Residential Real EstateCondo Trends: Fractional Ownership Of Luxury Condos the New Thing
As the real estate market continues shaking out nationally, investors thinking out of the box are looking to gain from the turnaround by joining with like-minded buyers on luxury condos.
The Daily News in Memphis, Tenn., reports fractional ownership is a new trend for buyers who want a piece of the expensive pie in resort or beach-front real estate, but who don"t want or can"t afford to do it alone.
"Fractional ownership allows a group of investors to buy a property and use it for a predetermined period," reports The Daily News, "From one to two months depending on the number of investors in the group -- and also to share maintenance costs."
While this may sound like a timeshare, the difference is the owners are actually sharing one property, rather than membership in a development. One such group is ShareCastle LLC. Managing partner Marc Diaz explains fractional ownership is a matter of cost sharing.
"As that secondary market and educated consumer starts to take notice of (fractional ownership), I think it"ll really start to grow and markets like student housing will especially be attractive for it," according to Eric Mathews, a co-owner of ShareCastle. "We"re making the luxury lifestyle more affordable for the common man or common woman."