Fractional ownership

Fractional ownership is an investment approach in which the cost of an asset is split between individual shareholders.
Fractional ownership shares in the asset are sold to individual shareholders who share the benefits of the asset, such as usage rights, income sharing, priority access, and reduced rates. This type of investment split is expected in the purchase of expensive assets, such as vacation homes, luxury cars, and aircraft [Investopedia].
Fractional ownership is:
– A more accessible way to buy and own than purchasing alone.
– When the cost of an asset is divided into percentage shares.
– Property that’s owned and shared by multiple unrelated parties.
Some pros of fractional ownership:
– Each owner has express ownership of part of the property.
– Your capital goes further as a part of a collective buying power.
– You have greater control over when and how you stay than a timeshare.
– There are typically fewer owners to share with than a timeshare.
– You can sell your shares in the property whenever you want.
– Your shares can appreciate over time [Pacaso].

Sources:

Fractional Ownership: Definition, Purpose, Examples. Investopedia. Retrieved from: https://www.investopedia.com/terms/f/fractionalownership.asp

What is fractional ownership in real estate? Pacaso. Retrieved from: https://www.pacaso.com/blog/what-is-fractional-ownership