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Fractional
ownership of dream vacation homes.
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| Is
fractional "co-ownership" right for you? |
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At this point, you must be asking
yourself:
Is fractional co-ownership right for me?
The following table provides a comparison of the estimated Use and
Costs of a typical Fractional Villa property, compared to the same
property purchased exclusively.
Please note, both forms of ownership, offer you the same "typical amount of use for a second home".
Fractional Villas® allows you to use the property anytime, subject to
reservation, with an equal right of possession. If all owners
use the property equally this would equal approximately 45 days
of use per year. With co-ownership you give up some of the flexibility and control enjoyed with 100% ownership, but you save thousands of dollars every year in doing so!
Here's the bottom-line:
Is the
guaranteed right to use the property on a specific holiday,
or week, worth
$192,689* more each year?
*See the "Cost Per Year For Time Not Being Used By
You" below.
That amount is hard for anyone to justify. For
$192,689 extra cost, you can rent virtually any comparable property,
anywhere, for those few specific days/weeks of use. If you are
willing to be flexible on your use schedule, you can save a tremendous
amount of money. Better yet, invest that amount in another
fractional ownership home, in another resort, or even an investment property, and enjoy more properties, with more leverage.
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| Ownership Comparison |
Fractional
Villas® |
Comparable
Property |
| Ownership Type |
1/8th Co-Ownership |
100% Ownership |
| |
| Use |
|
|
| Minimum Annual Usage
Right |
45 Days |
365 Days |
| Typical Annual Usage
Time (For 2nd Home) |
30 Days |
30 Days |
| Right to Use
Anytime |
Subject to reservation |
Yes |
| Requires Flexibility
In Scheduling |
Yes |
Yes, if being rented |
| Potential Rental
Income |
No |
Yes |
| Positive
Cashflow |
No |
Unlikely |
| Potential
Appreciation |
Yes |
Yes |
| |
| Costs |
|
|
| Purchase Price |
$379,000 |
$2,500,000 |
| Down payment (25%
LTV) |
$94,750 |
$625,000 |
| Annual Mortgage (75%
LTV @ 6.25%) |
$21,002 |
$138,536 |
| Annual Expenses (1) |
$6,139 |
$50,000 |
| Annual Property
Taxes |
$4,737 |
$31,250 |
| Total Annual
Expenses & Mortgage |
$31,878 |
$219,786 |
| Effective Cost Per
Day @ 45 Days of Usage Per Year |
$708 |
$4,884 |
| Comparable
Nightly Rental Value |
$1,500 |
$1,500 |
| Cost Per Day Not
Being Used By You @ 320 Days Year=88% |
$0 |
$602 |
| |
| Cost Per
Year For Time Not
Being Used By You |
$0 |
$192,689 |
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(1) Expense estimate
including: utilities, insurance, maintenance, replacement reserve,
property management.
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Fractional
co-ownership is the best solution to second home property ownership.
When all factors and
costs are considered, the answer to the question "Is co-ownership right for
you?" will undoubtedly be, Yes!
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The above
referenced costs are considered estimates only. Actual amounts of each
cost, may vary with each Fractional Villa, or a comparable property. These
amounts should be considered for general evaluation purposes only, and
not relied on as an absolute or actual cost.
Copyright
© 2005 - 2014 Fractional Villas, Inc.
All Rights Reserved
Fractional Villas, Inc.
Del Mar, CA 92014
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