May 24, 2012 in Mara Lake
You won’t find many new real estate developments that offer fractional ownership or quarter share ownership. The banks don’t really like them because of liquidity.
These type of opportunities have offered many families to obtain a piece of the recreational market whether it is on the lake, ocean, golf course or the mountains.
Now – this does not mean that you can’t buy a resort property with a friend, relative or sibling. Buying whole ownership properties with a partnership agreement is a great way to own a piece of paradise. You can split up your year in any manner that fits your schedule. You can share the costs and you can even have your own mortgages. This makes sense for so many families today that live busy and active lives with their children.
As an example you could buy a cabin today that is priced in the mid $400 K range, put 20% down ($90,000 or $45,000 split between partners) and with today’s borrowing costs could achieve a monthly mortgage payment of $1200 or $600 each. For most families this is affordable and the family benefits are measurable. This same 3-bedroom cabin would rent for roughly $2200/week in the summer months.
Here is an example of the annual costs and what they look like with shared ownership.
Purchase Price $450,000
Financing – 20% or $90,000 ($45,000 each)
Annual Operating Costs
Property Taxes $2100
Hydro and Tel./Cable $1500
Strata Fees $2500
Total Annual $20,500 / 2 = $10,250 or $855 per month
What you get for this is whole ownership titled real estate, year round use, a lakefront cottage community, 600’ sandy beach, private marine, pool / hot tub and friends for life!
So when you are having dinner with your friends or you are talking about owning a recreational property with some relatives, think about a joint ownership opportunity. It will be very rewarding.
Hummingbird Beach Resort