What is a fractional ownership property?
Fractional Ownership is a concept that incorporates the
best of both worlds with Timeshares and Full Ownership properties.
On one side you have timeshares which allow you an affordable vacation option
to you and your family to enjoy typically once a year. Timeshares are also
typically located in resort destinations just like Cabo
San Lucas with varying amenities that mirror those of a hotel. Timeshares are
also very affordable when considering the cost of a property if you purchased
it outright that would be located for example on the beach with 5-star hotel
amenities. At least here in Cabo to buy a beachfront
condo it will be at a minimum around $500,000 and a timeshare can be picked up
for around $20,000. In addition to the cost benefits of a timeshare you also
gain the benefits of a “no worries” mindset when you are visiting your
timeshare and more importantly when you are away. It’s literally maintenance
free which is not so much the case with Full Ownership.
With the popularity of timeshares around the world and in Cabo
San Lucas included, there has emerged a new group of buyers that are interested
in the concept of timeshares but want to have actual deeded ownership. This has
given rise to Fractional Ownership because in a Timeshare the owners or
members, if you will, have resort privileges for typically only 25 years. After
those 25 years you can re-buy the membership or lose it. As a result you will
see many resales of timeshares far below the price at
which they were originally purchased for. It is essentially like buying a used
car. The useful life is less than before and hence is worth less. This is not
the case, though, for Fractionals because you own
them forever and as a result your investment typically appreciates much like
normal Full Ownership real estate. So you can get what normally would be a
million dollar condo for a fraction of the cost. It really is a lifestyle, by
which, you can spend a couple months a year in Cabo
carefree and spend the rest of your time in other parts of the world. In fact,
most of the purchasers of fractional properties aren’t buying the fractional
units because they can’t afford Full Ownership properties but simply because it
is more convenient and fits their lifestyle.
Cabo has several fractional ownership properties from
offering golf to yacht club memberships. Contact me for more information in
regards to fractionals or feel free to visit my
website.