What is Fractional Ownership?

Simply stated fractional ownership is the opportunity for buyers to own, by deed, and be responsible for the amount they actually use their second home. Each owner is able to use the home an equal amount of time through all the seasons of the year, one week per month in a ¼ share. They also equally share the costs of ownership. A management company will direct the day to day maintenance of the home through the use an “Operating Agreement”, and “HOA” which creates a fair and equitable method to address any of the concerns associated with shared ownership.

Fractional ownership vs. Whole ownership vs. Timeshare

In fractional ownership the owner has deeded fee simple title held as tenets in common. This enables the owner to participate in any appreciation and any other potential tax advantages that whole owner provides. Fractional owners are equally as responsible for maintaining the home as a whole owner. The only difference is they are only responsible for ¼ of the cost to purchase, and maintain the home. And with a full three months of usage per year they are only responsible for the amount they might use the home. A timeshare typically has no deeded ownership, they don’t use the specific unit they purchase, they have little to no say in the maintenance of the home and they rarely have any appreciation value.

Why Fractional ownership?

Research has shown that most second home buyers use their homes an average of six weeks per year but they are responsible for the costs owning and using the home fifty-two weeks per year. The Southern Utah market is comprised mostly of commuters, being that they drive to and from their second homes and as such tend to use their second homes more frequently. Therefore this is why Alpine Fractions is offering ¼ shares, thereby affording each owner usage of the home one week per month. This is typically more than the average wholly owned second home is used in this market.

How nice would it be to have your dream vacation home to use as much as you would like while not having to worry about the maintenance and upkeep all while paying only a fraction of the purchase price and ownership costs of that home.