According to Growing Wealth Magazine, the fractional ownership market remains strong in sales and appreciation, despite the overall real estate downturn. "Buyers are more discriminate with their purchases," says California fractional developer Bruce Cuthbertson. "Buying a fractional for $300,000 starts to make more sense than laying down $1 million to $2 million for an entire vacation home, which [the buyer] will use infrequently." He adds that fractional properties are seeing profits from 25 to 35%.
According to the most recent Ragatz Associates survey, the luxury fractional market sales increased 7.8% in 2006 and 8.3% in 2007. There are more than 50,000 American households that own a frctional property. With the aging baby boomers looking for a combination of luxury and value, this number is expected to grow exponentially in the coming years.
Who wouldn't want a 4,000-square-foot luxury property, offering amenities like a private golf course, a personal chef, maid service, concierge to taxi you around / buy movie tickets / make spa reservations? It's hard to believe that you could be sitting on a modern black leather sofa in your own personal high-definition movie theatre, swimming in your backyard oasis complete with outdoor mood lighting and waterfalls, sleeping on a memory foam mattress and gazing out upon the beach through your nine-foot windows - all for just $500,000 (rather than $3 million.)
Source: http://www.growingwealthmag.com/?p=1844
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