What is Fractional Ownership?

In business, fractional ownership is a percentage share of usually an expensive and luxurious asset, such as a vacation villa, exotic sports car, a private jet or a luxury boat. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing. Typically, a company manages the asset on behalf of the owners, who pay monthly/annual fees for the management plus variable (e.g. per-hour, per-day) use fees. For rapidly-depreciating assets, the management company may sell the asset and distribute the proceeds back to the owners, who can then claim a capital loss and optionally purchase a fraction of a new asset.

The Benefits of Fractional Ownership:

The primary benefit of fractional ownership is the initial low capital outlay - you purchase an interest in an asset for a fraction of the price you would have to pay to buy the same asset outright. There are other benefits as well, including:

• Financing an asset at a fraction of the cost is easier than financing on the full value of the asset.
• Your deposit required for down payment is low.
• You can usually sell or transfer your fractional ownership interest.
• You and other fractional owners determine the function of the club or management company.
• You have no maintenance worries, since, with most companies who use the concept for managing assets, e.g. property, supercars, jets, yachts, etc all this is done for you as part of the service.
• Because all running costs are shared, they are generally very affordable
• Fractional ownership gives you your lifestyle when you want it, particularly if you are the sort of person whose business and leisure time is always precious.

It's all about lifestyle, and with fractional ownership the lifestyle of your dreams is available at a price you can afford.