There are several reasons:
• All Fractional buyers realize that there is a limited amount of time that they have to use a vacation home and if they owned a property completely it would sit empty a lot. They also realize that although Airbnb has increased the average yearly income on vacation properties the rental revenue is still not enough to pay all of the cost of whole ownership.
• Some buyers purchase the lower priced Fractional Ownerships (up to $150,000) because whole ownership prices are beyond their financial capability. Fractionals is a way to have a vacation property.
• Many buyers who purchase the higher priced Fractionals buy after looking for a vacation home in their price range and realize that the value of properties in the North Tahoe and Truckee area has increased to the point that what they want to spend will not get them what they want. Currently there are only 13 single family homes priced under $400,000 and only four have 3 bedrooms, four are over 1300sq ft. and they are all older.
• For the buyer that wants luxury, there are some fractionals that are very nice and paying a fraction of what the type of property they want gives them the freedom to spend on other types of vacations (heli skiing, cruses, European tours, etc.)
• Another benefit for the luxury buyer is the ability to trade to other very high end properties in very desirable locations (Aspen, Maui, Caribbean, Europe).
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