Source: Architectural Digest —
Fractional ownership—also referred to as joining a private residence club—is one of the most misunderstood and unknown sectors of the real estate market, according to Steve Dering, the founder of Elite Alliance, a company that consults on and sells luxury fractional real estate.
“People often mix up fractional ownership with timeshares where consumers buy a certain amount of time in a vacation home but don’t actually own the property,” he says. “With fractional ownership, you own real estate that can be sold, placed in a trust, gifted, or inherited.”
Joining a private residence club is ideal for buyers who don’t want to wholly own a property because they won’t use it enough to justify the cost. “Most of our customers can well afford to buy a high-end vacation home, but it doesn’t make sense for them to do so since they only want to spend a limited number of weeks in it a year,” Dering says.