The best way to answer that would be to say, do your research. Here’s a quick outline of some of the pros and cons.
First of all, the concept of fractional real estate has been around for many years, and has proven stability in the real estate market. In fact, fractional real estate is not only stable its popularity is soaring! In May 2006, real estate experts swarmed the Ragatz Symposium in Coronado, California to discuss this exciting new movement. According to Ragatz Associates (an internationally renowned market research organization), real estate developers reported a 218% increase in new fractional projects.
Interested in an exotic destination like Hawaii, or maybe even Europe? Or maybe something closer to home in the mountains of Colorado, the sunny shores of California or along the east coast, such as South Carolina or Florida? No matter where you would like your vacation home to be, there is a fractional option for you.
One of the few cons to this new and exciting vacation option is financing. Not all lenders are familiar with fractional mortgages. Should you find a property in a major resort area, lenders may already have a financing package available. For individual homes, you may need to speak with a mortgage broker to find a lender or consider a method kept secret by the rich and famous, the use of living Trusts to offer creative financing and asset protection.