FAQ: Where did the concept of fractional ownership originate?
The concept behind fractional ownership is not new or revolutionary, although the term “fractional ownership” is a fairly recent turn of phrase, dating from around the early 1990s. For centuries, friends, family members and business partners have been joining together to buy second homes and vacation properties, dividing costs and responsibilities. It makes sense to share the cost both of purchasing the property as well as its maintenance, especially when you won’t be visiting it every weekend.
The term “fractional ownership” first became popular with the advent of fractional ownership of private jets. Fractional ownership of yachts closely followed and then luxury vacation homes. When dealing with high-end luxury products with low usage, it makes sense to divide the costs. Why have a jet sitting idle, charging parking fees, when it can be used. The same works for properties, your second home needs to be cleaned and maintained whether or not you visit, and it is a well known fact that empty properties deteriorate far quicker than those full of life and laughter.
The other advantage of fractional ownership is that you actually own your fraction of the property, which can be sold or left in a will. You can also purchase more fractions to increase your usage potential and even work towards becoming a full owner. At Villa La Estancia Residences, we take this idea one step further, and offer you the chance to exchange your fractions toward payment of a full property at any point should you wish to upgrade from fractional to full ownership.