Why do people buy fractionals?
The dollars involved is
usually a factor, but different folks have different ways of looking at this.
The most straightforward way is to equate the dollars you're spending with the
amount of time that you'll spend in your property. Most people with second
homes find they only spend 3 to 6 weeks a year at their second home. So by
buying a luxury fractional you can effectively only pay for the amount of time
that you're going to actually use your property.
Among the reasons people buy:
1.
Turnkey operation; especially of the
fractional buyer has owned a second home. In the fractional case housekeeping
and the HOA budget are all taken care of, so carefree use for the owners.
2.
Affordability is an issue that the salesperson
needs to work through with the buyer as most all buyers don’t want to admit
they can’t afford a whole ownership at the chosen destination.
3.
Star knows from its experience that many
second homes are better furnished than the first home, so in the fractional
case there are terrific FF&E and OS&E all professionally maintained.
4.
Private Residence Clubs vs. Mid Tier
Fractional product. The choice really depends on the location. For example
Aspen CO with its very high real estate prices would demand a PRC while parts
of the Catskills might dictate a fractional.
5.
The difference between the two? The level of
exchange, the level of the FF&E and OS&E. the size of the unit and the
level of services offered. Implicit in the PRC is a higher HOA cost.
Contributing to this brief article: Star Resort Group LLC and
Sherpa Report.
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