Just what is fractional yacht ownership?

Fractional ownership is just what it sounds like... a partial ownership of an item of extreme value. Normally, this ownership is of a luxury type asset: such as a yacht, a race horse, a private jet or a multi-million dollar vacation home.

The differences between timeshares and fractional ownership come down to these three items:
1. The fractional owner actually purchases a portion of the item.
2. The owner is allowed to sell or rent out their time of ownership.
3. The management company must cater to the owner's needs.

Basically, purchasing fractional ownership in a yacht entitles the owner to luxury services for their alloted time, rent payments should they not decide to use their time and luxury services during their time.

Like purchasing real property, if the overall value of the yacht increases, the owner gains increasing equity in the yacht. In addition, the owner has usage rights to the yacht - something very few middle class individuals could afford otherwise.

SO - fractional ownership provides more than just a timeshare. Fractional ownership provides owner rights to the luxury item being purchased.

Learn more about this author, Linda J Banks.
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