Fractional ownership of a vacation home

This article talks about fractional ownership, a way to get a vacation property that you can’t afford to buy in full. The funny thing is that it doesn’t sound much cheaper than buying outright in this example:

Peggy, a school psychologist, and Kevin, a registered nurse, bought at a preconstruction price of $209,000, plus a monthly fee of $600 that covers amenities, maintenance, insurance, and taxes — affordable because of the low mortgage on their primary home. For that they can spend eight weeks a year luxuriating in their water-view Jacuzzi, king-size bed, granite-and-stainless kitchen, and large, partially covered patio with gorgeous sunset views. They have daily housekeeping service, a concierge, access to a semi-private 18-hole golf course, spa, fitness center, tennis courts, and pool, and a free water shuttle to town — amenities typical of fractional ownership.

$600 a month plus $200 thousand seems pretty steep to me. Especially since you only get the property for 8 weeks a year. If you say there are 6 blocks of time like that you’ve got the owners paying 1.2 million (200k x6) and $3,600/month ($600 x6). That’s not cheap.

By the way, my monitor broke so I’m not on my regular computer and can’t spellcheck…

Filed Under: Vacation property

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  1. John says:

    209K plus $600/month sounds like a lot for 8 weeks/year in a condo. It seems like it would take a lot of 8 week stays to break even.

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