A second home has been called the ultimate discretionary purchase, something that many people would like to have but no one needs. People who do own a place at the beach, the lake or in the mountains are often quick to express frustration at not being able to spend more time there. It hardly makes sense to have the expense of a mortgage, upkeep, insurance and taxes for a place you don't use more than a couple of weeks a year.
To deal with that situation, family members and friends often have joined forces to buy a place. It cuts down on the cost and everyone gets to enjoy a place that's more than just a hotel room. In 1994, a new concept debuted in the real estate market -- fractional ownership of vacation homes. Patterned after fractional ownership of private jets, the concept formalizes the idea of a group of relatives or friends pooling their resources to buy a getaway place.
Fractional ownership offers individuals the opportunity to buy partial ownership of a higher end condo in a resort area, such as chalets with walk-out skiing in the Rockies, oceanfront villas or apartments, or island properties in the Caribbean and Europe, often with resort-style amenities including on-site restaurants, fitness clubs, golf courses and a concierge service. The arrangements usually divide the ownership into fourths, eighths, or 12ths, with each owner having an equal number of days a year to use the property. The owners buy their fraction from a management company which handles maintenance and their complete rental calendar program. Fractional property ownership is a real estate concept for which the time has truly arrived.
The advantages of fractional ownership are considerable, and can include:
Ownership of a fraction of a property with proportionate occupation rights
An opportunity to buy into a prestigious property at a highly desirable location
Huge rental potential and high rental income
Rapid capital appreciation. A more exclusive property at a prestigious development will see the greatest value increases
Resilience of the luxury market
Fraction can be sold on the open market any time and without the entire property needing to be sold
Faster resale through 'captive market' - co-owners, owners of neighboring properties, those renting in the area, and development company marketing initiatives - as well as domestic and overseas buyers
Property portfolio can be spread over a variety of types and locations
Ideal vacation home purchase solution when buying outright is not affordable
Property is looked after by a management company
Running costs proportionate to fraction and therefore minimized
Guaranteed rental program in higher end resorts
For more information please contact us:
Steven Brown - Project Manager
Call: (612) 810-1002
Email: SanctuaryTowers@gmail.com
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