Are Fractional Ownership and Timeshare the same?

No, fractional ownership and timeshare are not the same.

Fractional ownership is different to timeshare although the idea of “sharing time” at a property is similar. The key difference between fractional ownership and timeshare is that when you purchase a fraction of a property, you own titled real estate. At Villa La Estancia, fractional ownership will entitle you to the deeds of your fraction of the Villa that you wish to buy; you are the owner of that percentage of the Villa, with the right to use all the facilities at the hotel covered by your maintenance fees.

Timeshare functions in a different way, depending on the membership, but in general, you do not own equity when you buy timeshare. You purchase points or units of time which give you the right to use a property at a timeshare resort. Fractional ownership, on the other hand, makes you the actual owner of your percentage. As such, your investment can appreciate in value over time as the property as a whole appreciates. Likewise, fractional owners can sell their individual fraction whenever they choose.

Fractional Ownership - Villa la Estancia Residences Riviera Nayarit

Another difference between fractional ownership and timeshare is that fractional ownership is just like a bricks and mortar investment that does not expire. Timeshare membership is usually for a set period of years like 25 or 30 years. Fractional ownership is for life and can be left in a will, donated or gifted as you wish (in accordance with federal inheritance laws and taxes, of course).

The advantages that both fractional ownership and timeshare share is the ease with which you can enjoy a second home in paradise without the responsibility or costly investment of full ownership. Fractional ownership allows you to enjoy all the advantages of owning your second home, without any of the hassle associated with being a homeowner in a foreign country. At Villa La Estancia, you pay for your fraction of the property and your share of maintenance fees and you can come and go as you please during your allocated yearly fraction.

Both timeshare and fractional ownership have their advantages, the key is to find what suits you and your vacation aspirations.