Fractional ownership offers individuals the opportunity to buy partial ownership of generally high-end properties in resort areas (golf course, ski area or beach communities). Usually the fractional ownerships are divided into fourths, sixths or eighths, with each owner having an equal number of days a year to use the unit.
At first glance it looks and sounds like a time share. The main distinction between timeshare and fractional ownership is with a timeshare you buy the right to use a certain period of time (not usually flexible), but with fractional ownership you are buying real estate with more usage available and increased flexibility on scheduling. You get a deeded piece of luxury real estate which you can sell, transfer or trade like regular real estate. That being said, the cost of fractional ownership is higher than that of typical timeshare, though still much less expensive than whole ownership of a luxury home in the same location.
Depending on the property, most fractional developments provide the amenities of a first-class hotel such as concierge, housekeeping, ground transportation and grocery shopping services. Fractional properties may be hotel suites, cabins, town houses or detached homes. By only paying for a fraction of a luxury property, fractional ownership can be a much more cost-effective way to stay in desirable properties and locations.
In Mammoth Lakes there are two luxury fractional opportunities. 80|50 offers fractional ownership in one, two or three bedroom elegant condos with Gondola access, while Tallus offers fractional ownership in 5000 sq foot luxury homes located on Sierra Star Golf Course.
Fractional ownership is not right for everyone. The family that wants to come to Mammoth every other weekend or an entire month in the summer should consider full ownership properties. However, the family looking for 4-8 weeks per year in a high-end property offering both onsite and offsite amenities should consider fractional. A qualified real estate can help you determine if fractional ownership is right for you.
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Do you plan on renting out the property when you are not in Mammoth? If yes, then you are pretty much eliminating most single family homes.
Why? Most people are not aware most single family homes cannot be rented out on a nightly basis — only some areas within the Town of Mammoth Lakes are zoned transient rentals (check the town’s website).
Next, consider maintenance of the property. Maintaining property at an elevation of 8000′ is a little different than sea level. Owning a condo means you pay monthly Home Owners Association (HOA) dues and in most cases snow is removed in the driveway (parking lot), walkways and areas in front of fire hydrants. Additionally, consider roof snow/ice removal and prevention of frozen pipes are usually handled by the management company.
Owning a single family residence means you must take care of these maintenance concerns yourself. You can hire your own management company, compare pricing, negotiate the contact and make sure the work gets done.
Finally keep in mind the HOA fees in the majority of Mammoth projects include many of the typical monthly out of pocket expenses, including fire insurance and a reserve for repairs (roofs, siding, painting, landscaping, road/side walk repair, etc).
There are many great condos and single family homes in Mammoth Lakes. Before you buy, make sure you have all the facts so you can make a well informed decision. A qualified real estate professional can help.
For previous articles, visit www.sonjabush.com