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.