Q:
What is fractional real estate and how does it work?
A:
Fractional real estate refers to the legal sharing of real estate among more
than one owner. The title to the real estate is split so that each owner has
their own freehold title, which they can sell, or mortgage without affecting
the other owners. There is a special lease or other legal arrangement that is
put in place that specifies which time each owner gets to use the real estate.
Plus the basis on how the unit will be managed and the costs shared is
specified as well.
Common
fractions are thirds, quarters, sixths, sevenths, eighths, tenths and
twelfths. Fractional real estate is a way for people to share ownership and
use of a property on a basis that is straightforward and makes sense.
Typically the property comes fully furnished and is managed by a third party
manager so that use and ownership is convenient and hassle free.
This
contrasts with the type of arrangement where families or friends get together
to buy a recreational or resort property. Typically it’s all done on a
friendly basis, with no agreement for mortgaging, selling, repairs and
maintenance or who gets to use the home when. If you’ve been in this kind or
arrangement you know that it seldom works for long. Not everybody cleans up
when they should. There’s always a fight over when people use it, what
furniture there is, whether there should be a mortgage or not. And if one
person wants to sell and everyone else doesn’t the person who wants to sell
may not be able to get out. Fractional real estate solves all of those issues
and makes it easy for family, friends or strangers to share a property
together. It’s a style of ownership that has been working for many years and
is becoming increasingly popular. In British Columbia there have been a lot of
fractional property sales at Whistler/Blackcomb, golf, ski and waterfront
resorts.
Q:
Why would someone want to own fractional real estate?
A:
Fractional real estate is not for everyone however it is becoming increasingly
popular right across North America. Some people just want to own the whole
property, regardless of how much they use it. For others they realize that
they won’t use their property continually and they like the idea of sharing
the property with others so that they get the use they need and want, but at a
fraction of the cost of owning the whole property. Aside from the cost, one of
the other big benefits of owning fractional real estate is that it is taken
care of for you by a third party manager. They make sure that it is perfect
when you arrive to use it and they clean it up when you leave – hassle free.
Q:
Is fractional real estate Time Share?
A:
It is time-share in the sense that you are sharing both the ownership and use
of the property with the time you use it being defined. However, most owners
think of large fractional real estate as being more like traditional whole
ownership than traditional weekly time-share. Remember that time-share is
simply a way of splitting up ownership and or use of a property. You may also
not be aware that the whole time-share industry has changed dramatically over
the last several years. Do you know who some of the big players are? How
about: Four Seasons, Ritz Carlton, Hilton, Marriott, Intrawest, and Hyatt to
name just a few. They are all heavily into both fractional real estate as well
as traditional time-share.
Q:
If I own fractional real estate,
how often can I use it?
A:
Of course the amount of use you would get depends on the fraction you own. For
example, if you owned a twelfth interest you would have usage for about a
month a year. This might be one month all at the same time, or it might be one
week per quarter. For a one third interest you would get approximately four
months usage per year. There are a variety of different ways to split the time
up.
Q:
What fractions is Affordable Luxury
Lifestyle Ltd. planning to offer?
A:
Affordable Lifestyle Inc is offering quarters as ownership at this time.
Q:
If I owned a can I rent it out on my own when I’m not using it?
A:
The intent is that you won’t be able to rent it out on your own. A rental
manager will be responsible for handling rentals on behalf of all of the
owners. That way there is a coordinated rental effort, which should provide
stronger rental results and present a much more coordinated and high end image
than if every owner did their own rentals. Should you want to let your family,
friends or customers use your villa during your time then they could do so on
a non-rental basis.
Q:
Will I be able to trade time in my fraction for time elsewhere?
A:
Affordable Luxury Lifestyle Ltd. is currently investigating an arrangement
with the management company for owners to be invited to a group that provides
an exchange service for members.
Q:
Who is Affordable Luxury lifestyles Ltd?
A:
Affordable Luxury Lifestyles Ltd. is a new subsidiary of 1166784 Alberta Ltd,
a real estate investment company in Alberta. Affordable Luxury Lifestyles will
function as managers for the fractional unit until the completion of all
fractional sales and the investment project closes. Following the sale
of all quarter fractional, Affordable Luxury Lifestyles Ltd can be contracted
by the owners to carry on management of the fractional unit between themselves
and the Cove Lakeside Resort Management (Strata Corp.) and the Hotel
Management Company BHRBC.
Q:
Who will be managing the Resort on behalf of the Cove Lakeside Resort
Management (Strata Corp.)?
A:
Boutique Hotels & Resorts of British Columbia (BHRBC) is a hospitality
management company for luxury hotels, lodges and resorts in British Columbia.
Their mission is to be the number one operator of small luxury hotels, lodges
and resorts in BC. They pride themselves in providing first-class service to
guests, a strong and supportive employee relations environment, and
world-class properties and operating system.