Fractional Ownership of Vacation Homes Proves to be Best Option

Fractional ownership, shared ownership, better utilization of real estate use are the wave of the future. In today’s market with Sequestration diminishing some household incomes by up to twenty percent, there is a way for families to continue to own their homes. In our last newsletter, we broached the topic of families participating in the ownership of property. Case in point, daughter and son in law own a home, but due to a cut back in family income, the mortgage payment is becoming problematic. A better solution to the situation might be a co partner sharing the cost of the monthly obligation. Rather than losing the home, falling behind in the mortgage payments, the family partner supplements the obligations. Structuring a partnership wherein both parties benefit, makes sense for both parties.

Along the same line of thinking, a new concept of ownership of vacation homes has arisen. Fractional ownership makes perfect sense for an owner who wants to have a home where the family wants to spend time on a regular basis, but the property remains unused for the majority of the year. Why not own a fourth or fifth of a property with the ability to use the property two or three weeks every season, but only have the responsibility for one fifth of the upkeep rather than all. The upside compared to a time share is to have fee simple ownership and be able to take advantage of the tax deductions afforded and be able to realize a percentage of the appreciation in value as the property values prosper.

As the real estate market is rebounding, prices are stabilizing and will start to rise as supply and demand will compel that eventuality. Currently our interest rates remain at historic lows, but when they ultimately rise, the opportunity to profit from the real estate market will change. We see the opportunity now to acquire property either individually or in partnership as a unique situation. We are uniquely qualified to assist you as we have handled many acquisitions via partnerships, LLCs or corporations and are currently involved in a fractional ownership venture. If interested in any of these options please contact me to explore the opportunities.

Rates remain at the 3.5-4% range depending on the size of the loan and creditworthiness. Call us for details.

We have completed our relocation in the beautiful Symphony Woods Office Center at 5950 Symphony Wood Drive. Please drop by.

Our annual tennis tournament for the benefit for Shock Trauma will be on June 6. Please call for details.

As always we want to be your title company and real estate law resource. Email me at or call at 410 884 1160 ext 3007.


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