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If a one-off vacation just isn't enough, consider fractional ownership, which consists of several people co-owning and dividing up use of a holiday home, as a result cutting down on upfront costs. Fractional ownership also is cheaper than renting in the long run. Options include a private-residence club like the Fairmont Heritage Place in Dubai, set to open in 2010, where 50 properties each will be divided into 10 fractions. While the initial cost of buying may be higher than renting for the summer--these fraction ownerships can cost upward of $100,000--once your mortgage is paid off, the place is yours. What's more, you can sell your fraction--possibly for a profit--in the coming years.

Quoted from Forbes Lauren Sherman, 10.09.08

Fractional Ownership has been gaining popularity in both US and Europe. Many vacation home owners have realized the benefits of having a worry-free vacation home which they can use for themselves or rent for a steady rental income. Owning a vacation home on your own can very expensive for a property that is used for a couple of months a year. With fractional ownership, the property is co-owned by 4-6 owners who share the same interest in the travel destination and desire to own a valuable real estate property.

As the general housing market is going through a downturn, fractional ownership has become more attractive because it shields individual owners from going through big ups and downs. It provides a sense of safety for your investment.

Another benefit of fractional ownership is it gives you the ability to own a property that would be outside your budget if you were to own it alone. Most of these luxury homes cost millions of dollars and located in the prime resort locations around the world. Unlike timeshare, which is not a real ownership, fractional ownership is true deeded ownership. All the appreciation of your property goes directly to you, the owner. Whereas a timeshare gives you the right to use the property, but there is not ownership involved.