What do you understand by the term fraction? It means a part or percentage of something. Similarly, fractional ownership is percentage ownership in an asset. In other words, it can be defined as a way of sharing the ownership of a particular asset so that it becomes unobtainable by an individual. Shares are sold to individual owners who are all allowed to access the benefits of the asset. However, they need to share in the income that results from it.
Breaking down fractional ownership
Fractional ownership can be beneficial for an individual as it allows them to own a percentage in a luxury property that they may not be able to afford alone. However, this option can also be opted by people who can buy the property on their own but don’t have time to maintain it.
Types of fractional ownership
Fractional ownership can be of different types.
To conclude, fractional ownership can be useful in certain cases. But at the same time, it does have some major drawbacks to look into.