Fractional Home Buying

It’s true that housing prices are falling, but you might still be reluctant to buy a home, especially if you’re looking for a vacation or second home. If that’s the case, then a fractional might be an appealing way to have something new without worrying about whether you’re getting the best deal—and you won’t have to be concerned about resale value, either.

A fractional residence isn’t necessarily cheaper than a regular residence, but you’re getting the best of all worlds. Unlike a timeshare, fractionals are deeded ownerships, making them a solid real-estate investment. If you find you want to purchase a full home in the future or move to a different fractional later on, you can sell your ownership stake just as you would any other property.

Many fractionals are run by major hotel-resort groups such as the St. Regis or the Ritz-Carlton, so you’ll get a home away from home with tons of amenities and services, and you won't have to deal with the maintenance and upkeep of the property. Typically, your investment means you have deeded ownership in the property that entitles you to a certain amount of use per year (typically five weeks) and additional usage based on availability.

Sound a bit too rich for your blood? Some fractionals can be rented—though resorts usually keep that information on the DL. Try calling a property you’re interested in and find out if you can have an empty unit for a week or so. After all, don’t we all deserve the high life, even if it’s just for a little while? [New York Times]