Fractional Ownership – How to Live Like a Multi-Millionaire

Fractional Ownership – How to Live Like a Multi-Millionaire

Do you want a more opulent way of life – but do not have the million $ in ready cash to bankroll it? You've worked hard and you've done well, but the corporate jet, the yacht and the $ 4 million seashore house are not possible right now.

Fractional Ownership may be the solution to your dilemma! With fractional ownership, a cost asset (jet, yacht, vacation home, classic car) is owned in cooperation with a number of other individuals; each owners a percentage share of the asset and has defined rights and privileges relating to the use of the asset. A management company supplies the stability and organization to allow share owners effortless and predictable access to the asset.

This concept operates well with a variety of assets that may be used periodically. For example, second homes are used by their owners 2 – 4 weeks per year on average. If you've been to a marina of late, you've probably become aware that a good amount of the slips are occupied by boats – ie, they are not in use. Corporate jets lie idil the executives require travel.

Fractional ownership offers you, the share owner, reliable access to that luxurious asset you wish for or need but do not want to pay for 365 days out of the year. And, because you are part of a pool of owners, all costs for maintenance, management, upkeep, repair, 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 utilized increasingly for ultra-luxury items. Numerous corporations offer fractional shares of corporate jets (flexjet.com, netjets.com); turboprop aircraft (avantair.com); and helicopters (heliflite.com, sikorskyshares.com).

Fractional ownership of luxury yachts – both power and sail – is widespread. 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 various companies such as extremecarshare.com, curvyroad.com , and clubsportiva.com. Fractional shareowners in these clubs may choose 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.

"Land yachts" – RVs – are yet another category of luxury item that often sees only intermittent use, so wisdom dictates fractional ownership here too. Both coachshare.com and sharer.com offer fractional shares of Monaco luxury coaches.

Racehorses have long been owned by syndicates – collectives of owners who jointly own them to spread the cost and risk. Members of syndicates were often friends or business acquaintances who knew each other and privately set up the syndicate. Now fractional ownership models are coming into use. 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 individuals from the business classes.

The fractional ownership concept is being creatively expanded into various areas. Wine Estate Capital Management makes fractional ownership of vineyards in France and South Africa available to purchasers. Many art doners find it practical to contribute a fractional share of their art to the museum of their preference, thereby including their continuing enjoyment of their collection for a portion of each year.

Luxury purses are now obtainable by fractional ownership, so if you would like to diversify your collection without purchasing them all, your dilemma is solved. Shoulderercandy.com offers handbags by Chloe, Balenciaga, Louis Vuitton, Prada, Burberry, Marc Jacobs, Chanel and more.

The most widespread application of the fractional ownership model, however, is in the vacation home sector. Because of the rising popularity of fractional vacation home ownership and the additional complexity of dealing with real property, this theme will be the subject of another article.



Source by David Yarian

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