Families and friends have been purchasing vacation homes together for decades. Sharing the purchase price and expenses together has made vacation home ownership a reality for millions of Americans.
In recent years, prices of luxury homes in highly desirable vacation areas like the Hawaiian Islands rose dramatically. Increasingly, even for those who can afford to buy a second home outright, fractional ownership has become a very practical and attractive alternative. The rapid growth in the number of new high-end fractional properties has made it possible to enjoy all the benefits of Hawaii real estate ownership at a fraction of the cost.
The strong demand for luxury vacation homes in premier resort areas like Princeville, Kauai, is expected to continue for decades to come. This is based largely on the principle of supply and demand. Fueling this demand are seventy-eight million baby boomers, many of whom have significant financial resources and a desire to enhance their quality of life.
The result, fractional vacation ownership, has emerged as the fastest-growing segment of the real estate market in the United States over the past three years and, according to industry experts, is expected to double again in the coming few years.
According to Ragatz Associates, a leading international consulting and market research firm specializing in the resort real estate industry:
- It is estimated that total sales volume in the shared-ownership/use industry in 2007 was $2.3 billion.
- The industry grew by 8.3 percent in 2007, despite the dramatic decrease in the country’s overall residential-resort industry.
- It is estimated that 50,000 households have purchased shared-ownership.
- Various feasibility analyses, consumer surveys and focus groups recently conducted by Ragatz Associates strongly indicate a growing public awareness, acceptance and interest in purchasing fractional real estate.
Fractional real estate ownership is very much like ownership of your principle residence. As a fractional owner, you will enjoy the peace of mind that comes with having a deeded interest in your vacation home. In "legal-speak," you have a fee-simple, undivided fractional interest as a tenant in common with each of the other owners of your home.
Simply stated, owning a deeded interest in a private fractional residence entitles you to all the benefits and rights that come with normal home ownership. A set of owner's documents defines how the time will be divided, how bills will be paid, and how decisions will be made.
As tenants in common, all owners are responsible for their portion of the annual operating costs (taxes, insurance, utilities, maintenance, cleaning, property management fees, etc.). In most fractional ownership plans, each owner has an equal percentage of property ownership and thus shares these expenses equally.
Fractional Ownership Financing Is Here
Until recently, shared ownership of a vacation home made financing a real challenge. But now, because of the significant growth in the fractional ownership industry, financing of fractional homes to qualified borrowers is now more affordable and more available than ever before.
Please call us to learn more about the financing options for our currently available Hawaiian Islands luxury fractional homes.
You will own your vacation home in partnership with other like-minded people who desire to own a luxury Hawaii vacation home and who recognize the value and benefits of fractional ownership. Demographic research into high-end fractional owners yields very few surprises: most fractional owners are well educated, professional people with strong annual incomes and net worth.
They understand that owning a second home with other independent owners requires a small degree of communication during the year, including participation in the annual fractional owners’ meeting. This important meeting will be facilitated by the Property Management company.
Our goal is to help you live your dreams now, by owning your piece of paradise without the hassles and cost of traditional Hawaiian vacation home ownership.
Bright Hope Designs,