What are Fractional Timeshare Points?
To understand what you have purchased, and why you were sold fractional timeshare points, it is first essential to understand what fractional ownership is.
If you have purchased with Club la costa or diamond resorts reading the following is essential.
Fractional property sales started in the rocky mountain ski resorts in the 1990s. Due to people not wanting to purchase a holiday home, that they were only going to use for a few weeks every year.
The most common fraction size being one-fourth ownership, giving owners three months of total annual holiday usage.
The title or deed of the property is legally divided into shares. Transfer of these shares is then made possible without the title or deed of the property being altered.
Fractional ownership is not the same as timeshare ownership. Fractional ownership gives much more freedom and usage benefits than offered by timeshare systems.
The fundamental difference with fractional ownership is that the purchaser owns part of the title as opposed to time. Therefore, if the property appreciated in value, then so do the shares. As with whole ownership, fractional owners can sell whenever they want, releasing capital from their ‘ bricks and mortar ‘ investment.
So how does this differ from my investment with Club La Costa or Diamond Resorts?
- You DO NOT own ‘bricks ad mortar’.
- You DO NOT own shares in the company.
- You DO NOT own an asset.
- You DO NOT own a fractional property.
- You DO NOT own a regulated investment.
The popularity of the word ‘ fractional ownership’ caused extensive rebranding by Club la Costa and diamond resorts. The term ‘timeshare’ had been tarnished by the very same people that sold you your timeshare fractional points system ! As such re-marketing was essential.
This name change falsely leads many Club La Costa and Diamond owners into purchasing a product that they presume is an investment. This couldn’t be further from the truth.
What have I purchased?
- A small percentage of an old timeshare apartment that already has no value.
- A timeshare points system.
- A colossal maintenance fee debt.
- A colossal finance debt.
- A very restrictive holiday product.