Fractionals

[trying2makeabuc]

I own six lots and am thinking of building 6 houses on them and possibly selling them as 1/8 units. What is the collective intelligence of this board? Good idea? too new a concept? Too many condos on the market as an alternative? premium? Do the realtors out there get any requests for them?
Thanks.

 

[SHELLY]

I own six lots and am thinking of building 6 houses on them and possibly selling them as 1/8 units. What is the collective intelligence of this board? Good idea? too new a concept? Too many condos on the market as an alternative? premium? Do the realtors out there get any requests for them?
Thanks.

:roll:

I'll bite...where are the 6 lots located?
.

 

[Bobby J]

I have never had a request for anything like a fractional... I think it may work but does not seem to be a hot item. It may become more popular when we leave this hot buyers market. The deals are too good for buyers to want to get wrapped up in fractionals IMO.

 

[beachmouse]

In so many cases, the price point for fractionals just doesn't make sense. They're always going to appreciate slowly compared to single owner units, and if you run the numbers, the cost to rent the same place for one month per year for the next twenty years is going to be significantly cheaper than the cost to buy and carrying costs associated with buying the fraction, assuming average inflation.

Unless you've got a killer or unique location that people see a need to get locked into, they don't make sense.

 

[egrp]

i think most people that buy fractionals what the services and amenties that often accompany them. plus there is plenty of competition from watersound beach, rosemary, watercolor, and magnolia.

good luck tho

 

[trying2makeabuc]

:roll:

I'll bite...where are the 6 lots located?
.

1 mile west of sandestin. 3 lots on the beach, 3 first row. I understand the concern another poster said about the economics but look at the success of Disney, Marriott and RCI projects. I feel that baby boomers won't be like their folks who have a retirement home or spend half time in two locations. I feel that we will have one or two primary homes and one or two vacation spots that we go to every year.

This concept is still pretty new though. Only some realtor web sites even list them. Because of so many great seasons, Destin is a perfect market for it. Heck, I know a friend who did great selling 1/4 shares in northern MN.

Yes, there is a lot of inventory and for the next two years, that'll be a problem. Whether the units become single family or fractionals.) I just feel that people want to own real estate. This may be irrational but I really see this as a wave of the future. 4-6 weeks at the beach is more than most people could dream of.

 

[Bobby J]

1 mile west of sandestin. 3 lots on the beach, 3 first row. I understand the concern another poster said about the economics but look at the success of Disney, Marriott and RCI projects. I feel that baby boomers won't be like their folks who have a retirement home or spend half time in two locations. I feel that we will have one or two primary homes and one or two vacation spots that we go to every year.

This concept is still pretty new though. Only some realtor web sites even list them. Because of so many great seasons, Destin is a perfect market for it. Heck, I know a friend who did great selling 1/4 shares in northern MN.

Yes, there is a lot of inventory and for the next two years, that'll be a problem. Whether the units become single family or fractionals.) I just feel that people want to own real estate. This may be irrational but I really see this as a wave of the future. 4-6 weeks at the beach is more than most people could dream of.

I truly believe with time fractionals will be a hit like they are in Vail but right now too early in the Panhandle. We are always a few years behind...

 

[Smiling JOe]

This concept is still pretty new though. Only some realtor web sites even list them. Because of so many great seasons, Destin is a perfect market for it. Heck, I know a friend who did great selling 1/4 shares in northern MN.

Maybe there is a reason why most Realtor websites don't list them. I know of a couple of people who own Fractionals, who like them, yet I know plenty of people who own them who really dislike owning them -- primarily due to something mentioned above -- much cheaper to rent something, plus, they are much more difficult to sell than other properties. The expenses are often high, and your time of use is not too flexible, as opposed to renting and coming whenever you want.

I've never had anyone inquire with interest regarding Fractionals.