A: Fractional ownership is a new concept in property ownership, which has just hit Hawaii. As the name implies, the buyer gets a partial (fractional) ownership of a property. Yes, this does sound like timeshares, but it's very different.
Unlike timeshares, fractional ownership has a limitation as to the number of shares a property can be divided into. In Hawaii, the maximum number is six (6). Another major difference is that each buyer gets a recordable DEED for his/her fraction. A timeshare buyer only gets an interest in a partnership.
Owning a deed has advantages such as appreciation and depreciation. Owners also have the ability to exchange the ownership under the IRC 1031 Exchange rules.
Please revisit our site from time to time as CENTURY 21 Aloha Properties is on the forefront of this exciting new type of ownership. We will be offering fractionals to our clients, as they become available. We will also be handling resales and management of fractionals.
For further information on Fractional ownership or to sell your Hawaii property as a fractional, please email us at:
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