| Can you save money by using fractional ownership? | | | | the use of this asset. When working this out you |
| The marketing of fractional ownership has to date | | | | need to think about if the asset has a popular season |
| focused on a certain type of development, i.e. | | | | (e.g. summer for beachside property, New Year for |
| super-luxury resorts laden with facilities and services | | | | second homes in ski resorts). |
| at a very high cost. This isn't all it should be about. In | | | | Now divide B by C. Doesn't this make your proposed |
| many ways it is potentially more beneficial to people | | | | purchase seem more affordable? There is no reason |
| that don't have loads of money. | | | | why fractional ownership has to be about luxury |
| In most cases "fractional" ownership has involved | | | | (although that is very nice). It can save you lots of |
| taking the timeshare concept and making it 10 times | | | | money as well. Think about the following examples: |
| more expensive! However the need for fractional | | | | 1: A family on a limited budget would like to save |
| ownership is created (at all levels of income) by folks | | | | money on their vacation (or even afford to be able |
| not wanting to spend so much money on their leisure | | | | to go on one) by camping. The problem is that a full |
| assets. Even for the wealthy, the cost of a luxury ski | | | | camping setup for a family of 5 isn't cheap if you |
| lodge in Aspen or the latest super-yacht is going to | | | | haven't got much money. The fractional solution |
| hurt. So if you are rich you can bring down the cost | | | | would be to share the cost with 2 other families in |
| of owning your luxury yacht or prime Florida real | | | | their local area. They would still each be able to go on |
| estate. For the rest of us it can be used to bring | | | | vacation in the school summer break and take turns |
| down the cost of ownership of slightly more | | | | at using the equipment through the rest of the |
| mundane items! | | | | summer. |
| Forget about anything you think you know about | | | | Example 2: If you enjoy yachting why not look at a |
| fractional ownership and consider the following: | | | | fractional scheme for a used yacht. This can really |
| A. Think of something that you would like to own or | | | | bring yachting/boating within the reach of a lot of |
| use but can't afford (it has to be something that you | | | | people. This was exactly the sort of scheme that I |
| don't need to use all of the time). Typical types of | | | | got involved with at the age of 18! |
| things would be leisure assets (second homes, | | | | Conclusion |
| yachts, boats, caravans/RVs, tents), business | | | | I'm not suggesting that fractional luxury ownership |
| equipment (expensive and occasionally used | | | | schemes are a bad idea, in fact I think that they put |
| machines), or functional items such as a garden | | | | some really luxurious destinations within the reach of |
| tractor. | | | | many more people. I just want to put forward the |
| B. Assess how much this would cost you if you were | | | | view that fractional ownership can also be used lower |
| going to buy it. If you would have bought something | | | | down the value scale to actually save folks on |
| used then use this price, not the new price. | | | | modest incomes money and make their life a lot |
| C. Consider how many people could realistically share | | | | more enjoyable. |