Are you considering investing in a share property ownership plan, and trying to decide between fractional properties and traditional timeshares? Shared ownership is a similarity between both types of investments, but there are big differences to know about that differentiate the two investment types. Here we will discuss some of the major differences between fractional ownership and traditional timeshares so you can decide what is right for you.

Smaller properties

In general, traditional timeshares can have up to fifty-two owners per unit which means each owner only gets to spend one or two weeks per year at the property. On the contrary, fractional properties are designed to only have about four to sixteen owners per unit. If you are looking for the chance to spend more time per year at your investment property, it makes sense to purchase a fractional property versus as traditional timeshare.  On average, fractional owners vacation between three to twelve weeks each year at their property compared to traditional timeshare owners who only get one week or two. That’s a big difference!

Wear and Tear on Property

Traditional timeshares experience more wear and tear on their units due to the fact that there is so much turn over with a new family coming in to vacation each week. As everyone has different standards of how to treat and respect property, it is more likely that a traditional timeshare will become damaged much more quickly than a fractional property who sees less traffic.  Also, because of the smaller number of owners per property, owners of fractional properties report having a more relaxed experience as the staff actually gets to know you on a personal level when you are spending more time at the property. Timeshare owners come and go so fast, it is virtually impossible to feel at home and become better acquainted with the staff.  If you are looking for a better quality investment, fractional properties usually have superior construction, higher end decor, and top quality fixtures compared to traditional timeshares. Lastly, fractional properties tend to have a better location within the resort versus a traditional timeshare unit location. So we can see fractional ownership is the better option if you are looking for quality…now the question is, can you afford fractional ownership?

Income Requirements

Thes required minimum income level needed to quality for fractional ownership is much higher than the requirement for a traditional timeshare. You need to make at least $150,000 per year to be eligible for fractional property ownership. Compared to traditional timeshares where you only have to make $75,000 per year, this is quite a big difference in income levels. Inevitably, the individuals with a higher income are used to a certain standard and demand higher levels of service for their investment. Fractional owners are generally more demanding than traditional timeshare owners and expect personalized service and attention to detail in all areas related to their fractional property. It makes sense that a higher standard is to be expected when the investment level is much higher. As they say, you get what you pay for!   

Intimate Environment

Most timeshare developments have hundreds of units at each property and are large developments with many families coming and going all the time. This busy, fast paced environment may not be for everybody. If you are looking for a more intimate and exclusive environment, fractional properties would be a better fit for you. As timeshare owners feel less connected to their property because they can only spend one week per year at the property, fractional property owners visit anywhere between three to twelve weeks each year and feel as if their fractional property is a second home.

There are many notable differences between traditional timeshare ownership and fractional ownership. We have covered a few of the main differences to help you make a decision if you are considering purchasing a traditional timeshare or fractional property. Which shared property investment type are you most drawn to?