As the real estate market continues shaking out nationally, investors thinking out of the box are looking to gain from the turnaround by joining with like-minded buyers on luxury condos.

The Daily News in Memphis, Tenn., reports fractional ownership is a new trend for buyers who want a piece of the expensive pie in resort or beach-front real estate, but who don't want or can't afford to do it alone.

"Fractional ownership allows a group of investors to buy a property and use it for a predetermined period," reports The Daily News, "From one to two months depending on the number of investors in the group -- and also to share maintenance costs."

While this may sound like a timeshare, the difference is the owners are actually sharing one property, rather than membership in a development. One such group is ShareCastle LLC. Managing partner Marc Diaz explains fractional ownership is a matter of cost sharing.

"As that secondary market and educated consumer starts to take notice of (fractional ownership), I think it'll really start to grow and markets like student housing will especially be attractive for it," according to Eric Mathews, a co-owner of ShareCastle. "We're making the luxury lifestyle more affordable for the common man or common woman."

Published: June 25, 2008

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Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.