Advantages and Disadvantages of Fractional Ownership of a Vacation Home
Should You go Into a Fractional Ownership?
Fractional ownership is where two or more families/friends purchase a vacation home together and they split all the expenses and income equally among owners. Owning a Champions Gate home for sale with fractional ownership is a great way to have all the benefits of owning a vacation home for a fraction of the cost. It will allow you to spread out the risk and monthly bills that come with owning a vacation home.
Advantages of Fractional Ownership
There are many advantages of fractional ownership of a home for sale in Champions Gate.
Many people dream about owning a vacation home in a resort community like Champions Gate, but sometimes their income does not allow this to become a reality. By joining in with a partner or two, an owner can split the monthly carrying costs associated with the vacation home.
More Capital for Property Upgrades
All homes for sale in Champions Gate will need a little TLC every once in awhile. When sharing the cost of a vacation home with other partners, you can afford more upgrades than if you were paying for the upgrades yourself.
When renting your vacation home out to other families during the year, your goal is to have the vacation home make a profit year in and year out. This goal will be more easily accomplished when the owners can split the various jobs that go with owning a vacation home. For example, one owner might be in charge of talking to prospective renters and giving them information on the property, while another one is in charge of guest relations while the guest is staying in the house. When you split up these jobs, you reduce the monthly overall carrying cost of the vacation home.
Disadvantages of Fractional Ownership
Along with the advantages of fractional ownerships, comes a few disadvantages as well.
HOA or Local Regulations May Restrict it
Some communities are now cracking down on fractional ownership of vacation homes, by either not allowing it or limiting ownership privileges to just one or two owners. We suggest checking with the homeowners association of the neighborhood before making your purchase.
Clashing Vacation Home Plans
One owner may just want the property used for immediate family members, while another partner might want the house rented out as a short term vacation rental. It’s important to have this decided prior to going in on a fractional ownership, to avoid conflicts down the road.
For more information, please call us today at 407-705-7634 or submit our contact request form.