Whether you’re buying a fractional or timeshare for the first time, or are looking to sell your property to a buyer who’s eager to enjoy the benefits of a vacation property, there are always questions that need to be answered.

Here are some of the most common questions we get. However, if you have a question that isn’t here, please contact us, and we’ll be happy to personally answer it for you.

Question: What’s the difference between fractional ownership and a time share?

Answer: The biggest difference between the opportunities is money. Timeshares are typically broken down into weekly chunks of time, making them, quite often, more affordable than buying the larger chunk of time that’s usually associated with a fractional property. Fractional ownership is usually divided into 1/4, 1/8 or 1/13 fractions.

Another factor is location. Fractional ownership is typically associated with luxury settings such as an oceanfront, ski villa or other destinations that offer first-class amenities. Obviously, the cost of maintaining these amenities is passed along in the purchase price.

Question: I’ve heard that some people who purchase shares in a resort property can use their shares at other affiliated companies?

Answer: It’s true. As with most vacation or resort properties, there are small-time players and large, name-brand corporations in the business. IF you have your heart set on one particular location to vacation at over and over, then it might not matter who you buy in with. If you’re looking for some adventure at multiple destinations, larger corporations such as Ritz-Carlton, Four Seasons, Disney and Marriott offer the ability to swap time between various properties that are under their brand.

Question: Why do people tell me that fractional property is a better investment than timeshares, yet fractionals cost so much more?

Answer: The difference is in what you own. With a timeshare, you have ownership rights to units of time. But, in a fractional ownership arrangement, the owner has rights regarding his part of the property’s title.

So, if the value of a property that is sold as a fractional increases over time, so does the value of each owner’s fraction. Fractional owners can mortgage, sell or refinance at any time. If they sell during a time of increased value, the owner sees the return on their investment. timeshare owners cannot.

Question: How difficult is it to get financing for a fractional?

Answer: Many conventional banks and other lenders are hesitant to offer loans for fractionals. It’s not because they think you’ll default on the loan, but if for some reason a fractional owner does default on a loan, the property is more difficult to sell as a way to recoup the loan money. When financing for a fractional is available, it’s usually through the builder or the developer at a higher interest rate.

Question: Will placing my fractional into a managed rental program help lower my total cost of ownership?

Answer: It can. But there are no guarantees. Some properties – typically, the ones that offer the finest amenities – can charge owners upwards of $5,000 (or more) per year for maintenance. But at the same time, you can probably call the property ahead of time and be sure your fridge is stocked and the temperature set the way you like it. Placing your fraction into a rental program, even if it’s just for a few weeks, can certainly help defray some of these costs.

Question: Is it better for me to own a timeshare as points or as weeks?

Answers: It depends. Those who are in a points program can generally use their points in different ways. For example if you’re in a points program, you can probably book a single night at a property with your points. You can probably also use some extra points to upgrade to a larger unit if you want/need to. With weeks owners they typically have to use their week as, you guessed it, a full week. Also, weeks owners typically have their time booked for the same week each year and in the same sized unit with little to no chance of upgrading. With points programs, you can often book just about any time you like on a first-come basis.

And for some, the idea of having a fixed vacation week each year helps them make the time to ‘get away.’ For them, their yearly vacation is the only thing that prys them from their daily grind.