The two are often confused – which is a mistake. Conceptually, Timeshare was (and still can be) a flexible method of holiday vacationing, however, the industry suffered dreadfully from bad practices and sales tactics. Similarly to Timeshare, Fractional Ownership provides you with much of the flexibility and choice, however, the fundamental difference is that with Timeshare, you own units of time, whereas with Fractional Ownership you own title or shares in a deeded property. This asset has a value, which can appreciate with the property’s value and be sold.
Timesharers traditionally lost control of the management and running fees of a resort and therefore their ownership of “time” became an expensive burden, opposed to lifestyle benefit. With Fractional Ownership, management and maintenance fees are controlled. Every owner within a fractional property will want to see that costs are not inflated beyond inflation where necessary and indeed they have a large amount of control over the management fees.
Because Fractional Ownership is asset-based, owners will not only be able to vacation in their property, they will also enjoy any growth in the property’s value. Timeshares simply get usage of a property and therefore cannot experience any capital appreciation in the “bricks and mortar”.