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Fractional real estate ownership the ins and outs
Fractional ownership has gained momentum over the last couple of years. There are a variety of ownership entities including; timeshares, destination clubs and deeded fractional shares.
We have been involved in the sale of deeded fractional shares. What does that mean? Typically the shares are 1/4 to 1/8 ownership. Why did this evolve? There are two reasons. Firstly, the average second home user is for period of 18 days. The rest of the time the property sits vacant or is rented. Secondly as second home prices have soared affordability has wained.
Shared ownership is not new and has been successful in Colorado, Park City, Telluride, Whistler/Blackcomb and here in Tahoe. The buyers we have represented love the product. They end up with a fabulous home for the same price as an older condominium.
Ownership is deeded. It is like you and some other friends buy a property and take shared tenant in common ownership.
What do you need to know? Well, how much and how are they valued. Rather than a price per square foot you look at the price per week. In our market that ranges from $50k to $100k per week. Also what are the dues? The only additional cost that you ... more

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