What is the difference between fractional ownership and timeshares?
Fractionals tend to be more exclusive and built to a higher amenity level than traditional timeshares. Timeshares usually allow just one to two weeks use per year while fractionals may offer up to twelve weeks. Fractionals tend to appreciate over time while timeshares have historically done poorly. There are a couple of reasons for this. More of the buyers’ dollars go to high quality finishes and “bricks and mortar” with fractionals. There are a limited number of fractionals on the market. Most likely, that number will stay small because fractionals are built in only the most highly desirable world-class resort destinations such as Paris and Aspen. Therefore, demand outpaces supply.
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