Buying a vacation home by the slice
Sunday,
September 07, 2008
CONNIE
POTTER SPECIAL WRITER
The
Oregonian
Beach lovers can buy a luxurious vacation home at the Villages at Cascade Head for a fraction of the listed price. The catch is that they get to use it only a fraction of the time.
For many buyers, though, fractional ownership is a perfect way to match budget and time constraints.
Instead of spending $599,000 for a 2,200-square-foot, three-bedroom home, buyers can purchase a one-eighth deeded share for $120,000 or a one-fourth share for $210,000. With a one-eighth share, they get to use the home 61/2 weeks a year on a fixed weekly or monthly rotation. With a quarter share, they can use it 13 weeks a year.
"It's a chance to own a property you otherwise might not be able to afford," said Andrew Montgomery, architect for the project.
The resort community has been approved for 1,650 single-family homes, townhouses and condominiums. Every floor plan in the project will be available in fractional ownership, with some selling as low as $60,000 for a one-eighth share, said developer Jeff Teeny.
Teeny commissioned an analysis by real estate adviser Wally Hobson that showed a market for fractional ownership, especially for properties in the $200,000-and-under range. Many people would love to have a home at the beach, but can't spend enough time there to make a second home seem like a practical investment, he said. They don't feel it makes sense to have the expense of a mortgage, upkeep, insurance and taxes for a place they don't use more than a week or two a year.
But by sharing the costs with as many as seven other owners, it becomes a more attractive option financially, said Teeny.
Owners have the option to rent or trade any weeks they didn't want to use themselves. A property management company will handle rentals and schedule cleaning afterward.
Another draw is that owners have virtually no maintenance or upkeep
to worry about. The homeowners association fees ($150 a month for
a one-eighth share, $300 for a quarter share) cover all exterior and
interior maintenance, grounds, power, water and property taxes.
©2008 Oregonian