Buying a vacation home by the slice

Sunday, September 07, 2008=20

CONNIE POTTER SPECIAL WRITER

The Oregonian

Beach lovers can buy a luxurious vacation home at the Villages = at=20 Cascade Head for a fraction of the listed price. The catch is that = they=20 get to use it only a fraction of the time.

For many buyers, though, fractional ownership is a perfect way = to match=20 budget and time constraints.

Instead of spending $599,000 for a 2,200-square-foot, = three-bedroom=20 home, buyers can purchase a one-eighth deeded share for $120,000 = or a=20 one-fourth share for $210,000. With a one-eighth share, they get = to use=20 the home 61/2 weeks a year on a fixed weekly or monthly rotation. = With a=20 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=20 afford," said Andrew Montgomery, architect for the project.

The resort community has been approved for 1,650 single-family = homes,=20 townhouses and condominiums. Every floor plan in the project will = be=20 available in fractional ownership, with some selling as low as = $60,000 for=20 a one-eighth share, said developer Jeff Teeny.

Teeny commissioned an analysis by real estate adviser Wally = Hobson that=20 showed a market for fractional ownership, especially for = properties in the=20 $200,000-and-under range. Many people would love to have a home at = the=20 beach, but can't spend enough time there to make a second home = seem like a=20 practical investment, he said. They don't feel it makes sense to = have the=20 expense of a mortgage, upkeep, insurance and taxes for a place = they don't=20 use more than a week or two a year.

But by sharing the costs with as many as seven other owners, it = becomes=20 a more attractive option financially, said Teeny.

Owners have the option to rent or trade any weeks they didn't = want to=20 use themselves. A property management company will handle rentals = and=20 schedule cleaning afterward.

Another draw is that owners have virtually no maintenance or = upkeep to=20 worry about. The homeowners association fees ($150 a month for a=20 one-eighth share, $300 for a quarter share) cover all exterior and = interior maintenance, grounds, power, water and property taxes.=20




Buying a vacation home by the slice Sunday, September 07, 2008=20 CONNIE POTTER SPECIAL WRITER The Oregonian Beach lovers can buy a luxurious vacation home at the Villages = at=20 Cascade Head for a fraction of the listed price. The catch is that = they=20 get to use it only a fraction of the time. For many buyers, though, fractional ownership is a perfect way = to match=20 budget and time constraints. Instead of spending $599,000 for a 2,200-square-foot, = three-bedroom=20 home, buyers can purchase a one-eighth deeded share for $120,000 = or a=20 one-fourth share for $210,000. With a one-eighth share, they get = to use=20 the home 61/2 weeks a year on a fixed weekly or monthly rotation. = With a=20 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=20 afford," said Andrew Montgomery, architect for the project. The resort community has been approved for 1,650 single-family = homes,=20 townhouses and condominiums. Every floor plan in the project will = be=20 available in fractional ownership, with some selling as low as = $60,000 for=20 a one-eighth share, said developer Jeff Teeny. Teeny commissioned an analysis by real estate adviser Wally = Hobson that=20 showed a market for fractional ownership, especially for = properties in the=20 $200,000-and-under range. Many people would love to have a home at = the=20 beach, but can't spend enough time there to make a second home = seem like a=20 practical investment, he said. They don't feel it makes sense to = have the=20 expense of a mortgage, upkeep, insurance and taxes for a place = they don't=20 use more than a week or two a year. But by sharing the costs with as many as seven other owners, it = becomes=20 a more attractive option financially, said Teeny. Owners have the option to rent or trade any weeks they didn't = want to=20 use themselves. A property management company will handle rentals = and=20 schedule cleaning afterward. Another draw is that owners have virtually no maintenance or = upkeep to=20 worry about. The homeowners association fees ($150 a month for a=20 one-eighth share, $300 for a quarter share) cover all exterior and = interior maintenance, grounds, power, water and property taxes.=20 =A92008 Oregonian