Fractional Ownership

[hschmid]

Hi everyone!

There is a new resort project being proposed for Mt Hutt (South Island) offering fractional ownership of apartments.

This is where you buy 1/2 or 1/4 or even 1/12 of an apartment (as tenants in common).

I've googled fractional ownership and it seems to be a popular and growing trend in vacation home ownership.

It's a bit like boat syndication.

Its also a bit like timeshare except you actually own title (at least for your share) not just "right of use".

Like timeshare, you can exchange (your time) for time in other affiliate resorts around the world.

Has anyone any experience or thoughts on this ownership format!

Thanks

 

[boomtown]

Sure sounds like time share to me. Most of the usual pitfalls of time share would apply.

 

[lizzie]

Sure sounds like time share to me. Most of the usual pitfalls of time share would apply.

ditto - what happens if all twelve of you want it during the school holidays in ski season? (for those who don't know mt hutt is a ski area/resort). i'd rather just pay for when i want to go, and invest my monies elsewhere ... or ... if it's rented out do you all get 1/12th of the rental income?

and what happens if it's rented out sometimes, but other times the fractional owners use it for personal use - how does the tax deductability work if you choose not to use it personally. sounds a bit of a usage and tax nightmare.

 

[boomtown]

And presumably its part of a larger scheme which means you are locked into onsite management that bleed you dry with management fees that suddenly skyrocket the second year...