The concept of fractional ownership is not new, having been successfully integrated within the private jet and yacht industries over 25 years ago. Although the owners were extremely affluent, it made financial sense to divide the jet or boat into a shareable asset. Not only is the purchase cost divided, but as importantly, the maintenance, servicing and fixed costs are also shared between the group of owners. The concept works well in these luxury industries, however, only for the super-wealthy, as evidence supports that most boats and planes depreciate in value over time. Fractional ownership of an asset that tends to grow in value over time, such as property, is far more sensible concept!
Fractional ownership within the property sector originated from the ski slopes of Aspen and other expensive Alpine resorts in Colorado. Traditionally, the division of the title was done where properties were becoming too expensive to purchase and maintain in relation to the amount of weeks the owners actually used it. However, due to its popularity, the concept has been successfully applied to other resorts and properties across the World.
Fractional property ownership has been successfully tried and tested in many territories and looks set to prosper further with its successful introduction to the European marketplace. In the USA, Fractional sales are the fastest selling sector within the vacation property industry, as both developers and owners alike are being witnessing its benefits.