Welcome to our Fractional Real Estate Blog
Welcome to our Fractional Real Estate Blog. Our purpose is for to provide a place where folks can exchange ideas and opportunities about fractional real estate (FRE). Fractionals are red hot right now and have been for the last couple of years. Although a somewhat emerging market FRE is the fastest growing area of real estate, with sales in 2006 at over $2 billion. Visit http://www.northcourse.com and download the 2007 North American Fractional Interest report for an update on the state of the industry.
Let's start with some frequently asked questions.
Q: What are fractionals and are they the same as private residence clubs (PRC's)?
A: Fractional real estate ownership and private residence clubs (PRC's) are essentially the same thing. The terms are used interchangeably. They allow you to use up to 3 months of home ownership priviledges at a top of the line luxury resort with incredible amenities and service but at a fraction of the cost of full ownership.
Q: Who are fractionals really for?
A: This type of real estate property is ideal if you want the benefits of owning an impressive second home complete with personalized service and located in an exclusive community but cannot justify the investment due to limited use.
Q: What are some of the services I can expect from a fractional or PRC?
A: They offer exclusive amenities, usually including a lavish clubhouse, spa, private heated splash pool, hot tub, gourmet kitchen, tennis courts, golf course, marina, or access to a ski resort. You may have a luxury car at your disposal, chef on call, 24 hour maid service, personal concierge. Additionally a typical fractional or PRC includes: airport pickup and drop off, pre-arrival shopping and stocking, satellite TV, wifi, surround sound, plasma TV, gourmet kitchen appliances, granite, and the list goes on.
Q: How much time do I get with a typical fractional?
A: Most fractionals or PRC's are between 4 and 13 weeks. There are basically two kinds of markets for fractionals. What I'll call driving markets are markets where owners would drive to their second home. Markets like Lake Tahoe and Aspen are primarily driving markets where most of the owners are within 3 hours drive. In driving markets you frequently see 1/4 shares in which the owners would own one week each month on a rotating basis. Week one the first year, week 2 the second year etc. Flying markets are markets where people fly in and spend more consecutive time. In those types of markets you are more apt to see 1/8 - 1/12 shares. People in these markets tend to come and stay for a longer duration of time.
Q: Where are fractionals or PRC's located?
A: They are primarily located in world class resort destinations around the globe. Cabo San Lucas, Puerto Vallarta, Aspen, Lake Tahoe, Costa Rica, etc. Increasingly we are seeing fractionals pop up in major cities such as New York and San Francisco.
Q: How can I learn more?
A: Good question, to find out all that is new in Fractionals and PRC's and to network with the leaders in the industry, don't miss the Ragatz Fractional Symposium next week in San Francisco. http://www.ragatzassociates.com/conference.htm
Let's start with some frequently asked questions.
Q: What are fractionals and are they the same as private residence clubs (PRC's)?
A: Fractional real estate ownership and private residence clubs (PRC's) are essentially the same thing. The terms are used interchangeably. They allow you to use up to 3 months of home ownership priviledges at a top of the line luxury resort with incredible amenities and service but at a fraction of the cost of full ownership.
Q: Who are fractionals really for?
A: This type of real estate property is ideal if you want the benefits of owning an impressive second home complete with personalized service and located in an exclusive community but cannot justify the investment due to limited use.
Q: What are some of the services I can expect from a fractional or PRC?
A: They offer exclusive amenities, usually including a lavish clubhouse, spa, private heated splash pool, hot tub, gourmet kitchen, tennis courts, golf course, marina, or access to a ski resort. You may have a luxury car at your disposal, chef on call, 24 hour maid service, personal concierge. Additionally a typical fractional or PRC includes: airport pickup and drop off, pre-arrival shopping and stocking, satellite TV, wifi, surround sound, plasma TV, gourmet kitchen appliances, granite, and the list goes on.
Q: How much time do I get with a typical fractional?
A: Most fractionals or PRC's are between 4 and 13 weeks. There are basically two kinds of markets for fractionals. What I'll call driving markets are markets where owners would drive to their second home. Markets like Lake Tahoe and Aspen are primarily driving markets where most of the owners are within 3 hours drive. In driving markets you frequently see 1/4 shares in which the owners would own one week each month on a rotating basis. Week one the first year, week 2 the second year etc. Flying markets are markets where people fly in and spend more consecutive time. In those types of markets you are more apt to see 1/8 - 1/12 shares. People in these markets tend to come and stay for a longer duration of time.
Q: Where are fractionals or PRC's located?
A: They are primarily located in world class resort destinations around the globe. Cabo San Lucas, Puerto Vallarta, Aspen, Lake Tahoe, Costa Rica, etc. Increasingly we are seeing fractionals pop up in major cities such as New York and San Francisco.
Q: How can I learn more?
A: Good question, to find out all that is new in Fractionals and PRC's and to network with the leaders in the industry, don't miss the Ragatz Fractional Symposium next week in San Francisco. http://www.ragatzassociates.com/conference.htm
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