Fractional Equations

Fractional ownership has always been a way for the affluent to enjoy certain luxuries without the financial burden of outright ownership. Many of the current fractional ownership programs target products that people use from time to time, which doesn't justify the year-round costs associated with maintaining such items. Therefore, fractional ownership was mostly limited to vacation homes and private jets.

However, as luxury became democratized fractional ownership became a way for the mass affluent to afford luxury products in quantities that they could barely afford individually. Case in point, "Bag Borrow or Steal", an online membership community where members can rent luxury items (handbags, jewelry, sunglasses and watches) at affordable rates. It allows members to enjoy all those products without overstuffing their closets.

Individuals with more money have another fractional option: Art. Initially the playground of the Very High Net Worth and above, ownership of works of arts from old masters and modern artists is now within their reach thanks to companies such as Untitled Partners. They offer fractional ownership of Art on a rotational basis to small groups of affluent investors. The groups collectively own the pieces and keep them on a rotating 3 month basis from a calendar they agree upon. Premier Art here in Atlanta is the leading African American company offering such services and even more, when it comes to African American Art.

At an even higher level of wealth, individuals also became prudent in their spending, but new fractional ownership categories surfaced. Synchrony, based in Fort Lauderdale, FL, offers yacht fractional ownership to the tune of $4.8 million for 5 years ownership in a $20 million yacht (starting rate). "For six weeks a year, Synchrony yacht owners can access any yacht in the company's luxury fleet while maintaining a vested interest in one specific boat" without having to worry about maintenance costs.

These fractional options allow people to keep living the lifestyle they are used to in a less frivolous manner and with more financial acumen.