Financial advisors are sounding notes of caution about what they say are the drawbacks of real estate fractional ownership. So reports Financial Planning.
While these types of investments make it easy to access the rental market without having to do normal landlord work, these advisors say, they carry an extra cost and lack liquidity.
“These aren’t terrible investments,” one Rhode Island financial planner tells his clients. “But without a strategy and discipline, plus maybe a little help from an objective professional, it’s no longer investing. It’s speculating.”