Fractional Ownership in Real Estate

The real estate fractional ownership model is a scenario where investors come collectively to purchase a fraction of a property. Costs and income are divided among them proportionally. This access to high-value assets like luxury vacation homes or commercial properties doesn't carry with it the burden of the whole financial liability for sole ownership. Investors buy shares that give them a share of the rental incomes and usage rights of the property, typically under the care of a professional management company. It promises lower entry costs and a possibility of passive income but comes with shared control, limited liquidity, and fees for maintenance.