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Thread: Fractional Ownership - need your thoughts

  1. #1
    havasumimi
    Hey everyone,
    With so many people only using their second home part-time, we are looking into a new program that allows for fractional ownership. It would make buying a second home much more affordable too, as you would only being buying a portion of it. The difference between this and buying with a partner is that it allows for you to be able to sell off just your portion....similiar to a time share. The home is also managed by an approved management company. We are just beginning to get info on the loan programs, appraisals and management info.
    Would love to hear some opinions and if anyone has already done this .... please share...
    Thanks!
    Mimi

  2. #2
    Mandelon
    You could own variable percentages?? Say 25 or 50% and get it one or two weeks a month or even less like a 52nd of the home and get only one week a year?
    This would be similar to houseboat shares I suppose.

  3. #3
    ChumpChange
    I've had people offer to buy 50% of my boat and 50% of my Havasu house as well. Unfortunately, some people don't like to share as they think nobody maintains their things as nice as themselves.....including myself.
    Wouldn't a timeshare at the Nautical just be easier?

  4. #4
    havasumimi
    I've had people offer to buy 50% of my boat and 50% of my Havasu house as well. Unfortunately, some people don't like to share as they think nobody maintains their things as nice as themselves.....including myself.
    Wouldn't a timeshare at the Nautical just be easier?
    I have found out that fractional interest with a fractional loan requires a management company to maintain the property. The biggest difference between it and a timeshare that I can see at this point is that single family homes tend to appreciate more than a time share. I know my time share isn't even worth selling right now *lol* - if ever. So even if your just selling off your portion, it should go up in value.
    Franctional ownership is new to us too. They are doing it now with houseboats, even luxury cars, why not a house in Havasu. I will let you know as I find out more.
    Thanks for the post...

  5. #5
    nodigg
    I've been mulling this idea over for a year or so. Did a small experiment with the concept on a Balboa duplex a while back. Worked out great but now I want to try to expand on the idea and get a Hawaii house with about 10-12 partners. I think this could be the way of the future? Also considering it for the new house in Havi.

  6. #6
    BOBALOO
    The guys at my work have a 10 person fractional in Costa Rica that works pretty well.
    But with that said, I find that sharing anything usually leads to resentment and hatred.
    I know a few boat partners that cant stand each other b/c the "other" guy does not take care of the boat.
    BOB(would rather have lower cost stuff than share)ALOO

  7. #7
    PaPaG
    Hey everyone,
    With so many people only using their second home part-time, we are looking into a new program that allows for fractional ownership. It would make buying a second home much more affordable too, as you would only being buying a portion of it. The difference between this and buying with a partner is that it allows for you to be able to sell off just your portion....similiar to a time share. The home is also managed by an approved management company. We are just beginning to get info on the loan programs, appraisals and management info.
    Would love to hear some opinions and if anyone has already done this .... please share...
    Thanks!
    Mimi
    I would suggest waiting 12 to 18 months for the market to get closer to bottom and then buy something on your own...sharing is great if you can get along but most that do can't (unless you have a management company control the whole thing) this way you can't fight over big weekends, vacations and so on...I am betting that the prices are going to drop another $50.00+ per sq. average in Havi within 18 months..just my .02

  8. #8
    havasumimi
    I would suggest waiting 12 to 18 months for the market to get closer to bottom and then buy something on your own...sharing is great if you can get along but most that do can't (unless you have a management company control the whole thing) this way you can't fight over big weekends, vacations and so on...I am betting that the prices are going to drop another $50.00+ per sq. average in Havi within 18 months..just my .02
    We are all wondering how low it can go here. We have gotten to the point of sellers coming to escrow with cash to close just to save their credit and prevent forclosure. So, how much lower can it get?? Most people can't sell for less than they owe. It is unfortunate for the sellers but it does make for a perfect market for buyers. There may be room for some older homes to come down but the market as a whole here is LOW and there are MANY homes on the market that are for sale for just what they owe plus closing - that's it. They are even willing to loose their down payment from when they bought it. There is no more room to come down on many of the homes....
    So, sure you could wait and see what happens but I think some people will be missing the boat if they don't pick up on something that has bleeding sellers willing to net zero - right now. We haven't had any luck with short sales with the banks so even the forclosures are asking the same as many of the current sellers..... Who knows what interest rates will be like 18 months from now too....If everyone waits to buy when everyone else is buying they are sure to pay a higher price. Just my thoughts....

  9. #9
    PaPaG
    We are all wondering how low it can go here. We have gotten to the point of sellers coming to escrow with cash to close just to save their credit and prevent forclosure. So, how much lower can it get?? Most people can't sell for less than they owe. It is unfortunate for the sellers but it does make for a perfect market for buyers. There may be room for some older homes to come down but the market as a whole here is LOW and there are MANY homes on the market that are for sale for just what they owe plus closing - that's it. They are even willing to loose their down payment from when they bought it. There is no more room to come down on many of the homes....
    So, sure you could wait and see what happens but I think some people will be missing the boat if they don't pick up on something that has bleeding sellers willing to net zero - right now. We haven't had any luck with short sales with the banks so even the forclosures are asking the same as many of the current sellers..... Who knows what interest rates will be like 18 months from now too....If everyone waits to buy when everyone else is buying they are sure to pay a higher price. Just my thoughts....
    Agree to some point but it is not always up to the seller on how low they go with their home prices and in times like this the market and economy set the price not the seller. As is happening on in the bulk of the US houses are at a record rate being foreclosed and repo'ed as we speak...right now 1 in every 36 homes in Las Vegas is under foreclosure. On the news every night.. San Diego and other hot spots are worse off. Havi has gone down but not hit hard YET, it will go down much more because most of the rise in home prices and demand was due to all the $ being made in Calif, AZ or Nev on rise in first home equity and construction jobs, and investors or vacationers were able to buy a 2nd vacation home. Now that the boom is busting I think the foreclosure rate in Havi will quadruple within the next 12 months, I HATE to see good people lose hard earned money but this is a fact of life and all the encouraging words from the real estate or mortgage industry is not going to stop this bust from continuing.

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