How fractional ownership has transformed homeownership

The image of well heeled business and leisure travelers stepping aboard private jets has become ubiquitous over the past decade. What was once viewed as a privilege for very few has opened to a larger sect of affluent travelers, thanks to fractional ownership offering the ability to coown private aircraft and share maintenance costs. But, the fractional revolution isn’t just reserved for private jets, as it has also transformed homeownership.

Not to be confused with timeshares, where consumers are purchasing time, fractional home ownership allows buyers to purchase deeded fractional interest. Just like other forms of real estate, deeded fractional interest can be financed, sold or left in a will. Each deeded interest correlates to a certain amount of time each year so that co-owners can equally access their home and, similarly, share maintenance costs, often overseen by the developer.

One of the largest entities in fractional home ownership is Timbers Resorts, which has been developing and operating private residence clubs for more than two decades. One of its latest developments, Timbers Kauai at Hokuala (previously known as Kauai Lagoons), is a 450-acre luxury resort community on the southeastern coast of Kauai that has been attracting buyers looking to “right size” home ownership. They currently offer 1/12 fractional deeded interests starting at $445,000 with whole ownership priced from $3.99 to $7.29 million. With increased work from home flexibility, the property has seen heightened demand and will be soon announcing plans for its expansion.

“The fractional real estate market has become especially popular now that buyers realize they can live and work from anywhere,” says Debbie Edgerton, senior sales executive at Hokuala Realty. “Our buyers are seeking hassle-free home ownership, where their fridge and pantry are stocked before arrival, their residence immaculately maintained, and their preferred golf clubs waiting for them at tee time.”

Each turnkey residence at Timbers Kauai includes a comprehensive list of amenities: infinity- edge pools, on-site farm-to-fork dining, priority status at The Ocean Course designed by Jack Nicklaus, a fitness and wellness center, 16.5-acre organic farm, and 16 miles of walking and biking paths, as well as all the services of a luxury resort — valet, bell service, concierge, daily housekeeping, transportation, and an extensive calendar of Owner events from yoga to hula and ukulele lessons.

“Fractional owners are not buying fractional because they cannot afford to purchase a whole interest. Many of Timbers Resorts Owners already own at least one second home and many have a Timbers fractional ownership in multiple locations. It’s about right sizing their purchase based on the amount of time they plan to be in the destination,” says Edgerton.

What also separates Timbers from other fractional real estate developers is the option for owners to offer their residence as a luxury vacation rental or trade their usage to experience another Timbers property through the brand’s Reciprocity Program. This program allows buyers to experience some of the world’s most illustrious destinations, from the slopes of Bachelor Gulch to the rolling hills of Tuscany.

Inquiries for Timbers Kauai at Hokualua is through direct calls to 808- 720-6800 or visit them online at timberskauai.com.