Timeshares vs Fractional Ownership

Thanks to the numerous scandals surrounding unscrupulous timeshare companies in the last couple of years, people have gone back to holidaying the old fashioned way. But what some may still be unaware of is that fractional ownership is still a popular choice among those who can differentiate them from dodgy timeshares, and afford them. We can't help you with the money bit, but here's a rough guide to the differences between the two: 

Number of owners

In order for timeshares to appeal to the general mass, it needs to be reasonably priced. This means more people are roped in so the cost is reduced. Fractional ownerships are usually shared by a group of friends or relatives.  

Cost

Timeshares are limited to vacation homes since what people are buying is allotted time to stay at these residences. Because these plots are largely varied and sometimes not well-maintained, they tend to cost a lot less.

Fractional ownerships include more extravagant indulgences like private planes, yachts and luxury homes and villas so the entry fee won’t come cheap.

Flexibility

People who have fractional ownership of say, a property, are given ownership deeds that can be willed to an heir. Friends and family are also allowed to use the space when it’s your time to visit. You are also allowed to rent the space out for profit when you’re not using it. Timeshares tend not to be transferrable or tradable and you will have to stay during the dates you bought.

Re-sale value

Because fractional ownership gives you a share (or shares) in the property or commodity, it’s easier to sell them again for profit. A quick search on Ebay will show you timeshares going for as low as five dollars.

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Since it's safe to assume that a well-deserved vacation is a more likely indulgence than a private jet (for now), here are a few clubs that offer fractional ownership:  

The Hideaways Club

Chamonix Chalet Soleil, France (above) and Asmara in Bali, Indonesia

One of the newest entries to the fractional ownership is the exclusive Hideaways Club. What sets this one apart from the others is that it gives its members access to 100 properties in over 50 locations — think seaside villas in Turkey to exotic palaces in Portugal — so you’ll never have to pick the same holiday locale year after year.  All properties are fully maintained with concierge services. There are three types of memberships, with the lowest one starting with an entry fee of £127,500 ($258,700).

Marriott Grand Residence Club 

47 Park Street residence in Mayfair, London (left) and South Lake Tahoe, California

Although the Marriott Grand Residence Club offers only two locations for now — Lake Tahoe, California and London, England — the resorts have been wildly popular with vacationers. Whether you’re looking for a ski holiday or a city stay in a luxurious Mayfair residence, expect top notch service from the Marriott staff in irrefutably plush residences.

St Regis Residence Club

Luxurious St Regis housing in Aspen (above) and New York

Ever wanted to live the high life in a great city, butler constantly at your side? The St Regis Residence Club in New York will give you just that. But if life in the Big Apple isn’t what you’re looking for, there are always the Aspen Mountains. If you loved the St Regis’ Remeda spa here in town, you’ll be pleased to know that its flagship is located in the Aspen residence, with 1,394 square metres of indulgence waiting. Members of the Aspen club are also able to convert two of their club weeks into Starwood Preferred Guest Starpoints, to be used in any of hotels in the Starwood portfolio.