Well said, but I don’t believe the 30% equity loss. If you and seven other owners purchased it for $x, it’s likely that you can sell it for $x or more unless that local market changes drasticallyThere is a market for fractional products but it is the ultra wealthy. If one already has a couple of residences and does not want deal with another property it can make sense. The ones that I like (but do not qualify to buy) include storage of your personal items and a concierge who makes sure that when you arrive your photos are on the wall and your favorite wine is in the unit, etc. They are adding value for people who can afford to pay for the level of service and would have paid for it anyway if they owned a unit but did not have 7 others to share the costs with.
They can be at a uniquely well located area (base of a ski run, golf course, etc.) that has a land cost that would make an individual unit very expensive. The combination of local and service can create value for people who do not need to ponder over an initial 30% equity loss, they are buying an experience rather than an investment and using cash from a small portion of their overall net worth.
Statistics: Posted by LFKB — Thu Dec 07, 2023 10:12 pm — Replies 75 — Views 7246