What Is Fractional Ownership?


Quick Answer

Fractional ownership is a way to share the ownership and responsibilities of ownership of a highly valued asset, such as real estate, a jet or a luxury car. Individuals enter fractional ownership agreements for investment purposes or as an affordable alternative to outright ownership.

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What Is Fractional Ownership?
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Full Answer

Fractional ownership allows owners to make more efficient use of vacation properties and other assets that are only used occasionally. Each fractional owner holds a share of the ownership and is responsible for paying a share of costs for maintenance and upkeep of the asset. In this way individuals who would not otherwise be able to own an expensive vacation home or other asset outright are still able to enjoy many of the benefits afforded full owners. Typically there are allocated time periods when the asset is available for use by each fractional owner. Unlike time share investments, with fractional ownership when assets increase in value the value of the share in the investment increases as well.

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