Fractional Ownership: How to Live Like a Multi-Millionaire - Abaco Rose, Casual Luxury Gulf-view Florida Vacation Home on Inlet Beach, Florida, on The Emerald Coast of NW FL.

Your Abaco Rose Beach Home Fractional Ownership Opportunity

Fractional Ownership: How to Live Like a Multi-Millionaire
by David Yarian, Ph.D.

Do you want a more luxurious lifestyle –- but lack the million$ in ready cash to finance it? You've worked hard and you've been very successful, but the corporate jet, the yacht and the $4 million beach home are out of reach for now.

Fractional Ownership may be the answer to your dilemma! With fractional ownership, an expensive asset (jet, yacht, vacation home, classic car) is jointly owned with a number of other individuals; each owns a percentage share of the asset and has defined rights and privileges pertaining to the use of the asset. A management company provides the continuity and organization to allow share owners easy and predictable access to the asset.

This concept works well with many types of assets whose usage may be episodic. For example, second homes are used by their owners 2 – 4 weeks per year on average. If you've visited a marina lately, you've probably noticed that most of the slips are occupied by boats – i.e., they are not in use. Corporate jets sit idle until the executives need to travel.

Fractional ownership gives you as the share owner reliable access to that expensive asset you want or need but don't want to pay for 365 days a year. And, because you are part of a pool of owners, all maintenance, management, upkeep and repair costs, taxes and insurance are shared among the group. The management company schedules owners' usage, and takes care of routine maintenance, accounting and repairs.

In short: you have what you want, when you want it -- without the headaches, expense and liability of full ownership.

Fractional ownership is being used increasingly for ultra-luxury items. Many companies offer fractional shares of corporate jets(flexjet.com, netjets.com); turboprop aircraft (avantair.com); and helicopters (heliflite.com, sikorskyshares.com).

Fractional ownership of luxury boats and yachts -- both power and sail -- is common. Companies like monocleyachts.com, eusamarine.com, and seanetco.com offer fractional ownership of yachts on the East and West coasts, in the Caribbean and in the Mediterranean.

Classic cars such as the Lamborghini Murcielago, Lamborghini Gallardo, Rolls Royce Phantom, Bentley Continental GTC, Aston Martin Vanquish S, high-end Porsches and the Ferrari 360 Spider are available for fractional ownership through such companies as extremecarshare.com, curvyroad.com, and clubsportiva.com. Fractional shareowners in these clubs may opt for a membership that allows them to rotate their ownership among the different cars in the fleet, rather than only owning a fractional share of one classic car.

RVs are another category of luxury item that often sees only episodic use, so fractional ownership makes sense here too. Both coachshare.com and sharerv.com offer fractional shares of Monaco luxury coaches.

Racehorses have long been owned by syndicates –- groups of owners who join together to spread the cost and risk. Members of syndicates were often friends or business associates who knew each other and privately set up the syndicate. Now fractional ownership models are coming into play. In Britain, the 2005 Vodafone Derby winner made racing history: Motivator, the winning horse, was not owned by a super-rich breeder or personality, but by a syndicate of 230 people from the smart-moneyed classes.

The fractional ownership concept is being creatively extended in many areas. Wine Estate Capital Management offers fractional ownership of vineyards in France and South Africa. Art donors are finding it useful to donate a fractional share of their art to the museum of their choice, thus ensuring their continuing enjoyment of their collection for part of each year.

Luxury handbags are now available for fractional ownership, so if you want to diversify your collection without buying them all, your dilemma is solved. Shouldercandy.com offers handbags by Chloe, Balenciaga, Louis Vuitton, Prada, Burberry, Marc Jacobs, Chanel and more.

The most prevalent use of the fractional ownership concept, however, is in the vacation home sector. Because of the increasing popularity of fractional vacation home ownership and the additional complexity of dealing with real property, this topic will be the subject of another article.

David Yarian, Ph.D. is a practicing Psychologist, and a real estate investor specializing in fractional ownership of luxury vacation homes. He writes the blog Florida Fractional Ownership http://www.FLfractionalOwnership.com which covers the fractional vacation home market in Florida and around the world. His latest project, Abaco Rose, may be seen at http://www.AbacoRose.com. As a committed environmentalist he supports green building practices and sustainable development. His environmental resources website and blog are at http://www.SavingtheEarth.net.

© 2008 Permission is granted to reprint this article in print or on your website as long as the paragraph above is included.

These materials are furnished to provide general information. The presentation is for discussion purposes only, and does not constitute an offer to sell. An offer to sell a fractional interest will only be made with documentation specifically indicating that it is an offer to sell.

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