Vacation Home Ownership

Written by Diane Sievert
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Vacation home ownership is no longer a luxury only the wealthy can afford. Thanks to the myriad of vacation ownership options now offered, anyone can consider investing. If owning your own vacation home has recently begun to interest you, the first step is acquainting yourself with the available choices.

The Three Most Common Types of Vacation Home Ownership

A time share is far and away the most common type of vacation home ownership, as it is generally the most affordable. Though there are many different types of time share programs, the basic idea is quite simple: a consumer buys a share of a small vacation home. Fixed week, float time and club membership are all versions of this kind of system.

Though time shares have remained quite popular, fractionals are the newest trend in vacation home ownership. Fractionals and time shares operate according to a similar set of rules, but fractionals are most typically luxury estates and come with a much higher price tag. In addition to being high-end vacation homes, fractionals also offer fewer share options--most fractionals are sold at shares of fourths, eighths or thirteenths.

Last but not least is the wholly owned second home. This is by far the most expensive of the three options, not just because it requires the full purchase of a second home, but also because of the costs of general upkeep and maintenance. Though fully owning a vacation home is a luxury we'd all like, it is hardly a cost efficient decision unless you plan on spending a whole lot of time there.

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