Partial ownership has benefits for everyone — even the wealthy

Purchasing real estate is often viewed as one of the wisest investments one can make. It's conceptually simple, provides some tax advantages, and can serve as a hedge against inflation (i.e., home values and rents also usually increase with inflation).

But purchasing an additional home can be costly, and having a lot of your capital tied up in one asset often means you can't diversify your portfolio as much.

What if there was a way to acquire real estate at a lower entry point — and tangibly enjoy your purchase while you're at it? Enter: fractional ownership of vacation homes.

Thanks to companies like Fraxioned, Utahns can enjoy the benefits of having a share of a home near Bear Lake or Lake Powell without the financial commitment of purchasing an entire property.

Fractional ownership is for the wealthy, too

A key benefit of fractional ownership is that it often requires less capital. But, as it turns out, even those who have a lot of capital are seeing the benefits.

In April, an article by Ingrid Schmidt in Yahoo Finance reported billionaires Steve Wynn and Thomas Peterffy teamed up to buy a $108 million estate in Aspen, Colorado — a record residential sale in the state.

"Fractional ownership happens more often than you'd think would make sense with the uber-wealthy," reported "Million Dollar Listing" star Josh Altman in the Yahoo Finance article. According to Allman, it's a way to make their money go further.

A typical vacation home is only used for a few weeks or months out of a year. But when you own it outright, you are on the hook for it year round — from mortgage payments to maintenance. With fractional ownership, you can free up funds elsewhere instead of putting all your eggs in one basket. It's an enticing proposition regardless of financial status.

A purchase that brings joy

Many sound purchases like stocks or a rental property can bring you long-term profit, but aren't exactly — for a lack of a better word — "fun." On the other hand, along with the possibility of building equity, a vacation home can create precious memories along the way.

Vacations aren't just good for the soul either. According to a 2019 study published in Psychology and Health, taking frequent vacations correlated with lower risk of metabolic syndrome and symptoms. In layman's terms, take your PTO and you'll reduce your chances of heart disease, stroke, and type 2 diabetes.

And while many Americans have to travel a long way to reach a worthwhile vacation destination, Utahns don't. From the turquoise waters of Bear Lake to the Navajo sandstone of Zion National Park, the Beehive state is home to an embarrassment of riches.

With Fraxioned, you can have your own retreat just a stone's throw from those world-class destinations. Locations for active listings include:

• Garden City (near Bear Lake).
• Page, AZ (near Lake Powell).
• St. George.

How it works

You've likely already got the gist, but fractional ownership entails sharing costs and vacation time with other owners. When purchasing a vacation home through Fraxioned, you share it with seven to twelve co-owners — and your allotted time at the property is split accordingly. For instance, as a one-eighth owner, you'd be entitled to 44 days (or six weeks) at the home.

Is it like a timeshare?

The short answer is: No.

A timeshare is often considered to be more of an expense than a real estate purchase. When you purchase a conventional timeshare, you do not gain any actual ownership of the property. Instead, you get the right to use said property for a set period each year — usually just one or two weeks.

True fractional ownership — such as through Fraxioned's LLC structure — allows you to get actual ownership of the home (and the equity that might build up over time).

Choose Fraxioned for flexibility and free time

Having to put in a lot of hours to manage and maintain your vacation home kind of defeats the purpose. From start to finish, Fraxioned makes the shared ownership process as hassle-free as possible so you can enjoy your vacations to their fullest. Here are a few things Fraxioned handles for you:

• All aspects of renting out the place when you are not using it.
• All maintenance and cleaning tasks — no more cleanup dread on the last day of a vacation.
• Convenient once-a-year collection of utility bills, property taxes, and insurance payments in the annual dues.

Additionally, Fraxioned makes scheduling a breeze with its online calendar — with regulations put in place to ensure equitable access for all owners.

If you are ready to make your dream vacation home a reality, contact Fraxioned today. Make sure to hurry: Multiple listings are only one share away from selling!