Fractional Home Ownership and Private Residence Clubs

Fractional Ownership vs Private Residence Clubs
Whats the Difference?


The following page provides helpful research and analysis clarifying salient characteristics of traditional Fractional Home Ownership and Private Residence Clubs.


DEFINITION: These are both forms of Fractional Ownership, in which a group of 10-15 owners share the costs and use of vacation property usually offered in a resort-hotel or luxury home. Fractional Ownership intervals are smaller as people generally buy only what they will use. This type of ownership is commonly offered by a real estate developer or hotel company. Typically, each co-owner owns a percentage of the property and is shown on the title and deed as an owner.

Private Residence Clubs are a more exclusive form of traditional fractional ownership.

Lack of clarity
Both Fractional Ownership & Private Residence Clubs (PRC’s) offer shared real estate ownership in a luxury vacation asset which is typically located in a resort. The distinctions between Fractional Ownership & Private Residence Clubs are unclear to most people. Furthermore, PRC’s are commonly confused with Destination Clubs. Generally speaking, PRCs are of a more exclusive nature than Fractional Ownership with fewer owners and brand name sponsors.

KEY CHARACTERISTICS
Fractional Ownership
Fractional Ownership properties offer equity for a fraction of the cost and no maintenance responsibilities.
Considering the average vacation home buyer uses the property just three to four weeks a year, Fractional Ownership tends to reflect an owner’s actual use of a vacation home. Buyers enjoy ownership privileges at high-end luxury resorts for a fraction of Sole (home) Ownership. Fractional Ownership (except Elite Fractional) buyers tend to purchase only what they plan to use vs. viewing the property as both a vacation home and an investment asset. Fractional Ownership buyers typically have a recorded deed and title.

If you are considering a second home in Charleston SC, check out sites and properties like www.thecharlestonclubdi.com or www.charlestonfractionalownership.com
These websites offer details about the amenities and agreement contracts and will help you decide if fractional ownership is for you.