| |
|
06-18-2008, 01:38 PM
| #1 |
| Senior Member Join Date: Nov 2007
Posts: 404
Club: A&K Residence Club |  Fractional Properties Here is a link to an interesting article on the premium when buying fractional properties. I would expect the "premium" is much less with most DCs (certainly on the front end). Perhaps that is in part why DCs are less profitable. The Sum of the Parts is Greater than the Whole - SherpaReport |
|            |
|
06-18-2008, 03:53 PM
| #2 |
| Super Moderator Join Date: Nov 2007
Posts: 1,397
| Re: Fractional Properties have i not looked at fractionals enough? the only serious premium i remember seeing is little nell, because of such high demand. (as opposed to the timeshare business model.) |
|
| |
|
06-18-2008, 06:03 PM
| #3 |
| Member Join Date: Feb 2008 Location: Kingsville, ON
Posts: 46
Club: HCC + Aviara + ?? = fun | Re: Fractional Properties It has been hard for me at least - to find the sites that offer re-sales on Fractionals ... yes there are a few but only with limited locations. I really am interested in how the resale value holds up for fractionals ... how much a 'saving' will the 2nd buyer get as all those marketing costs are hard to justify on the resale price. Just like in TS's who get hit 50% for the 'soft costs' that get stripped away that the first owner had to pay for. So apart from the super hot locations how will fraction values hold? Greg |
|
| |
|
06-18-2008, 06:24 PM
| #4 |
| Super Moderator Join Date: Nov 2007
Posts: 1,397
| Re: Fractional Properties if youre looking to hold value, you have to go with pretty high end, like hotel PRCs. |
|
| |
|
06-18-2008, 06:52 PM
| #5 |
| Member Join Date: Feb 2008 Location: Kingsville, ON
Posts: 46
Club: HCC + Aviara + ?? = fun | Re: Fractional Properties The link first posted by Tarheeltraveler is interesting --especially if you hit the next button a couple of times .... One article on condo-hotel owners suing leads to this article ... Buyers of condo-hotel hybrids who lost big are now suing The summary is - you can't finance resales ... hmm .. but if you have cash ...where are the deals ?? condo-hotels are similar to fractionals in my mind --so where are the deals to be had ?? Just yet another Canadian with a dollar at par ...:-) and looking to spend but wants a deal. Greg |
|
| |
|
06-18-2008, 07:00 PM
| #6 |
| Super Moderator Join Date: Nov 2007
Posts: 1,397
| Re: Fractional Properties the "deals" IMHO are at the high end, when you get in as early as possible.. for example i believe amanpuri villas originally sold in 1991 for $1MM or $2MM, and now rent for up to $8K/nt. i believe the monthly fees there are around $5K or $6K per month. although there was also this chicago condohotel for example > The Raffaello Condominium Hotel Down to its Last 15 Units | Halogen Guides Real Estate - Luxury 2.0 Guides and Reviews the last 15 sold for $260K+ and IIRC owners made about ~$250 per night when the room was rented. and a few examples of original pricing for condo residences (not condohotel) at ritz carlton properties > coconut grove - 175 condos from $300K washington - 162 condos from $575K sarasota - 50 condos from $695K Last edited by Kagehitokiri; 06-18-2008 at 08:23 PM. |
|
| |
Linear Mode
