Fractional Ownership 101 F
ractional ownership has been around for quite some time, but it might be a relatively new term to many people. Popular in many resort destinations across the country and around the world it
falls between whole ownership, where the individual owner has sole responsibility and exclusive use of the property, and time-sharing, where more often than not you purchase vacation time in a resort and not the real estate itself. While time shares tend to lose their value quickly, fractionals follow the market trend of appreciation with the property values around them.
Brigantine Quar ters
How Does It Work? With fractional ownership, the deed
is divided among multiple owners. Like any other real estate, the assets are taxable, represent equity and offer ownership benefits such as interest deductions, depreciation and rental income. The major benefit is that costs are shared among owners. Fractional ownerships can vary from
a one-thirteenth, where owners use the property for four weeks a year, to the most popular, quarter ownership, where they have 13 weeks a year. A rotating schedule gives owners different seasons and holidays each year.
Benefits The average family takes 21 to 28
days of vacation per year. With frac- tional ownership, your vacation home will not be unused for 48 weeks out of the year. And you can pass the deed down to family members or resell it through a broker. Most fractional developments are
in high-end resorts with golf, tennis and a nearby ocean. These developments
often are associated with a management company that oversees the upkeep of the property and handles vacation rentals. Most of these properties are affiliated with a global exchange com- pany such as Resorts Condominium International, which lets owners vaca- tion elsewhere by exchanging unused weeks at the property they own.
Fractional Ownership and Hilton Head Island Russell Brown, chief executive offi-
cer of RBC Enterprises, Inc. on Hilton Head Island, South Carolina, helped fine-tune the idea of fractionalizing condominiums. In 1984, his company sold the nation’s first fractional-owner- ship condos. Brigantine Quarters, in Shipyard Plantation, is a quarter-own- ership development with 48 two-and three-bedroom condos and tennis, swimming, playgrounds and picnic areas–just a two-block walk from the Atlantic Ocean. The needs of the typical fractional
homeowner soon changed; people wanted more than just a vacation prop- erty. RBC Enterprises answered the call
CoastalCondoLiving.com | Nor thCarol
inaCondoLiving.com | SouthCarol
inaCondoLiving.com Ocean Palms Villas
in the 1990s withOcean Palms Villas in Port Royal Plantation on Hilton Head. The 96-unit development has two-and three-bedroom condomini- ums and townhomes, and ownership includes a golf and tennis membership at the Port Royal Resort facilities, as well as a management agreement with The Westin Resort & Hotel. Own- ers can use all the Westin’s amenities, including an indoor pool, a spa, a fitness center and cart-fee-only rates at the golf club.
For more information, contact Bruce Tuttle at (843) 842-5560 or by e-mail at
btuttle@rbcenterprise.com, or visit
www.RBCEnterprises.com.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99