal of fractionals is that they are completely hassle free. Alongside having a staff of personal service at your disposal and a private residence club you do not have to worry about repairs, maintenance or cleaning. Everything is included in the price as well as annual fees, and is managed by a professional management company.

Appreciation Potential

To date there have been very few fractional resort developments. The demand for them is very high. It is expected to see substantial appreciation, not the normal depreciation when you buy timeshares.

Real estate experts believe that the prospect of appreciation for investments looks promising. It is possible to expect at most a parity in appreciation with other real estate within the resort area where the fractional is situated.


To purchase a fractional you pay a one-time cost, and then an annual upkeep fee that covers all of the expenses for property ownership and the use of it and its services.

What are the costs for fractional shares? Prices differ based on the amenities, size and location of the individual property. However, the majority are between $100,000 and $500,000. Be aware that these are truly top-of-the-line homes that would cost you up to five times more if bought as individual homes.

Comparison of Fractionals to Timeshares

What are the differences between fractional fractions and timeshares? They're really not. Fractionals are much more luxurious and include many more luxury options and facilities than timeshares. They usually have bigger homes, usually having three or five rooms. They usually permit you to use for one to two weeks in the year. Fractional timeshares can be used for between two and 13 weeks. They do not have necessarily be in consecutive week. Select the weeks you'd like.
In terms of financing, obtaining the bank or mortgage company loan for a timeshare can be difficult. The rates are very high regardless of how good your credit. It's due to the fact that timeshares tend to depreciate over time. On the other hand, mortgage companies view fractionals as an asset that appreciates and treat them the same way as any other second-home purchase.

Why do fractionals tend appreciate while timeshares usually decrease in value? There are a few reasons. If you have fractionals, more the money paid to buyers goes towards premium finish along with "bricks and mortar" instead of. commissions on sales that can be as high as 40%-50% with timeshares.
Furthermore, timeshare values have traditionally been low because of the high volume of sales on the market, and a constant development of new products. In reality, the secondary market for timeshares has not really grown.

In contrast, there is some fractional products available. Most likely, that number will remain small since fractionals are made in the most desirable, sought-after locations. Thus, demand exceeds supply, which leads to the appreciation of property.
Comparison of Fractionals to Condo Hotels

Fractionals (private residence clubs) differ from condo hotels in the sense that you can choose a certain duration of time you can stay at your home. Condo hotels are in actual condos within hotels. You can utilize your unit anytime you want you want, and add it to the rental program if you're not using it. Fractionals do not offer the rental program.

Fractionals are generally larger than the majority of condo hotel units. Most fractionals offer between three and five rooms, and the majority of condo hotel rooms are studios, one bedroom as well as two rooms. Currently, most condo hotels are situated in Miami and other surrounding cities within South Florida. Fractionals are prevalent on the West Coast, particularly in ski areas. But both kinds in real estate are rapidly gaining popularity and soon there will likely be more of a supply across the country to meet the growing demand.