What Is Fractional Home Ownership?

  • Josh Dotoli
  • 11/19/21

Sometimes fractional homeownership can be an optimal solution for those interested in purchasing a Luxury investment property or second home. The fractional homeownership model allows buyers to purchase just one or several shares of the same house, which they will then live in and enjoy as their residence while sharing all expenses with other co-owners. Many factors define the co-homeownership model, but first, let us explain the fractional part of fractional homeownership.

Fractional Home Ownership: Many people are familiar with the concept of fractional homeownership but not precisely what it means or how it works, so let's start there. A fraction is a share in something that belongs to another person. For example, you may own $100 worth of stock out of 1000 shares. That 100 dollars worth of stock is equivalent to one-tenth of the total amount of shares. Another example of fractional homeownership is with real estate. 

Fractional real estate ownership is a method of purchasing an ownership interest in a property with others to share costs.  While a traditional timeshare limits access to the property to one to two weeks per year, fractional ownership can allow access to the home for five weeks or more per year, depending on the number of owners per unit.

A fractional ownership property can be an excellent investment for those who want to own their real estate but not pay the full price. By holding equal parts of an asset, these properties allow owners and tenants alike more say in maintenance and upkeep. In addition, on-site storage is provided so that nothing is lost or misplaced during turnover periods or moves between homeownership situations like renters do now with traditional rental units.

The DOTOLI & Pacaso Difference

Pacaso's professionally managed LLC co-ownership model offers a better, smarter way to own an additional home. It's as if you are one of the few families who have come together to purchase this property without any hassle or risk associated with DIY projects. An excellent alternative for homeowners looking into buying another house but don't want all that difficulty or responsibility.

Real Ownership In Real Property 

With this form of ownership, you have actual property ownership that gains value and builds equity with the rest of the housing market. There is a much smaller owner concentration compared to that of timeshare ownership. There are only eight shares available for each DOTOLI & Pacaso home. Historically, timeshares have allowed up to 52 owners for one common property. 

Scheduling Made Easy 

With this style of fractional home ownership, owners and guest use a state-of-the-art app that makes scheduling stays flexible and accessible. You can choose between general or short stay notice options. Guests can also see availability in real-time to book the time they want with just a few taps. In comparison, timeshares often have fixed weeks or other scheduling limitations that make them difficult for modern co-homeownership buyers.

How Are Holidays Selected? 

Owners of a single ⅛ share can enjoy six different stays, including "special date" holidays and short notice. Each owner has one special date per year to request at their leisure; this gives you 24 months before another person can request the same day. 

How Far In Advance Do You Need To Schedule Your Stay?

If the days are available, you can book your stay as little as two days in advance. This form of fractional home ownership offers flexible options for the modern-day buyer looking for luxury amenities and a luxury atmosphere for a fraction of the price. For more information on the homes available for this form of ownership, contact Josh at 954.799.6403 or email Info@DotoliGroup.com.

Follow DOTOLI Group On Instagram