If the cost were the same, would you rather own a vacation home in the hills of Tuscany or holiday digs in London, Aspen, South Beach and Rio de Janeiro?

If you prefer the latter, you're not alone. A growing number of Americans are following the lead of well-heeled Europeans and investing in fractional ownership of vacation property. For the price of that Tuscan villa, you might own quarter shares in the four other destinations.

As a fractional owner, you become a co-owner of a vacation property; you split the purchase price, maintenance and taxes with your co-owners, as well as the property's appreciation down the road.

The advantages of fractional ownership are numerous:

Investment diversification. You don't have to bear the full financial burden of a holiday house you will use for only a few weeks a year.

Buying power. You might be able to buy a far more desirable property or one in a better location than you could have afforded alone.

Location. With a do-it-yourself fractional, you're not tied to properties on the tourist strip, and might opt instead to buy in a more-desirable -- and affordable -- neighborhood.

Culture cushion. Split the obstacles of setting up house in a foreign country among the group -- or better yet, buy into an already established fractional in your country of choice.

No rental headaches. Although some groups do allow owners to rent out their allotted time, others prohibit it, as do certain locales.

Equity participation in the property's likely appreciation.

Control over the ownership, maintenance, even the decor.

Travel diversification. Flexibility to co-own homes in several locations rather than being tied to one.

Business expense. Want to reward your employees, woo your clients and write off part of your fractional? You might be able to if you use it for business.

The disadvantages are few but can be significant. Though their number is growing with demand, there are still relatively few lenders willing to finance the purchase of a fractional. All kinds of financial foibles can arise if you fail to carve the terms of your fractional in stone with the help of an attorney familiar with the nuances of this emerging field.

The pro-rata shares might add up to more than what the property would have cost a single buyer. Be as careful in selecting a vacation fractional as you would your own home, because there is no guarantee it will hold its value, even in a resort location.

Andy Sirkin, attorney and partner in Sirkin Paul Associates of San Francisco and Paris, which specializes in fractional ownership, says fractionals reflect the changing lifestyles of baby boomers who want either to recoup some of the outlay on their little-used vacation home or diversify their vacation destinations without having to sell the place or, worse, rent it.

"This way, they have use of the house when they want it, the house is not beaten up by being rented out, and they're not bearing the entire cost of acquiring or maintaining the house. Plus, they don't have the management headaches of renting it out," says Sirkin. "That is what is causing people to turn to this in increasing numbers."

Fractionals are all the rage just now, with megadevelopers such as Ritz-Carlton, Four Seasons, Marriott and Interwest busily marketing private residence clubs, or PRCs, in their luxury resort properties, hoping their four-star pedigrees will lure boomers away from do-it-yourself options.

Would you rather be a direct owner in a small fractional or a luxury PRC member? Sirkin says the choice once again comes down to equity and control.

"If you buy a nice house in a desirable resort area, that is going to hold its value, period."

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