Luxury at a Fraction of the Cost
By Myles Lawlor
The term “shared ownership,” sometimes referred to as “fractional ownership,” is becoming a household phrase as the concept catapults into the 21st century. With prices skyrocketing, and a hectic work pace cutting leisure time to a minimum, the idea of sharing the cost and use of luxury items makes sense. And that’s what this type of ownership is – asset-sharing that enables purchasers to enjoy items they might not be able to otherwise afford, for a more realistic amount of time than sole ownership offers.
It started years ago with the sharing of jets, and creative-thinkers have jumped on the shared/fractional bandwagon for other expensive items such as jewelry. Think about it – how many times each year will a woman wear a $40,000 necklace? There are even asset-sharing handbag clubs for those who want to carry Luis Vuitton and Prada without carrying steep credit card charges to do so. Through www.shouldercandy.com you can “own” a $600.00 Marc Jacobs chocolate leather satchel for $ 65.00 for the first week and $25.00 for every week after that.
People are enjoying shared ownership of everything from race horses to yachts, artwork, vineyards, helicopters and Ferraris – items that might otherwise be under-utilized assets. If you want to impress, purchasing a share of an 1887 Van Gogh on canvas from www.theartflex.com might be just the thing. Or maybe a share of a Monaco Dynasty motorhome from www.coachshare.com (starting at $135,000 per share) would win your family’s undying love. If you prefer cruising on water to the highway, check out www.aboardtheworld.com and www.yachtshare.com.
One of my favourites is The Number One Pig Consortium (www.numberonepig.co.uk), which offers shared ownership of England’s “very best, rare breed, free-range pigs.” At maturity, your portion of the pig is delivered to your door so you can add it to your best pork recipes. Whatever your desire, chances are that someone, somewhere, is trying to find a group of people who want to share in the ownership of something none of them can afford, or want to own alone.
The concept of shared or fractional ownership has also taken a prominent place in the world of vacation property. In 2006, fractional real estate reached $1.65 billion in sales for the U.S., Canada and the Caribbean – an increase of more than 30 per cent from 2005. Recently, Harvard University reported that the popularity of second-home ownership is on the increase, with members of the middle class opting to enjoy this lifestyle for several weeks each year through shared rights to a luxurious property. This emerging trend is alive and well in Ontario, where the concept of second-home ownership is practically bred in the bone of generations of cottage owners.
Entering the four-season vacation home market is out of the financial reach of a substantial portion of today’s potential purchasers. Plus, many owners of recreational properties find they are spending less and less time enjoying this costly asset they pay for year round. Sharing ownership offers an affordable, logical alternative for both groups.
Fractional or shared ownership of a vacation property offers a great advantage over time-sharing; namely, that fractional owners own equity in the property, and can sell, will or gift their share. Other benefits include an affordable initial cost, which means vacationers can indulge in accommodations they might not otherwise be able to consider. This may be anything from golf communities with five-star hotel-style amenities, to ski chalets and cottages nestled into breathtaking surroundings.
Usually in a shared ownership relationship, co-owners pay annual fees and form an association to handle maintenance, cleaning, upkeep and repairs on the property - meaning their vacation is truly a holiday, without things like dock repairs and cleaning eating into their precious time. Typically, everything is shared, including furnishings, recreational facilities, docks and boats. And unlike many second homes, which are furnished with garage-sale hand-me-downs, fractional ownership properties tend to encompass high quality appointments, appliances and fixtures.
Recent statistics indicate that vacation home owners use their properties only a small percentage of each year. Shared ownership allows people to enjoy their vacation residences for all of their holiday time, or to choose to do something different occasionally without feeling guilty because of a large investment in a traditional second home. With vacation properties in Ontario rising in value, the idea of owning part of one of these equity-building residences is tempting an increasing number of purchasers. Shared ownership of a vacation property allows owners to revel in a luxurious lifestyle, pay only for the time they use it, and replace working with playing. And isn’t that what vacations are all about?
Some companies even offer shared ownership of exotic sports cars like a Ferrari Testarossa or an Austin Healey - just the thing to drive to your new vacation home where you can hang your fractional artwork, wear your fractional jewelry and carry your fractional handbag!
For a listing of vacation property fractional and shared ownership opportunities in Ontario, visit www.fractions.ca
http://www.articlealley.com/article_192781_33.html
