Fractional Ownership: Getting Your Piece of a Vacation Home!

Canadians who cannot afford the cottage of their dreams or who do not want to put all their financial eggs into one recreational basket may find that shared arrangements offer a variation on solo ownership.

Fractional ownership comes with lower out-of-pocket costs than buying a traditional cottage because each investor is leveraged against the group of investors. The Concept of Fractional Ownership, which is relatively new to Ontario, has been providing alternative vacation ownership opportunities in the United States and Europe for more than 15 years. Each owner has the option of purchasing 5 or 10 week fractions, providing summer fixed weeks, and additional rotating weeks throughout the year.



Forget time shares, and get ready for Fractional Ownership, the new trend in low cost property ownership. The price is an affordable range for the average individual.

A second home has been called the ultimate discretionary purchase, something that many people would like to have but no one needs. People who do own a place at the lake are often quick to express frustration at not being able to spend more time there. It hardly makes sense to have the expense of a mortgage, upkeep, insurance and taxes for a place you don't use more than a couple of weeks a year.

To deal with that situation, family members and friends often have joined forces to buy a place. It cuts down on the cost and everyone gets to enjoy a place that's more than just a hotel room. In 1994, a new concept debuted in the United States, fractional ownership of private jets, the concept formalizes the idea of group of relatives or buddies pooling their resources to buy a getaway place.

Fractional ownership offers individuals the opportunity to buy partial ownership of a really nice place in a resort area. We're talking chalets with walk-out skiing, water year round homes or condos.



Fractional Ownership is far more preferable to a timeshare because owners have title to their share of the real estate. You can sell it, will it, pass it on to people and in a really hot real estate market you can profit from rising prices, if all goes well.

How it works! TRUE Value Fractional Ownership!

Most Fractional Ownership plans I've inquired about in Muskoka, require an investment starting from approx. $49,900. The arrangements usually divide the ownership into fourths, eighths, or tenths, with each owner having an equal number of days a year to use the unit. The owners buy their shares from a management company, which handles maintenance and scheduling everyone's time. So far so good. I have a problem with the fact that these properties are being over sold. An example of this is as follows: let's say you have a year round waterfront property valued at $300,000 and 10 investors. That would mean $30,000 each investor right - WRONG. These companies are over selling the real estate and pocketing the difference. Instead of a $30,000 investment they require double that amount to buy in. That is not the way to invest in Real Estate. TRUE Value Fractional Ownership allows you to buy in at today's value, no more no less. The concept is great especially when you add TRUE Value Purchasing.



For further information on how you can meet like minded people to invest with call David McIntyre REALTOR® RE/MAX Rouge River Ltd. at (905) 427-1400.