Deleted
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May 19, 2024 2:11:30 GMT
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Post by Deleted on Oct 12, 2015 0:04:17 GMT
We spent last week in a beach condo in Charleston. It was delightful. Fifth floor penthouse with open balcony facing the ocean. Two bedrooms, two bathrooms, nice kitchen, spacious living dining combo...elevator in the building, easy access to parking and steps from the beach as well as a manicured landscaped lawn with community pool.
It's in a resort community with a good reputation.[ It was perfect for two people and we had a marvelous time.
So out of curiosity I checked the real estate listings for the building and found that a couple of the units in that same building have positions open, meaning a buyer would be one of 8 owners of a particular 1000 sq foot unit. Cost is $69k.
You get one month per year.
What would be the advantages of being an owner?
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Post by gritzi on Oct 12, 2015 0:50:26 GMT
At $69K for one month/year there would be no advantage or incentive for me to purchase! I could plan a lot of trips for that amount of money!
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Post by christine58 on Oct 12, 2015 0:53:32 GMT
That's a lot of $$$ for one month....
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basketdiva
Pearl Clutcher
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Post by basketdiva on Oct 12, 2015 0:58:32 GMT
I see no advantage in a "fractional" ownership. What if you get a bad weather month? Those 4 months of rental would be the best weather months.
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GiantsFan
Prolific Pea
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Jun 27, 2014 14:44:56 GMT
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Post by GiantsFan on Oct 12, 2015 1:18:16 GMT
The issue I see is that you would have to spend the next 30 years vacationing no where but there in order to recoup your costs. Also are there any resort fees, management fees, maintenance fees, HOA fees?
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Post by buddysmom on Oct 12, 2015 1:21:13 GMT
Timeshare--or whatever they are calling it.
Stay away.
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Post by myshelly on Oct 12, 2015 1:26:50 GMT
That sounds horrible.
And horribly overpriced.
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Deleted
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May 19, 2024 2:11:30 GMT
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Post by Deleted on Oct 12, 2015 1:39:03 GMT
Oh no chance we are buying.
It works out to be slightly less to pay the nightly rate for however long we are gonna stay.
We've been going to that area every October for four years now. No problem going to the same place...but they do get risky weather--why would I wanna own that?
DH thinks maybe there are other resort perks?
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Post by smokeynspike on Oct 12, 2015 1:46:22 GMT
That would not make any sort of financial sense to me.
Melissa
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Deleted
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May 19, 2024 2:11:30 GMT
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Post by Deleted on Oct 12, 2015 1:46:42 GMT
I think the only person who makes out on this is the third owner of the timeshare.
Read Clark Howard about it.
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Post by jamielynn on Oct 12, 2015 1:50:41 GMT
That sounds like zero deal to me. You would also own 1/8th of the homeowners insurance in a hurricane ridden area, and 1/8 the maintenece and wear and tear upkeep wouldn't you?
Most places like that also have a monthly fee for things like the lawn service - some in the thousands per month (granted that sounds like it would be split by 8).
The benefits of full ownership is having it whenever you want, being able to consider renting it to others if you choose to for covering some costs, the fact that many properties appreciate over time and are good investments. The one you mention doesn't seem to have any of those advantages.
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Post by moveablefeast on Oct 12, 2015 1:54:40 GMT
I'm in the market for a condo on the Atlantic somewhere between Virginia Beach and Cape May. I have a price in mind and know I can get it. The reason I want my own unit is so that I have my own place where I can go anytime I want all year round and fill it with my stuff and rent it to my friends for cheap so they can enjoy it too.
Sharing it with a bunch of other owners is so not what I'm after and I wouldn't do it for that price. I can spend about one and a half times that and have my own unit all year.
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akathy
What's For Dinner?
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Jun 25, 2014 22:56:55 GMT
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Post by akathy on Oct 12, 2015 2:11:02 GMT
Do you get to pick your month or how is that decided? Doesn't sound like a wise thing to me.
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Post by bc2ca on Oct 12, 2015 2:16:38 GMT
The advantages are the same for any other real estate investment, but gives you the opportunity to get in at a lower cost. Rental income, appreciation and for personal use are the reasons to make real estate investments.
I have only seen fractional ownership used in areas with very high real estate costs and know several people that have made very successful investments in Whistler, BC using fractional ownership deals. Usually the weeks are spread through the year (week 1, week 9, week 17, etc.), not taken all at once and rotate so that the same owner doesn't get all the premium weeks each year. Owners may chose to use none, some or all their weeks and the rest go in a rental pool.
I'd want to know why the 1/8th investment isn't given me 6.5 weeks of access.
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Deleted
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Post by Deleted on Oct 12, 2015 4:40:22 GMT
I'm in the market for a condo on the Atlantic somewhere between Virginia Beach and Cape May. I have a price in mind and know I can get it. The reason I want my own unit is so that I have my own place where I can go anytime I want all year round and fill it with my stuff and rent it to my friends for cheap so they can enjoy it too. Sharing it with a bunch of other owners is so not what I'm after and I wouldn't do it for that price. I can spend about one and a half times that and have my own unit all year. Never rent to friends! |
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Post by trixiecat on Oct 12, 2015 11:05:28 GMT
You need to consider are there going to be condo fees split between all of the owners? What about yearly taxes, insurance and flood insurance on the condo. What happens if the building needs a major repair, like the roof, and there isn't enough money in the condo association to fix it. I don't think I would do it. If you have the $70K to spend then you might want to look at taking a nice vacation every year and investing the rest. Your return on investment sounds like the growth would be very small having to dividing it up amongst all of those other owners.
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Post by moveablefeast on Oct 12, 2015 11:54:36 GMT
I'm in the market for a condo on the Atlantic somewhere between Virginia Beach and Cape May. I have a price in mind and know I can get it. The reason I want my own unit is so that I have my own place where I can go anytime I want all year round and fill it with my stuff and rent it to my friends for cheap so they can enjoy it too. Sharing it with a bunch of other owners is so not what I'm after and I wouldn't do it for that price. I can spend about one and a half times that and have my own unit all year. Never rent to friends! why not? We've been renting from friends for years. It's never been an issue. |
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Deleted
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May 19, 2024 2:11:30 GMT
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Post by Deleted on Oct 12, 2015 14:07:01 GMT
Never rent to friends is part of that set of sage advice:
Don't loan money to family or friends.
What happens if something goes wrong?
I would rather just let the friend come to stay as a guest. But that is me.
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