Want to own a piece of San Francisco or Napa or Paris or Tuscany…but only just a piece? Then, fractional real estate ownership may be for you.
There is a great real estate brokerage called Global Quarters based out of Sonoma County, California that caters exclusively to the exclusive community of fractional real estate ownership.
According to the Broker/Owner Paula Gold-Nocella, the average owner of a second home uses their property approximately 17-21 days a year and with the cost of purchase, mortgage, maitenance, taxes and insurance, the total cost of ownership can be very steep considering the useage!
Paula says, “In any market fractional sales make sense financially…With fractional ownership you only purchase what you need according to what you will use, and you have deeded ownership. You stand to gain from the appreciation of your asset (the second home), all for a fraction of the cost of whole ownership.”
You may be thinking, “This sounds like a timeshare.”
The biggest difference between a time share and fractional real estate ownership is that with the fractional ownership, you OWN the real estate. Real estate is a solid, long-term investment. With a timeshare, you do not capitalize on your long-term ownership of the property. With fractionals, you do.
Other differences between Fractionals and Timeshares:
- Fractional = You own the real estate. Timeshare = You do not own the real property.
- Fractional = 4-12 Co-owners v. 500-600 co-owners in a timeshare
- Fractional = You have control and decision-making. You work with your small group of partners. Timeshare = Well, if you have ever owned one, you know there is very little power to improve things.
- Fractional = Potential for Long-Term Profit and an Appreciating Asset to pass down to your heirs
Personally, I think this is a very exciting real estate trend. Many of us aspire to own property all over the world and for some of us, it is a reality. Yet, do you really want 100% of the responsibility and ownership of the property? Maybe it does make sense to have a few co-owners to share the luxury home with so you can fully utilize your investment…
I’ll go back to what Paula has to say because it sums it up perfectly!
“Three things are changing where and how Americans buy real estate: retiring baby boomers, inherited wealth and technology.” – Paula Gold-Nocella
Just for fun, here are a couple of the properties that yours truly would love most. (Hey Daddy Warbucks, feel free to send a check!)
The Ranch on Soda Rock Sonoma County, California
7 rue Malher, Paris 4th Arrondissement Paris, France in the Marais
The Ritz-Carlton Club and Residences, San Francisco because why not? I love San Francisco and I LOVE the Ritz. You can trade your room for any Ritz anywhere. Yum.
And of course, pretty much anything in Italy!