How Do Fractionals Compare With Timeshares?

They really don't. Fractionals are far more exclusive and include many more luxury amenities and services than timeshares. Timeshares usually allow just one to two weeks use per year while fractionals may offer up to 13 weeks. Unlike with a timeshare, your Innsbruck fractional weeks do not need to be consecutive and you may chose from various seasonal options.

Secondly, fractionals tend to appreciate over time while timeshares usually depreciate. There are a couple of reasons for this. With fractionals, more of the buyer's dollar goes to high quality finishes and "bricks and mortar" vs. sales commissions which can be as high as 40%-50% with timeshares. Furthermore, timeshare values have historically been poor because of the large number of re-sales on the market, not to mention a continuous stream of new developments. The fact is the secondary market for timeshares has never really developed.

Obtaining a bank or mortgage company loan on a timeshare may be difficult, rates are high, regardless of how good your credit. That's because most timeshares depreciate over time. Banks and mortgage firms consider fractionals to be appreciating assets and will often treat them like any other second-home purchase.

Conversely, there are a limited number of fractionals on the market. Most likely, that number will stay small because fractionals are built in only the very best, most highly desirable locations. Therefore, demand outpaces supply and results in property appreciation.