Selling a Share in a Real Estate Fractional Ownership Scheme

Fractional ownership is a growing trend, but how do you go about valuing a fraction in an existing scheme for sale? What rules should be in place in a fractional scheme to prevent potentially disruptive new members joining it?

see full article here

Mayan Rivera Travel Guide

I’m removing some travel information that I had on fractional ownership news
and putting it on a blog – I’m experimenting the blogger, here is the address – Mayan Riviera Travel Guide

Neil

Fear of Fractional Ownership Will Keep You Prisoner!

OK, so a bit of an over dramatic title for this post (isn’t “Fear will keep you prisoner” part of the tagline for the Shawshank Redemption?) but there is a serious point to be made.

Whilst promoting a fractional yacht I came across a lot of resistance to the idea from people who already owned their yacht outright. “It can’t work”, the would say – “when you go to the yacht it will be dirty/broken/in the wrong place” etc. etc. Most of these comments seemed to be motivated by a deep distrust of people in general.

I think this attitude is wrong for a couple of reasons. Firstly any properly configured fractional ownership scheme should have proper change-over and cleaning arrangements in place (and penalties for breaches of the rules). Secondly, who are these people that they think are going to be wilfully destroying/abusing an asset that they own part of? Yacht charter/holiday home rental work very well even though the people concerned have no long-term commitment to the thing that they are using.

So fear of fractional ownership may not keep you prisoner but will certainly prevent you from experiencing a wider range of life’s experiences and pleasures. Generally distrust of people is a bad thing that shuts you off from some of the best things that life has to offer.

Neil

Fractional Ownership is (or Should be) the Poor Man’s Friend!

The marketing of fractional ownership has to date focused on a certain type of development, i.e. super-luxury resorts laden with facilities and services at a very high cost. This isn’t all it should be about. IN a lot of ways it is potentially more benficial for people who don’t have loads of money.

Forget about anything you think you know about fractional ownership and consider the following:

A. Think of something that you would like to own or use but can’t afford (it has to be something that you don’t need to use all of the time). Typical types of things would be leisure assets (second homes, yachts, caravans/RVs,tents), business (expensive and occasionally used machines), or functional items (a ride-on lawn mower, a garden shredder).

B. Assess how much this would cost you if you were going to buy it. If you would have bought something used then use this price, not the new price.

C. Consider how many people could realistically share the use.

Now divide B by C – doesn’t this make your proposed purchase seem more affordable? There is no reason why fractional ownership has to be about luxury (although that is very nice). It can save you lots of money as well.

Example 1: A family on a limited budget would like to save money on their holidays (or even afford to be able to go on one) by camping or caravaning. The problem is that a full camping setup for a family of 5 isn’t cheap if you haven’t got much money. The fractional solution would be to share the cost with 2 other families in their local area. They would still each be able to go on a 2-week holiday in the school Summer break and take turns at using the equipment through the rest of the Summer.

Example 2: If you enjoy yachting why not look at a fractional scheme for a used yacht. This can really bring yachting/boating within the reach of a lot of people.

Neil

Fractional Ownership Surviving the Credit Crisis

One area of the real estate market is bucking the generally negative trend, with values and sales volumes up. Fractional ownership of luxury real estate has been slowly gaining in popularity over the last 10 years or so, but now seems set to reach a tipping point and become a mainstream concept…….

Read the full article here

Neil

Fractional Ownership News

Free to enter competition, win $10,000

What you need to do:

1. Visit the post on my hosted blog :- competition entry rules and qualifying question

Read the rules and qualifying question on the above post and reply to it (answering the question) to be entered into a free competition with the chance to win $10,000.

Don’t reply to this post (on wordpress.com)!

Neil

Fractional Ownership in Vancouver/Canada

A recent news article on Vancouver-targeted website vancouver.24hrs.ca gives fractional ownership a positive press.

See the full post here- Vancouver fractional ownership story

Neil

Fractional Ownership News

Fractional Ownership in London and South Africa

I have just added details of two very interesting fractional opportunities to ReachTogether.

London Fractions sources fractional property in some of London’s most sought after locations.

Zwahili Private Game reserve  offers the opportunity to purchase a fraction of a luxury lodge or boutique hotel from R 350,000.  With the current exchange rate of approximately R 15/£ or R 8 /USD this is a very attractive offer.

Neil

Fractional Ownership News

Fractional Ownership at Deep Creek Lake, Maryland

Second Homes at Deep Creek Lake offer fractional ownership units in a stunning location on Maryland’s largest freshwater lake.  Prices start from $259,000 for a 1/5 fraction.

See Deep Creek Lake for more information.

Neil

Fractional Ownership News

Ritz-Carlton Starts Work on Kauai Lagoons Fractional Development in Hawaii

Work started this week on Ritz Carlton’s Kauai Lagoons development which includes some fractional units.  Fractional prices will start from $300,000 and first occupancy is scheduled for late 2009.  Following text taken from developer’s website:

“

Over 520 acres of land on the ocean’s shore, minutes from the airport, walking distance to waterfront restaurants and Kalapaki Beach and the perfect location to launch an adventure to any corner of Kaua‘i. A Jack Nicklaus Signature Golf experience. A meandering 38-acre lagoon where one can in the same moment enjoy the sight of a classic Chris-Craft motorboat cruising and the landing of a flock of native waterfowl. Kaua‘i Lagoons is indeed “breathtaking.”

To own a Residence at the Kaua‘i Lagoons Resort is to embrace a rare opportunity to be a part of something very unique. The perfect setting to spend a week, a month, or a lifetime. A legacy.

Kaua‘i Lagoons will be a very special place to call home.”

See Ritz-Carlton or the original news story for more details.

Neil

Fractional Ownership News