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Fractional ownership lures real estate investors

Buyers benefit from resort amenities, rising property values

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The whole is greater than the sum of its parts? Not so when it comes to fractional ownership of recreation property, especially for families sharing a place they could not afford – or find the time to occupy – by themselves. Michael Burns, who grew up in the timeshare industry, formed Private Residents Resorts in 1999 and now is marketing a $300,000 fractional model in Sun Valley, Idaho, and a new $100,000 model in McCall, Idaho. Both projects provide a one-eighth deeded interest in the property. More destinations are planned for Mexico, Hawaii and the San Juan Islands. Fractional ownership combines traditional, full-time ownership with the affordability of timesharing and the services and amenities of vacationing at a resort hotel. These properties are usually located in international, national and regional destination resorts and sold in interests ranging from one-quarter to one-twelfth shares. Fractionals are viewed as an alternative to second home "whole ownershi...