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One of our Recommended Realtors Lisle wrote an article which you can see at:
[ https://www.welovecostarica.com/members/1698.cfm ] but I have to confess, the more I look into it, the less I like the idea…
I have also written an article which will be published within the next couple of days which takes a very unflattering look at fractionals.
PLEASE let it rip, I would love to know what our VIP Members think of ‘fractional real estate’ in general and more specifically, fractional real estate in Costa Rica?
Scott Oliver – Founder
WeLoveCostaRica.comScott, I just “Lucked out” and got rid of my time share in Mexico. While this discussion is of a semi-different topic I can tell you first hand that of the owners I know who have had time shares they are harder to get rid of than “Aids”.
My concern would be very similar for these things. Yes I did read the article and do understand that this is probably a better deal because of the true ownership not a long term lease but still it will be interesting to see what resale is like.
Terry From TexasOne difference I can see is building repairs and maintenance. With a time share that is all included, but with a fractional, who decides what needs doing and at what cost.
If one owner says something needs repairing but the others don’t want to spend the money, do you vote on letting it fall apart?
What if you really don’t get along with your partner/owners?It might work for some, but having been in partnerships, I would like to choose who I invest with.
Alberto
Sounds a lot like a condo…same problem…my brothr just sold his condo for that exact reason…with some homeowners sueing the association and huge attorney costs along with court ordered repairs that were NOT at all necessary
The difference with a condo is you can fix up the interior the way you like it. With a fractional, you have to have the agreement of your partners to even change the paint color.
AlbertoScott, my guess is that basically the vast readership cares little about “fractional real estate.” Full-ownership rules in CR. Thanks for stepping up-to-the-plate and suggesting that you may have gone-to-press a little too early on this topic. That says volumes to your dedication to this forum membership.
You can now see the new article about:
‘Fractional Real Estate In Costa Rica – Does paying 50-100% more than fair market value make any sense?’ At [ https://www.welovecostarica.com/members/1705.cfm ]
Sorry but I tell it the way I see it and I don’t like what I see…
Scott Oliver – Founder
WeLoveCostaRica.comWe here in the US have seen this for years. Here they call it time sharing. There is high value piece of property available and they sell time, weeks, or months, to people who think they are rich. The ones in this country that want to show off as being rich are stupid where as the real rich ones are selling time shares.
I agree with you the concept is a real money maker but it drives the cost of realestste over the top. I know Americans will ruin Costa Rica, a simple life that Costa Ricans share is unacceptable to Americans and they will have to convert the native peoples to their idea of what if good.
I feel sorry for you. I feel sorry for me too. I wanted to come to CR.
Pete
Actually if you read the notes above this is really not like time shares which of course have been around for years all around the world. As was pointed out this is Real Ownership where you actually OWN a piece of the pie. In time shares you mearly get a long term lease and do not own anything. If interested in this topic besure to re-read the notes above and go to the site Scott sent as it really hits the nail on the head. Please note that as I said above I was luck enough to sell my time share…a very very difficult task if even possible. And for the record I don’t like this concept either. Yes C.R. is going to be ruined by the U.S people and I am very sorry to see this happening. I really intended to stay in C.R. but in the last 2 years cost has gone up so much that I just can not do it.
terry from TexasFractional ownership is the best way to get the most bang for your buck. The problem is that if you go through a company to do it, you are most likely going to pay above full retail for the property. It would be better to grab 4 or 5 friends or family and get the best deal on some real estate and set up your own deal. This way you are in control of who pays what and what all the rules are. As long as you have a good exit strategy for each individual to exit the property…you are good to go
Point of information: In some states in the U.S. (North Carolina is one), timeshares are not long-term leases but outright ownership as evidenced by warranty deeds. We owned five. That said, they’re a terrible deal for the owner who purchases from the developer and a heckuva deal for a secondary buyer (one who purchases from the original buyer).
Timeshares have a long history of losing value to virtually zero. Often, owners will give them away to avoid annual maintenance fees. Despite some TV advertising, the market for reselling timeshares is very disorganized and inefficient, and Terry was fortunate to sell his at any price.
I wonder if fractional ownership shares won’t go the way of timeshares. After all, you’re still trying to sell a particular block of time in a particular place with the unknown factor of the other fractional owners for a new buyer to deal with. And, unlike timeshares, fractional shares cannot be traded for time and space in any other location or saved to use in a later year. At least timeshares can be swapped and banked. And they’re much, much cheaper which is not to suggest that they’re a good buy, especially if bought from the developer.
Hallo Scott:
Timeshares offered by sound developers are excellent in concept. Disney, Hyatt, Hilton , Mariott, Wyndham and others offer a great product. I advise readers to purchase in the US and than exchange into your destination . One has recourse and a deed here. I advise your readers to always look for a POINT BASED ownership i.e. RCI . This will greatly provide flexibility in their ownership. I gladly highlight this in other message.
Timeshare Ownership, however often requires a large downpayment plus the annual membership fees. This might be tough for people not using their ownership often. Points can be a blessing .
One sould consider however that owning your vacation is , in most cases better than renting your vacation. As a timeshare owner , for many years , I utilized this often since I do travel /vacation often …and the quality of the accomodations are very often better than one could get for same price.
However I have also found an alternative which might be something your readers.. a lifetime membership in a sound luxury travelclub. I became a member of a very good one ( CAVEAT ALSO) and I gladly share some info on this. I enjoy reading your info, and will head back to CR soon again. I am considering looking into the low income housing business . But that is for another message
Edward B DeVugt
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