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Comparison of fractional property ownership & rental methods |
| Type | Flexible or fixed location | Type of property | Motivation | Equity owned | No of owners | Payments | Exit |
| Second home | Fixed | Any size | 1 Investment 2 Lifestyle |
Yes | 1 | Purchase + running | Sell |
| Fractional ownership of second home *** | Fixed | Any size | 1 Lifestyle 2 Investment |
Yes | 2-13 | Purchase + running | Sell |
| Private residence club | Fixed | 1-3 bedrooms | Lifestyle | Maybe ** | 2-13 | Purchase + annual | *Sell |
| Timeshare | Fixed or flexible within club | 1-3 bedrooms | Lifestyle | Maybe ** | 14-52 or points | Purchase + annual | Sell |
| Destination club | Flexible within club | 1-5 bedrooms | Lifestyle | No | NA | Purchase + annual | *End membership |
| Rent property | Absolutely flexible | Any size | Lifestyle | No | NA | Pay as you use | NA |
| Fractional rent | Fixed | Any size | Lifestyle | No | NA | Monthly rent | End lease |
| Hotel | Absolutely flexible | 1-2 bedrooms | Lifestyle | No | NA | Pay as you use | NA |
* Generally Destination Club's membership cannot be resold. Members typically have to wait for a given number of memberships to be sold before they can be refunded their deposit. This can also apply to Private Residence Clubs. ** Sometimes the owner buys a share in the specific property, sometimes a representative share of the who: for example, buying a 1/400th of all properties if they are buying 1/8th of a property in a development of 50 properties. *** Fractional ownership is usually defined as being having no more than 13 owners. *** Timeshare sometimes involves ownership of equity in the property. However even if equity is owned, if there are more than 13 owners, then is usually defined as timeshare. There is considerable variety between the different models and many hybrids exist and more are evolving. |
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