Fractional is a system of real estate marketing that began in the USA, Canada and Mexico about five years ago. It is specifically for holiday homes as it is based on the concept of shared ownership.
Basically, if you buy a fractional property you are buying FRACTION of the development. However, this fraction, instead of being measured in units (as in a building unit) or in so many square meters (as in building lots), is measured in TIME USED. Thus, a number of different owners can enjoy the use of the house completely for themselves, one at a time.
Recent research shows that the owners of holiday homes only use them for about 10% of the year (around 36 days). However, they pay the expenses for a full year - service charges, caretaker, water, light, IPTU (municipal property tax) etc etc etc.
With the fractional, the owner purchases for less and has fewer costs, since he pays only for his equivalent fraction. Furthermore the fractional concept covers inclusive hotel services as well as all the furniture, equipment, linen and tableware. So when buying a fractional there are no worries about the building, the decoration, the maintenance or the cleaning. You really are on holiday in every way.
And a fractional is a property transaction with the title deeds registered at a notary office. And, as with all proper real estate, it can be sold, lent, rented, mortgaged, inherited ... and increase in value.
In the United States, Mexico and the Caribbean the fractional is already a reality. The first enterprises that adopted this model are harvesting the fruits of their pioneering with valuations of up to 200% of the original value, certainly proving to be excellent business.
Each owner has the right to four weeks of use per year. These weeks are divided into two categories:
PREMIUM WEEKS - including Christmas, New Year's Eve, Carnival, Easter, January holidays and July holidays. Each owner has the right to a few Premium weeks in the year, as defined in the original contract.
FLOATING WEEKS - the remaining weeks of the year. Owners choose which weeks they want, according to a specified schedule, out of the 120 days before the start of the year. Two consecutive floating weeks can be chosen, but only once in any given holiday period. In this way, every owner has the opportunity to enjoy the most interesting times of the year.
Perhaps the most notable distinguishing feature of the Itacaré Paradise fractional is its association with the holiday homes exchange program, managed by The Registry Collection. Through this program, owners can exchange one or more weeks in Itacaré Paradise with one or more weeks in other locations throughout the world. The Registry Collection, the largest luxury homes exchange program in the world, has over 100 properties in various different countries. Thus, by buying a house in Itacaré, you can enjoy holidays anywhere in the world - without giving up your property and without worrying about issues associated with vacant possession.
Exchanges can be made in whichever week is convenient for you - allowing a “less attractive” week in Itacaré to be swapped for an unforgettable week in some other part of the world. Since Itacaré Paradise is classified as a high level property, there are advantages to be gained from exchanging such as lengthier stays, hire car rental, air tickets etc.