What is Fractional Ownership?

Have you heard the term "fractional ownership" regarding an investment property? Fractional ownership in the Caribbean is possible with a detailed knowledge of the process and a bit of realtor assistance along the way. So, keep reading to answer the question "what is fractional ownership" and learn how you can find Caribbean properties for sale. 

Then, if you like the idea of fractional ownership for your dream Caribbean vacation property, you'll need a couple of things. First, consider who you get along with and would be willing to share a home with. Then, locate a real estate agent and find the perfect investment property for vacations you'll not soon forget. 

Defining Fractional Ownership 

Here is a definition found on Wikipedia, "Fractional ownership is a method in which several unrelated parties can share in, and mitigate the risk of, ownership of a high-value tangible asset, usually a jet, yacht or piece of resort real estate."  

And there are several reasons fractional ownership might work for a person looking for a Caribbean vacation home.  

• Owning a fraction of property will be a fraction of the cost. 
• The place is technically yours, along with the other investors. 

• Maintenance costs are shared among the investors. 

Therefore, if you will not be in the home full time, owning a Caribbean beach home may be more accessible when you share the burden with a few others. 

The Move Toward Fractional Ownership 

In the 1970s, timeshares became all the rage. It allowed people to guarantee a vacation in a particular location without being there full time. Then came the VRBOs and Airbnb's of the internet. But this way of ownership has its drawbacks. It can be an owner's nightmare, from bad renters to the continual upkeep of the property. 

Then in 2018, fractional ownership became a concept that has continued to gain popularity. Here is how it works. 

When you take on fractional ownership of a property, you own a piece of that property. Typically, the deed is split. Then four owners would share the place for vacations as well as costs. Owning a home in this manner provides for lower costs to each investor. And you have full access to the house within the agreement made by the four or so owners. 

A Look into the Pros and Cons of Fractional Ownership 

Like a timeshare or a vacation rental property, fractional ownership has pros and cons. Here are a few for you to consider before diving further into searching for a vacation home. 

Pros: 

1. Fractional ownership allows you to get the home you want for some of the cost. 
2. A vacation home can sit vacant a lot of the year. If more than one family uses it, the doors and windows will be opened, the faucets turned on, and appliances used more often. 
3. Share the burden of owning a house with others. That way, you only pay a percentage of the management fees and maintenance costs. 

Cons: 

1. There can be some disagreement between owners on furnishings when things need to be replaced, and so on. You'll need to be sure you get along with the folks you own with. 
2. Some communities have rules against this type of deal. 
3. Selling your portion of the place can be tricky, depending on the reason and the other owners. 

How to Find Caribbean Properties for Sale 

If you live on any of the mainlands full time, it can be a real chore to take the time to look for a Caribbean vacation home. But that is just what your Kayifi realtors are here for. We are your Caribbean Connection. 

Kayifi provides the platform for buyers, sellers, renters, and landlords to easily access the Caribbean properties for sale and make that essential client-agent connection. 

CITED: equityestatesfund.com, luxuryfractionalguide.com