Owning a little slice of paradise sounds like a dream. Being able to sail at the last minute without worrying about booking accommodation, waking up to all your home comforts but with a view of the beach, what’s not to love?
Timeshares or fractional ownership began to be explored in the 1970s, and they remain an immensely popular option for owning a property abroad today.
Sharing a vacation property lets you get the benefits of owning a home abroad for a fraction of the price. You save on initial investment, bills, and upkeep, and it usually means you can afford something rather more deluxe than you might otherwise imagine.
But fractional ownership isn’t for everyone, and before you start checking immigration requirements for Panama or researching how many months of the year you can afford to stay in Mexico, it’s worth exploring whether sharing a vacation home is right for you.
To help you get to the bottom of the concept and work out if it might be something you’d want, here are the main pros and cons of sharing a vacation property overseas.
Pros
More affordable
The biggest benefit of fractional ownership is that it is significantly more affordable than owning a vacation property by yourself. For starters, the initial cost of the property (as well as all the legal and admin fees) will be split between the group of owners, making it far more feasible to buy, and meaning you can afford a more luxury option. Then, the running and maintenance costs of the house, plus any upkeep and repairs, are all split too.
Less hassle
When you share a property, you also share responsibility for the property. This means that not everything that needs taking care of or that goes wrong needs to be sorted out by you. Tasks, duties, responsibilities, and actions in the event of an accident or an emergency will all be shared equally amongst the ownership group, which means less individual stress and hassle.
Less property vacancy
The more people you share your vacation property with, the less time the property will be standing empty. This is often one of the biggest problems with owning a vacation home overseas, as when a house is empty, things can deteriorate or go wrong more easily. Shared ownership also reduces the need to find vacation tenants, meaning less to organize.
Cons
Potential for arguments
Not everyone shares the same vision or ideas when it comes to property ownership, and a shared property always has the potential for disputes when it comes to things like redecoration or further investment in the property. There’s always a chance that owning a property together will result in arguments and difficulties, even amongst friends.
Hard to sell
Selling a property that is fractionally owned can be extremely challenging. You either have to all agree to sell at the same time, or find buyers who are also happy to own a percentage of a property (and persuade your other owners that these new partners are acceptable).
Less freedom
If you only own a fraction of a property, you are only entitled to visit for a fraction of the year. You will have to arrange a schedule for when each owner can use the property, which reduces your freedom to vacation whenever you choose to.
All in all, the pros of buying, running, and owning a shared vacation property generally outweigh the cons. It might not be the ideal option for absolutely everyone, but it is something that is genuinely worth considering!
