Fractional ownership is the shared ownership of a vacation home or condo by a group of individuals or families. Fractional ownership can be accomplished in different ways, however most frequently they are set up by the property owner or developer. With the real estate market skyrocketing in Costa Rica, opportunities for fractional ownership of a beautiful and luxurious vacation home or condo are endless and offer many advantages over full ownership.
Seeing as the majority of people only use their vacation home for an average of 17-30 days a year, full property ownership can often lead to complications. For example, the dilemma will often arise on whether to rent the property or to leave it vacant. Renting often involves rental promotion, booking handling, property upkeep in between rentals, limitations on available times for personal use of the property, and many other burdens. Furthermore, leaving the property vacant can lead to a different set of complications such as wasted potential of capital gain, vandalism, and theft. While having a property manager or rental agency handle these problems is one option, fractional ownership can be a less expensive and more efficient way of solving them.
By splitting up the costs of acquisition, taxes, insurance, utilities, and maintenance, a fractional property owner can often times afford to invest their money in two or three different vacation homes rather than just one. Doing so can significantly lower investment risks while simultaneously giving the owner more options for personal vacations in comfortable and personalized homes or condos.
Different Fractional projects have different legal structures for usage. This is something you should consult your lawyer on or an experienced realtor. Some structures are better than others and protect the owners and their rights. Contact me for more info:
Piperrenner@hotmail.com
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