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Fractional Ownership Real Estate Trends in Mexico

Fractional Ownership Real Estate Trends in Mexico

Fractional ownership is popular because it allows you to invest in a property that you may not be able to afford on your own and gives you the flexibility to own vacation property and use of all the resort amenities without having full time property ownership responsibilities. Statistics show that vacation homes are used less than four weeks out of the year, but you are still tied down with having to maintain the property, pay taxes and make repairs which are especially difficult if you live a long distance away from the property or reside in another country. 

How it Works

The quality of fractional resorts is equal to the most luxurious Mexican hotels. Fractional ownership differs from timeshare interests where you are buying time. With fractional real estate ownership, you own a fractional interest in the property. You and the other owners work out a vacation schedule and hire a property management company to take care of the details for you as well as overseeing the maintenance and repairs. Each owner shares in the costs according to their fractional ownership interests. You can sell your interest or will it to your heirs. So if your own the property with four other owners, you own a 1/4 interest, with 1/4 of the risk, and you get to enjoy the benefits and amenities of your five star resort with the comforts of your own home and not a hotel. A 1/4th ownership would get each owner 13 vacation weeks out of 52 weeks, and there would be no unused weeks. 

Other ways the ownership and vacation weeks could be divided:

1/6th ownership, each owner gets 8 out of 48 weeks and no unused weeks

1/7th ownership, each owner gets 7 out of 49 weeks (3 unused weeks)

1/8th ownership, each owner gets 6 weeks out of 48 weeks (4 unused weeks)

1/10th ownership each owner gets 5 weeks each out of 50 weeks (2 unused weeks)

1/12th ownership each owner gets 4 weeks each out of 48 weeks (4 unused weeks)

1/13th ownership each owner gets 4 weeks each out of 52 weeks (no unused weeks)

1/17th ownership each owner gets 3 weeks each out of 51 weeks  (1 unused week)

It is always a good idea to keep a few weeks for maintenance and repairs. 

Foreign Citizens

If you are a foreign citizen interested in acquiring a fractional ownership interest in Mexican resort real estate, you should contact a Mexican real estate attorney before you sign any contracts to make sure you understand the ownership interest’s rights you have under Mexican law. Pursuant to Section I, Article 27 of the Mexican Constitution, foreign citizens are not allowed to own Mexican real estate that lies within 100 km of the Mexican borders or 50 km of the sea. They can have a beneficial interest in the land through a trust giving legal ownership rights to a Mexican financial institution.

Benefits of Owning Fractional Real Estate: 

  • Costs of maintaining the property are shared with other owners.
  • It’s a hassle free way to own a Mexican resort vacation property or second home without the full burdens of home ownership.
  • You get to own a luxury property for fractions of the cost of purchasing it yourself.
  • There is a high demand for fractional ownership at Mexican resort destinations so if you need to sell your interest in the property, it is easier to find a buyer. 
Right now is a great time to purchase a fractional interest in Mexican real estate. Prices are affordable and even more so when you fractionalize. You can start enjoying your vacation time immediately without having to worry about taking care of your property. When and if you decide to sell, you will be able to find a buyer much easier than selling a single-family home or a condo that you own individually. Owning fractional real estate is a win win for all owners.