Co-Ownership, known as fractional ownership, is a growing trend in reale state, especially in the second-home market.
As a legal way for two or more unrelated persons to own a property together, fractional ownership can attract buyers who seek lower mortgage payments and greater flexibility. It can work with different types of properties, from upscale homes to fourplex units. It's also an excellent way for investors to add a new revenue channel.
Many in the housing industry see the flexibility co-ownership as one possible solutions to the current affordability crisis. Some predict that fractional ownership may help decrease demand for middle-tier housing, ultimately helping home prices level off. Fans of the concept also tout potential environmental benefits from an expected reduction in new home construction.
While co-ownership is still a relatively new concept in the industry, its promise of flexibility can offer an intriguing personal and financial alternative for buyers who may want to co-own a property but live in different areas of the United States.
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