How fractional ownerships can offer you million-dollar vacation homes for a fraction of the price of buying & the advantages of investing in one
Owning a vacation home is something that is synonymous with luxury living. I think of private jets and fancy cars parked in the driveway of a mansion on the sand, which is something far out of reach for the majority of the population. But owning property in a desirable destination doesn’t always have to break the bank. Fractional ownerships have been increasing in popularity in common tourist destinations, such as ski resorts and beach cities. Why? Here are the main reasons why we think fractional ownership is the future of vacation homes.
Get rid of the need for finding tenants
According to statistics found by Andy Sirkin, a recognized expert in fractional real estate ownership, most people only use their vacation home for 17-30 days each year. This leaves up to 348 days that your vacation home will either sit empty, or you will need to find a tenant to occupy the home. In addition, the time that the owner wishes to use the property is usually the most desirable time for renters as well. Finding eligible tenants can be a full time job in itself, and hiring a property manager and realtor can reduce your proceeds from the rent dramatically. Another pro to fractional ownerships is that if you do wish to rent out your home during your allotted time, it can usually be worked into the purchase contract.
Lower purchase and maintenance costs
Fractional ownerships can save you hundreds of thousands of dollars right off the bat. This leaves more room in your budget for a larger home in a more desirable location. Aside from the one time cost of buying a vacation home, the upkeep and operating expenses add up. After the purchase of a home, the buyer is responsible for taxes, insurance, utilities, furnishing the whole home, and other various expenses. Fractional ownerships allow the burden of these costs to be shared among all owners, greatly reducing these expenditures.
It’s a guaranteed vacation
Life can be unpredictable, so sometimes it’s not easy to take a vacation. By purchasing a fractional ownership, you can guarantee that you are going to set time aside for yourself every single year. Locking in a yearly vacation seems like a pretty great investment to me!
Fractional ownership is continuing to grow in popularity. Some people are choosing to buy fractional ownership instead of vacation homes, and others are even selling off fractions of the vacation homes they already own. No matter what your price range or lifestyle choice is, purchasing a fractional ownership is a great way to enjoy a yearly vacation without the stress and high costs of owning a second home.
Information provided by www.andysirkin.com/HTMLArticle.cfm?Article=122 www.streetdirectory.com/travel_guide/65252/real_estate/fractional_ownership_of_property___the_advantages.html & http://www.vacationnest.com/buying-a-fractional-vacation-home/