This is one tricky question as there is no specific answer to it.

Most would say that the difference between timeshare and vacation ownership is the same as that between potæto and potäto! The terms have been used interchangeably for many years now. However, with the concept of fractional ownership, the difference between timeshares and vacation ownership has become more pronounced.

The major difference between the two is in the duration of the ownership. Timeshares are typically owned for a week or so every year, whereas in fractional ownership you own the right to use the property for five to twenty six weeks. In fact with timeshares, even nightly rentals are available! Most fractional ownership contracts are deeded contracts, whereas timeshares are offered as deeded contracts, right-to-use contracts or even point-based system.

Fractional ownership being a relatively new model of vacation ownership, such properties are not as abundant as timeshare resorts. However, some large properties including a few mountain ski resorts offer both timeshares and fractional ownerships within the same property. Not all resorts can pull this off, as the differential can be charged only if the property is well located and in great demand.

Besides the higher initial purchase price, which can be eight to ten times more for vacation ownership vis-à-vis timeshares, the other costs including maintenance fees, taxes etc. too are higher for the former. But that is only fair, considering the fact that vacation ownership units are much more luxurious than timeshare properties. The amenities at the former are top-rung, including spacious closets, granite kitchen countertops, Jacuzzis, spas etc. The excellent housekeeping, concierge service and other personalized services leave nothing to be desired. Thus, vacation ownership properties cater to an elite clientele who can afford to pay the premium for the opulence. As the clientele is limited, these properties are also advertised differently than regular timeshares. No mass sales presentations here.

If you are looking for financial assistance to buy vacation property, banks and other financial institutions consider fractional ownership properties more favourably as they are underwritten as a second home. What's more, fractional ownership projects are underwritten as a second home for purchase, thus saving you some tax dollars too! Fractional ownership properties are easier to sell in the resale market compared to regular timeshares due to the relatively lesser supply and higher demand, but do not consider them an investment to reap financial benefits at a later stage. Buy with sole motive of using it, and you will not regret your investment.

Vacation ownership or timeshares - it all boils down to fun filled weeks year after year!