Fractional Ownership: Wise or Foolish?
*WARNING* I am not in love with timeshare!
I am an RSPS Realtor (Resort and Second Property Specialist) that has sold condos up and down North Myrtle Beach and Myrtle Beach,
I must admit I am not fond of Timeshare. I own timeshare myself, but there is just something about it that makes me think the whole thing from the sales presentation to the fact that the companies are always changing their system from cold cash numbers to stars and reward points and colors, just makes me want to cringe thinking of ever going through that again. I like my timeshare getaway but I won’t buy another one.
I REALLY, REALLY like the penthouse in North Myrtle Beach that was listed for $750,000 recently, but THAT is not in my budget, not yet. So, what is a good place between feeling like you will never recoup your money in timeshare and owning your own 52 weeks out of the year, pay full taxes and ALL the HOAS so possibly have to rent-out your dream condo on the beach?
It is simple. You find a few other people who also WANT to own something that doesn’t agree with the requirements of owning a timeshare, but not able to outright own completely without others. SO, the result?
You get a group to divide the cost, the time and the responsibility of what you could not do yourself. So if you and a few close family and friends can EACH afford $100,000 condo, but would have to rent to strangers, you now collectively, as a group, can together own equally the property (not the time, the ACTUAL property). This also means that the quality, the amenities, and location can all be better quality because instead of a few individual condos at 100,000 you can all pay LESS and get more.
So, why is this not announced and heard everywhere? Timeshare spends and makes BIG $$$$$. They get 52 different owners for one unit, HIGH maintenance fees that NEVER go away and they will ALWAYS push that simply because that is best for them. It makes sense for them to stick with what works for them. But there may be a BETTER way for the rest of US! Those of us who tried timeshare, but want BETTER. When we do the math, we feel BETTER and entering into fractional ownership is a calculated move that we do on purpose. Not something we decide after someone wears us down for 3 hours and we just want to leave so bad we might crack (after all we were promised a free lunch and attraction tickets, didn’t want this high pressure to buy now bull). In addition, lawyers draw up your fractional ownership and for the most part it is less stressful, you actually OWN something tangible, not air, not stars, hearts, smiley faces or colors, but YOU own it, along with the others and together you decide if the sofa stays or gets changed every year. Fewer people means more time to split amongst each other as well. Rules and Regs are drawn up by the lawyer as well, but they are what YOU all had a say so in. If you can’t tell already, I am a big fan of fractional ownership. I think they are great! If you don’t have a group of friends that want to go in with you, sometimes you can find them in the MLS be sure to put fractional ownership n the search. Pawleys Island, SC has several. North Myrtle Beach has them sometimes, Myrtle Beach does too, but they go fast!
I have one currently that has 13 owners. Each owner was friends and bought an upscale unit with panoramic view of the Atlantic Ocean, 3/2 in the SeaMark Towers. One owner decided to move to the beach in Florida and is selling their portion for asking price $39,700. Getting lending for fractional ownership hasn’t been easy, so you will most likely need cash here. The HOA is only $88 per month. MLS#1808239 July 2018.
Where else could you go to Myrtle for vacation for 4 weeks out of the year in an UPSCALE condo with stunning views and only pay a low HOA?
SO if your budget is less than half of what it would cost to outright own a beach condo, and you outgrew timeshare, consider fractional ownership. Have questions or comments? call/text or email email@example.com
Love timeshare? Great! Enjoy!
I prefer fractional ownership because I can put cash in the bank after I purchase it, and I can easily count the cost and oh! NO PRESSURE!
I can’t cash-in stars, rainbows, and points! ( I could have put lucky-clovers there! lol!)
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