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Fractional Luxury Vacation Home Ownership

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Fractional Luxury Vacation Home Ownership
What is it?Is it something to consider in order to sell your home or purchase a home?

This innovative new trend is one sector of the real estate market that is growing rapidly. It differs from timeshare ownership in which an owner is deeded a specific period per year or points to use. Fractional Luxury Home Ownership offers a buyer the ability to purchase a property by a percentage. The percentage of ownership offers a portion of useage in proportion to amount of cost and overhead. The property is deeded to the owner with an agreed schedule between the owners. It offers buyers the ability to purchase a property as a "second home" and only be responsible for a portion of the purchase price and upkeep.

For example, on a purchase of a $6,000,000 home which includes 100% of the costs for repairs, maintenance, utilities, etc. Studies have shown the average number of days per year that a vacation home is used is approximately one month. With fractional ownership one may purchase 1/8 share of the home for $750,000 and enjoy 45 days useage per year and have the management company handle the repairs, maintenance, and cleaning.

Part of standard home ownership includes dealing with maintenance issues and upkeep. That is a challenge when a 2nd home owner has such a short period of time visiting their property. When you arrive at your fractionally owned property a concierge will remove the homeowners personal items from the owner's closet and place in the directed closets, drawers, cabinets, including placing personal items such as pictures on respective tables. Have your refrigerator stocked with your favorite groceries, refreshments and fresh flowers awaiting on the counter.

Estate Home Fractional Ownership - own 12.5% or 25%

Fractional ownership offers all the benefits of regular real estate property ownership including appreciation, depreciation, interest and expense deductions. The property fractional may be sold, gifted or willed.

Many owners find fractional ownership appreciates better than owning a vacation home individually. Many see an increase of 1.5 to 2 times the amount they would have sold the entire property.

During challenging times in the real estate market what better way to sell a luxury home! Many owners find that by fractionalizing their vacation home they may maintain a share to use at the same time reduce their current overhead required for their 100% of the property. Realtors may market fractional ownership the same way they would list and sell an entire property. An innovative way to enjoy your luxury property while at the same time save time and money on your investment.

Posted by

Andrea Tsakanikas

Licensed Real Estate Broker

iLuxRE

(954) 630-1300 Local

(866) 908-MLS1 Toll Free

Info@iLuxRE.com

www.iLuxRE.com

2701-C East Oakland Park Boulevard

Fort Lauderdale, Florida 33306

 

Robert Vegas Bob Swetz
Las Vegas, NV

Hello Andrea and some very interesting information, I have thought of purchasing condos around the country where I can stay for short periods of time and renting them out the other months ...

Vegas Bob

Nov 20, 2010 07:29 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Interesting concept. 

Thanks for pointing out "This differs from a timeshare" because that was my first thought. 

I suppose there is going to be some separate agreement, or perhaps a restriction in the Deed, to prevent misunderstandings and a possible suit for partition?

Nov 20, 2010 07:44 AM
Anonymous
Mark Peterson

Our company founded the fractional real estate and private residence club concept in Park City UT in 1991...it's taken a long time to get luxury brokers to embrace the concept. Refreshing to see someone who gets the fact it is and will be for a long time, the smarter way to own a luxury vacation home. 

If you know of any high-end condos where the developer is holding the bulk of his inventory unsold. We will partner with you to turn into a residence club. 

Mark Peterson - President, Residence Club Partners 

Nov 21, 2010 07:11 AM
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