As you peruse real estate opportunities in the MLS you will come across listing opportunities defined with the property classification of “Interval Ownership”.
Interval Ownership is a fee simple ownership and contains the same rights as any other property conveyed by deed. Interval ownership is technically a system of timeshare ownership in which the owner acquires title to a specific property for a certain period of time each year (typically certain week or weeks).
Interval Ownership, also commonly referred to as “Fractional Ownership” – has an investment approach in which the real estate asset is split between the individual shareholders. All of the shareholders will then split the benefits of the asset, such as income sharing, reduced rates, and usage rights based on time. Only one owner can use the property at a particular time.
Unlike other “timeshare” properties, with Interval Ownership each interval is a deeded share so you own a piece of property and not just a block of time. The intervals can also be mortgaged and the value of the interval can increase just like the appreciation opportunity of any other real estate asset. A few of the Pros of Interval Ownership are:
- Deeded ownership
- More affordable
- Real estate value that will match market trends
- Fewer owners