There are many reasons why one may wish to buy something as part of a fractional ownership scheme (also called shared ownership) rather than buying it outright:
1. You couldn’t afford it otherwise! This is the most common reason for considering buying a fraction. If you are prepared to accept a degree of compromise you will probably find that you can benefit from the reduced cost and still enjoy the use of the asset in much the same way that you would if you owned it yourself (this obviously depends on the size of fraction you opt for)
2. You can get something better. This is a common situation. To take a personal example, I currently own a small yacht. This is too small to take my family sailing on. I am planning to sell it and put the money into buying a much larger yacht fraction. By doing this I will be able to own something that is much more suitable for me without paying any extra money. The time allocation for my proposed 10th share will enable me to go sailing as much as I do currently on the yacht that I own.
3. Running costs/time. Boats, Houses etc. need looking after. This can easily be the thing that removes the pleasure from ownership. Either you have to pay out lots of money to get maintenance done or you spend your leisure time doing DIY. If you own something as part of a fractional ownership scheme you can then afford to have all the maintenance done for you, so that you just have to enjoy using it!
4. Variety. I have known people who have owned holiday cottages who feel guilty of they have a holiday anywhere else! People are all different, and some may be happy to go to the same place every year, but this would drive some people mad. If you own a leisure asset fraction then you can tailor your fraction size to the amount of time that you would like to use it. If you are in the fortunate position of being able to afford to buy something outright, you could instead buy a number of different fractions and enjoy the use of all of them.
Tags: fractional ownership, fractional ownership information
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