Open-Realty Blog AddOn Fractional Life."We need to reassess our outlook and how we energize consumers in exceptional times," he suggested. Sales for fractionals in North America fell to $860 million in 2009, down from $2.3 billion in 2007, according to Ragatz Associates. Numbers for 2010 will likely slip even further, predicted Sarah Rezak of Rezak Resort Consulting. She doesn't expect shared-ownership sales to grow until 2012. In the past, 80% of fractionals were new developments; today most are conversions from hotel-condos or full-ownership schemes, said Scott Ritter, v.p. of Dahlgreen, Duck and Associates. Developers often see fractionals as a way to attract a more economic consumer without dramatically discounting their properties. The Registry Collection, a luxury exchange program, continues to grow its roster of properties. Twenty-four were added in 2009, giving it a total of more than175 resorts around the world. Exclusive Resorts, the luxury destination club owned by AOL founder Steve Case, is reacting to the market by focusing on current members and allowing news members up to two years to pay their initial fees, senior vice president Adam Wegner said. Read more at RealEstateChannel.com.]]> MortgageBrokersinVirgina. Read the entire article there. "There are four principal possibilities for how to finance your fractional ownership vacation home. The first, simply, is cash — buy your ownership share by paying for it in full. This is the simplest method, and also probably the least likely. Not everybody has $100K – $400K (or perhaps more) in liquid funds. "The second alternative is to use the equity in your home. Take out a home equity line of credit (HELOC) and use the proceeds to purchase your vacation home fractional share. This practice has several benefits. HELOCs are simpler to get than mortgages; and the interest you pay is tax deductible as mortgage interest on your home. Of course, you may not have an adequate amount of equity in your home to totally fund the acquisition of your vacation home. "Option three is to get mortgage funding. There are a number of companies who provide specialized mortgage products to finance the acquisition of fractional ownership vacation homes. NextStar Funding, Vacation Finance, and Sterling (MI) Bank and Trust currently remain providers in the fractional lending market. With the tightening of credit in the wake of the subprime lending industry meltdown, purchasers should expect more scrutiny of their loan applications. Fractional mortgage rates may run 1.25% to 1.5% more than residential mortgage products. "The fourth option for funding your fractional ownership vacation home is financing offered by the developer of your fractional residence. Some fractional vacation residences do make available a self-financed option. Typically there is a down payment in the neighborhood of 20% of the total price, and the loan is amortized over a relatively short term (5 years), often with a balloon payment at the end of that time. "With owner financing, you can come up with the down payment in cash or by tapping the equity in your primary residence. This method has the advantage of simplicity and ease, allowing you to complete the transaction in a short time and with reduced scrutiny and paperwork." Ask our Coldwell Banker Agents about your financing options and which properties are your best choices on our Caribbean Islands. ]]> Fractional Share Ownershipis organized specifically so a visitor can easily catch up with the latest information about fractional ownership online. The website was created to cater to people who don't have a lot of time to search through thousands of sites. The website is free of charge, and its creator feels that it is about time that someone did what the average surfer didn't have time to do, seperate 'truth' from 'fiction.' You'll find definitions, videos of new offerings, and news headlines.]]> preferred attributes of the buyer being water views and proximity to water or mountain activities.” Lake and ocean views combined for an overwhelming majority of the preferred attributes surveyed with mountain views coming second. Martin added that while spa and medical facilities have exhibited recent high growth rate forecasts in recent studies, respondents did not translate that growth into the highest motivation for second home purchases. Green-based second homes also did not show the highest appeal, nor has golf amenities translated into sales. The appeal of being close to the water with an ocean view should help keep our beautiful Caribbean Islands as an attractive 2nd home location in the next few years. Contact a Coldwell Banker agent with any questions you have on investing in our real estate.]]> www.fractionalsummitusa.com.]]> perspectivemagazine.com/gnex for more information.]]> SinglesVacationPackages. ]]> RISMedia.com) ]]> MarketWatch.com, says in actuality it will not be a problem of running out of money, but of running out of lifestyle. Stephen L. Deschenes, senior vice president and general manager for the annuities division of Sun Life Financial’s U.S. operation, explains, "For the most part, people do not completely run out of money when our software says they will. They take action either to spend less or work more or some combination to forestall running out.” Powell points out that the retirement readiness study assumes boomers will retire at age 65. That’s not likely to happen. Most boomers, assuming good health, likely will work past age 65, according to Sun Life Financial’s Unretirement Index. Other research finds a high likelihood that Americans will be forced to spend less. After factoring in healthcare and long-term-care costs, the National Retirement Risk Index, produced by Boston College’s Center for Retirement Research, finds that some 65% of American households are at risk of not having enough money to maintain their living standard in retirement. Powell concludes, "The bottom line from all these studies: saving more and perhaps reducing your standard of living now might be the only way to be reasonably certain you’ll enjoy any standard of living later on. "According to the Employee Benefit Research Institute, to improve the chances of being one of the nine in 10 households that maintains its standard of living in retirement, younger boomers in the lowest income quartiles will have to save, on top of what they already save, an additional 25% of compensation every year, while those in the third income quartile will have to save an additional 15% per year. Those in the highest income quartile catch a break and don’t have to save any more than they already do. "The story is a little better for older boomers though. Those in the lowest income quartile have to save an additional 25% per year, while those in the second income quartile need only save 15% more and those in the third income quartile need save just under 5% more. As with early boomers, late boomers in the highest income quartile catch a break again. They don’t have to up their savings to have a 90% probability of maintaining their standard of living in retirement." Read Powell's complete post on RISMedia.com. How will this affect fractional ownership? The trend has already begun. Boomers will still want a vacation or 2nd home, but will seriously consider owning just what they will use, instead of whole ownership of property that stays vacant much of the year. ]]> SooperArticles.com touts the benefits of Fractional Ownership, which is getting a lot of notice in the press lately. The author states, "Traditionally, if you wanted to use something, you had to buy the item and pay the price whether you used it once or a hundred times. The frequency of usage is irrelevant: the user has to pay the price to own the product. "In the past decade or so, fractional ownership of high-end products has gained momentum. It is an American concept which became popular in the 1990s, when different groups started buying holiday homes jointly in order to justify the cost, as they would not use the properties frequently. "This concept is gaining in popularity throughout Europe, though it is growing at a faster pace in the UK compared to the rest of the continent. "Fractional ownership of products involves buying a stake in an item instead of the entire item itself. This allows you to enjoy the advantages of owning an asset without having to pay for the wasted investment that comes whenever it is not being used by the owner. "In a time of global economic crisis, when most companies are cost-conscious and more risk-averse, fractional ownership is being increasingly considered" as a good investment.]]> Cayman News Service, "A recently published report on the region’s tourism industry [indicates] the Caribbean experienced a mixed start to 2010, with sharp differences between countries in terms of tourist arrivals. The report states however that in general, the picture was positive, with several countries posting increases in tourist arrivals, following a year of overall decline in 2009. "However, experts warn with the 2010 hurricane season forecast to be heavier than 2009 arrival figures in all Caribbean destinations are likely to slow again before picking up in the pre-Christmas high season. "Figures also revealed that travel by Americans to the Caribbean increased in the first quarter of this year. The US Office of Travel and Tourism Industries said air travel to the Caribbean went up two percent in April, the last month of reporting, and five percent over the year to date. "Caribbean figures from Europe were less encouraging, down 43 percent in the first half of the year, which was probably as a result of flight interruption from Iceland’s volcanic ash." We don't have reports on how many visitors actually purchase fractional ownership properties in the Caribbean countries, but the numbers will most likely be affected by visitor arrival figures, both by air and sea. ]]> The Ace Guide recently noticed a new book on the market, Vacation Home Fractional Conversion, offered for $39.95. Here is the book description from Amazon.com: "Vacation Home Fractional Conversion is a fresh approach for a changing real estate market. This groundbreaking book will take the reader from a fractional ownership neophyte to a level where Fractional Ownership Specialist can be aptly applied. Whether you are a real estate professional, a home builder, a vacation home owner or simply dreaming of owning a vacation home... this book will give you a solid understanding of fractional ownership and fractional conversion in laymen s terms. Vacation Home Fractional Conversion deftly covers exactly what the title says: converting vacation homes to fractional ownership homes. It takes the approach that the reader is part of the 99.8% of the population that does not have a firm understanding of fractional ownership and seeks to explain what fractional ownership is, how it has evolved, where it is going and how it can be used effectively in a number of situations to provide flexibility, increase profits and attract buyers."]]> 2010 Investment and Vacation Home Buyers Survey, covering existing- and new-home transactions in the U.S. in 2009, shows vacation home sales rose 7.9% to 553,000 last year from 513,000 in 2008. According to a recent article in RISMedia.com, "Many U.S. buyers are looking outside the US to countries where they get even more for their money. As a result, the second home market has witnessed the participation of new destinations around the world. These hotspots are getting the attention of international buyers who like the prices they find as much as the natural and cultural attractions. Panama, Honduras, Costa Rica, Belize, southern Mexico, Croatia and Turkey are all enjoying growth in the vacation home market, according to Tom Kelly, nationally-syndicated columnist and author of How a Second Home Can Be Your Best Investment: New, Tax-free Methods for Using a Vacation Home for Recreation, Retirement and Investment. "'A number of Second and Third World venues capture our fancy, including Panama,' wrote William P. Barrett in a recent Forbes article. 'Panama has the added advantage of being a relatively short plane ride from the U.S,' Barrett said." Ben Loomis, President of Amble Resorts, also likes Panama. "Americans are looking for a retreat from their busy lives, and Panama offers not only a laid back tropical lifestyle, but affordable real estate as well,” said Loomis. While 2nd home ownership could mean timeshare as well, in today's market, it has become synonymous with Fractional Ownership.]]> Guardian.co.uk/money: "Timeshare salesmen have new tactics and are enticing unwary tourists into investing in resorts, with promises of part-ownership. British consumers about to set off on their summer holidays are being warned to be on their guard against a potential new problem in the timeshare market: the hard-selling of "fractional ownership" of resorts. "The consumer group, UK European Consumer Centre, is concerned that timeshare salesmen – a long-time nightmare for UK holidaymakers abroad, particularly in Spain – have switched tactics and are now trying to entice the unwary into investing in holiday properties and resorts, with the promise that they will own a fraction of its overall value. "Their actions, it says, have been partly prompted by new European legislation that gives those signing up to timeshare schemes a cooling-off period of 14 days. Their actions, it says, have been partly prompted by new European legislation that gives those signing up to timeshare schemes a cooling-off period of 14 days. "Jed Mayatt, the UK ECC's manager, says the hard sell of fractional ownership is an emerging issue for holidaymakers. 'This is becoming a real difficulty in some resorts, with timeshare owners being told that if they buy more weeks, their investment can be converted to fractional ownership. The consumer is persuaded to buy more weeks, completes the paperwork, but gets nothing to show for it in terms of the deeds, etc. They have simply found themselves signed up to further weeks' timeshare ownership.' "Piers Brown, who runs the website and exhibition business FractionalLife.com, says developers in Europe have increasingly turned to fractional sales as a way of shifting unsold developments and properties. 'With the overseas property market badly hit by the economic downturn, both developers and owners have increasingly been looking at fractional ownership. For consumers it makes sense because they no longer face all the costs of running a holiday home, at a time when prices are very uncertain. "'It's imperative to make sure that you are being sold a 'deeded interest' in the property – your lawyers need to be checking this very carefully,' advises Brown. He points to the involvement of a number of big-name companies in the sector – the De Vere group is marketing fractional ownership of a number of luxury resorts in the UK – as evidence that this market is does have trustworthy firms."]]> Midwest Fractional Consultants, LLC is a Minneapolis, MN based firm specializing in Fractional real estate. The company provides consulting services, education and training to buyers and sellers interested in capitalizing on the benefits offered by fractional ownership, including: *The vast increase in affordability for vacation or second homes *Radical expansion of the pool of potential buyers *Ability (unlike timeshares) for any owner to re-sell his fractional share through the MLS *Spreading out the property's maintenance, property tax and upkeep expenses *Retention of tax benefits associated with owning a second home "Fractional ownership is an ideal way to make things like vacation homes suddenly very affordable," says Michael W. Peterson, Principal at Midwest Fractionals, "by dividing ownership in a given property into 4-12 individual shares. Then, a fractional usage schedule is created, which spells out which weeks of the year are deeded to each owner." Peterson explains, "Fractional ownership solves a big problem for 'stuck' sellers and cost-conscious buyers. Fractional ownership enables buyers to get an increase in luxury for a lower price while sellers get an increase in price because there are more buyers." To illustrate the impact of Fractional ownership, Peterson uses a hypothetical $350,000 vacation home. "If an individual buyer wants to acquire it by himself, he's faced with a $70,000 down payment and a monthly mortgage of over $1,600," he says. "But instead, if this hypothetical buyer takes a 20% Fractional ownership, he's looking at a $14,000 down payment and a mortgage of a little over $300 month to get 10 weeks of deeded ownership every year in the same property." Midwest Fractionals provides comprehensive consulting services to developers, investors, banks, and builders, among others. The company's management has over 15 years' experience in real estate, including four years' direct involvement in the fractional industry for hotels, resorts and condominiums. More information is available at Midwest Fractionals' website, www.midwestfractionals.com, or by calling (612) 435-2145. (resource: press release, MarketWire.com)]]> Fractional Life to give consumers the lowdown on how and where to buy into the luxury lifestyle. It features a three-step formula outlining the purchase process and selection of the ideal destination introduced by writer and presenter Chelsey Baker, host of the Fractional Life Expo 2010 taking place from September 13 to 15 at the Broadgate Arena in London. Visit RCI Ventures to see the guide online.]]> RisMedia.com)]]> FractionalLife reports, "Dominican Republic agent Golden Treasures has teamed up with Casa Linda in the resort of Sosua to offer fractional real estate ownership of new-buld villas. "The four-bedroom Villa Ultima models will be configured with the rooms surrounding a swimming pool area and positioned so each villa will face the ocean without covering the neighbors`s line of sight. "The villas are less than ten minutes from Sosua beach, and the same time from Cabarete and the local airport. A bar area near the pool with BBQ grill is also an option, along with air conditioning and furnishings. "Golden Treasure is offering 1/6th shares (three high season weeks and five low-season weeks) for US$69,870. The villas are also available on a whole ownership basis for $394,400. Other share sizes, from 1/12th to ¼ are also available." ]]> www.coldwellbanker.com, which has been in beta form since December 2009. Wholly re-thought and re-designed, the site features optimizations that completely alter and enhance the experience of searching for a home online, the company stated. The site includes a variety of new features, such as: -BlueScape Search - Taking cues from popular music recommendation websites, Coldwell Banker developed BlueScape, a visually-driven real estate search platform to help “dreamers” find just that–the home of their dreams. Instead of limiting search options to zip code or the number of bedrooms, users begin the search by rating abstract images with a “thumbs up” or “thumbs down” from landscape scenery to images of snow mobiles and taxi cabs. At any time, users can submit a query and the BlueScape technology will identify homes that are a good fit using all properties available through ColdwellBanker.com nationwide. -Keyword Search - For those who prefer a more traditional approach to searching for a home, Coldwell Banker has added keyword capabilities to its general real estate search function so that consumers can more easily narrow down the properties they are interested in viewing. -Similar Properties – Coldwell Banker also added a “You May Also Like” feature that offers additional homes of interest, based on a range of characteristics from properties consumers select as “preferred.” -Expansive Use of Video - Taking advantage of the popularity of Coldwell Banker On Location, the brand’s YouTube channel which has had more than 13,000 videos posted by agents and 1.3 million video views in a bit more than one year, the new site integrates video into real estate search. Additional capabilities of the ColdwellBanker.com site include: Technology that immediately identifies the current location of visitors via their IP address, offering up homes for sale in that area; Join Us: a recruiting resource enabling brokers to promote job opportunities and create local career pages; Learn: helpful real estate news and tips for consumers, such as real-time industry articles from the Associated Press and Home File: Place for consumers to store, share and organize a limitless amount of property searches, sales associate and real estate office information and industry articles. Coldwell Banker also included integrated video and social networking capabilities to the new site. Visitors will have access to an array of videos powered by Coldwell Banker On Location, the company’s branded YouTube channel, offering behind-the-scenes looks at towns and neighborhoods, tips and timely news on real estate topics and video listings of homes for sale. (resource: RISMedia.com)]]> MyBankTracker.com)]]> SecondHomes411.com. ]]> Coldwell Banker Isla del Coqui is one of the largest and most successful real estate companies in the Commonwealth of Puerto Rico. Coldwell Banker Isla de Coqui has had a terrific track record for over 20 years and has been the top producing brokerage in their marketplace, with 7 offices and approximately 226 sales associates. Coldwell Banker Island Affiliates Managing Director Jim Reed said, "With the addition of Puerto Rico to our region, Coldwell Banker Island Affiliates now boasts 51 offices and over 500 sales associates throughout the Island countries of the Atlantic & Caribbean. We are excited about the growth and the potential synergies that Coldwell Banker Isla de Coqui brings to our group. We are proud to welcome Puerto Rico to Coldwell Banker Island Affiliates." Coldwell Banker Island Affiliates is the Coldwell Banker Master Franchisor for the Caribbean and Atlantic Island region. For further information on Coldwell Banker Island Affiliates, please contact the Managing Director, Mr. Jim Reed, at (561) 691-8130 or email jireed@mindspring.com. About Coldwell Banker® Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2009, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system number one in real estate for the ninth straight year and number eight among all franchisors. The Coldwell Banker System has approximately 3,200 residential real estate offices and more than 110,000 sales associates in 41 countries and territories around the world. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury properties through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate Corporation is a subsidiary of Realogy Corporation, the world’s largest real estate franchisor. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate Corporation. Each office is independently owned and operated. ]]> GoTimeshare.org.]]> Boston.com explains how a homeowner used fractional ownership to spread the expenses and usage of her home. The owner of a 1781 farmhouse in New Hampshire formed a limited liability company, or LLC, to sell shares in the 3-bedroom/7acre property. The LLC offers owners many of the same protections as a regular corporation, including tax benefits and insulation from lawsuits, but it’s not usually associated with homes. Actually, the LLC is all about fractional ownership, with the members of the company owning an asset. It allows owners to sell their shares without permission from the other members. While obtaining a mortgage under a LLC can be a challenge, the concept has been successful in Colorado in the ski resorts. The US homeowner structured her offering to attract three other owners. Members of the company will pay an annual maintenance fee, and the partners will have access to the home on a rotating schedule. If the LLC becomes accepted as a way to own vacation property, banks and lenders will find a way to make financing the purchase easier for buyers.]]> FractionalLife.com reports that Brazilian fractional real estate is set for a major boom. A new report into the vacation ownership market in Brazil says the country “is poised for rapid and long-term growth for many years”. The study was undertaken by Sarah Rezak, Associate Consultant of Luxury Leisure Properties International. FractionalLife explains, "Brazil is the world’s fifth largest country according to population numbers, and has the world's 10th biggest economy, with a rapidly growing middle class which is keen to embrace vacation ownership – and particularly fractional ownership – in a variety of forms." Some of the key findings of the report were: 1. There are currently over 110 vacation ownership properties and 37 sales offices in Brazil. During 2009, an estimated 14,371 weeks were sold representing an estimated sales volume of BRL 300 million. 2. During a global recession Brazilian vacation ownership continued to build momentum and grow more rapidly. RCI membership grew by 107% during the past five years to 26,900. At the same time, vacation ownership weeks sold experienced 38% year‐over‐year growth in 2007, 52% year‐over‐year growth in 2008, and a record 61% year‐over‐year growth in 2009. Read more at FractionalLife.com.]]> Perspectivemagazine.com. ]]> article in Fractional Life notes that fractional ownership is set to come into its own in the Middle East, and is attracting interest from the wealthy visitors. They state, "Currently, about 62 per cent of Middle Eastern shared ownership resorts are in Egypt, but destinations such as Dubai, Abu Dhabi and North Africa are all set to see significant expansion." Fractional Life cites a study by North Course Consultancy, which concludes, ""Over the next five years timeshare growth worldwide is expected to increase by 50 per cent but will increase more in the Gulf area. Although the timeshare industry in the Middle East and Africa region is in its infancy stage, it has phenomenal potential, particularly with its population of over 300 million and through the development of current mega projects." Fractional Life will be holding its first shared ownership conference in Abu Dhabi in November, 2010. ]]> Canequity.com)]]> www.nhc.noaa.gov Information provided courtesy of Coldwell Banker Real Estate Turks & Caicos]]> A luxury residence club to consider for fractional ownership in the Caribbean is the Casa de Campo Resort, Los Altos, Dominican Republic. This is a 116 unit elegant complex consisting of 1, 2 and 3 bedroom Caribbean-style villas and lofts. Designed by famed architect Francisco Feaugas and the renowned Miami firm BAP Development, it is a private collection of primary or secondary residences for those who demand ultra luxury ownership without the complications of maintenance and servicing. These limited edition villas are set amidst the Dominican Republic’s best golfing, spa and resort amenities, and feature lush gardens and optional private pools. All Los Altos’ villas have stunning views of the renowned Dye Fore golf course. Casa de Campo is a vacationer's paradise and the perfect place for a home away from home. Comprising 7000 acres, the resort has won Travel and Leisure Magazine’s “#1 Family Friendly Resort in the Caribbean” and “#1 Golf Course in the Caribbean” awards. Los Altos is located adjacent to Altos de Chavon, a picturesque replica 16th century Italian village, with a collection of shops, restaurants and cultural attractions, including a 5,000 seat open-air theater. In addition to world class golfing available at Casa De Campo, virtually any activity can be found here, from hiking, sailing and outdoor excursions to equestrian activities and tennis. When it’s time to relax and refuel there are many restaurants to enjoy as well as a spa, massage facilities and poolside lounges. Talk to one of our Coldwell Banker agents in the Dominican Republic about fractional ownership opportunities in Casa de Campo. (photo courtesy of CasadeCampo.com)]]> FractionalLife.com has added a new category to its web site, Fractional Lodges, to reflect the growth in cabins, and recreational fractional opportunities. A fractional ownership lodge or cabin represents one of the most cost-effective routes to vacation home ownership. Typically the lodges are spacious, fully furnished and equipped single-story wooden structures with two or three bedrooms and attached outdoor spaces. In most cases the lodges are built on resorts in traditional and popular vacation locations, and are especially suitable for buyers looking for somewhere to spend their family holidays. In the US, fractional lodges are often found in mountain and lakeside resorts, which will usually have a range of family activities and amenities. Piers Brown, Fractional Life founder, said: “We’re delighted to offer our readers more choice with a clearly defined opportunity to explore ways of experiencing true fractional holiday home ownership." Visit Fractional Life after May 28 to look at their new section.]]> fractionallife.com. If you can't get to the Expo, the publication will be distributed in City AM on June 28. CityAM.com is the online presence of City A.M., London's first free daily business newspaper. Both platforms cover financial, business news as well as sport and contemporary lifestyle. The press release didn't say if the Fractional Ownership supplement will also be available in the CityAM web format.]]> Vacation Nation, aimed at helping consumers understand the different aspects of the shared ownership/use vacation real estate market. Fractional Summit USA 2010 promises to be the ideal place to get up-to date with the current fractional real estate market. With its global appeal, the conference is held over two days and packed with renowned speakers, group panels and presentations from worldwide experts. The event offers the perfect platform to network, learn and exchange information and ideas. Tracey Carter, Conference and Event Manager said, “Despite current market conditions, leading American fractional industry professionals have requested us to launch a conference in the United States with a similar format to our European event. We’re looking forward to their support and welcoming speakers and delegates from around the world.” “Fractional real estate now operates in a completely new market paradigm where many of the ‘old rules’ no longer apply. Our inaugural US conference promises to be an event which our delegates, speakers and sponsors can be truly proud of," said Piers Brown, Founder of Fractional Life. (resource: FractionalLife.com)]]> fractionallife.com. Fractional living allows people to enjoy those luxuries to a standard that would normally be well beyond their reach." Whether for race horses, or handbags, villas or cars, fractional living has the potential to give you the million-dollar lifestyle you've always wanted - a lifestyle that is quite clearly far greater than the sum of its parts. For more ideaas, read DailyMail.co.uk. ]]> Portrait of American Travelers, shows that 1 in 4 leisure travelers with an annual household income over $50,000 took at least one overnight trip-vacation in their local areas, within a 50-mile drive radius of their homes). This trip was an alternative to vacationing in a destination requiring traveling a longer distance, during the previous 12 months. There is an age factor to this trend, but not income. 37% of Millennials (18-30) took a staycation, 31% of GenXers (31-44), 21% of Boomers (45-63), and 15% of Matures (64+). For incomes $50,000-$124,000 26% did, but forincomes over $125,000 also 26% took this type of vacation. RealEstateChannel reports, "On an equally surprising note, 'staycations' are more likely to have been taken by unrelated adults living together (versus those who are married), and adults with children in residence at home: "37% of unrelated adults living together took at least one staycation last year, versus 25% of those who are married; 32% of adults who have children at home took at least one staycation last year, versus only 21% of those with no children at home. "These data suggest the phenomenon is more than a fanciful term that captured the imagination of journalists eager to report on yet another manifestation of the impact of the poor economy on the travel industry. On the contrary, 'staycations' appear to be real and represent a discernible, short-term shift in consumers' leisure travel behavior, if only for last year. "It is important to understand, however, that the typical leisure traveler takes an average of four leisure trips annually, so one should not come to the erroneous conclusion that staycations' have necessarily replaced all well-established patterns of leisure travel. But the implication for travel service marketers is clear: local and regional origin markets retain considerable potential for generating incremental business in the year ahead, and this potential is likely to remain robust through the duration of 2010 and well into 2011." ]]> RealEstateChannel.com, "Fractional sales in North America dropped 44 percent in 2009, according to industry analyst Dick Ragatz. While 18 projects were launched in 2009, 35 closed due to lack of financing or sales, he reports. "The hardest hit sector was non-equity 'destination clubs,' with only seven remaining in operation, compared to 21 in 2007. 'There is a basic flaw with this model in times of real estate price depreciation,' Ragatz said during his annual state-of-the-industry conference. "An increase in average maintenance fees, which rose on average 9 to 20 percent, may have played a role in discouraging buyers, Ragatz suggested. "A dramatic increase in low-priced foreclosure property may have also diminished the value proposition for fractionals, an analysis in OPP magazine suggests. Fractional prices decreased less than 10 percent, while prices for whole ownership property dropped 25 to 35 percent in many resort markets, in large part due to distressed property. "'Distressed sales were absolutely a factor, especially in the moderately priced fractional market,' Ragatz told OPP. "Many developers turned to fractionals last year, hoping to replace reluctant buyers of whole units to pay for partial ownership. But faced with competition from low-priced units flooding the market, developers like Taylor Wimpey in Spain have since backed away from the fractional model."]]> fractionalownership.co.za has produced a series of question and answer videos featuring a panel of leaders from all sectors of the fractional and vacation ownership industry, and posted them on the company website. As reported by SAPropertyNews, "The first series of videos features a panel which includes Alex Bosch, executive director of the Vacation Ownership Association of Southern Africa (VOASA); Deon Viljoen, director of operations of Southern Sun Lifestyle Resorts; David Clifton and Darren Ettridge of Interval International (which is based in the UK but is moving into Africa with its global exchange programme); and Henry Greyling, chief executive of Seeff Fractional Ownership. The sessions are presented as debates, and viewers are flies on the wall. Each clip runs for under 11 minutes. "This series addresses the broad question of ‘What is shared vacation ownership?’, and includes topics such as ‘How has the shared vacation ownership market evolved over the past five years? Do we have a new generation of consumers that are dictating future products based on their usage requirements?’, ‘What makes conventional fractional ownership and private residence clubs different from conventional timeshare products?’ and ‘What is happening in the South African fractional ownership resales market, and what channels and methods can fractional owners use to resell their fractions privately?’" View the videos at http://www.fractionalownership.co.za/videos/listings. While the videos are designed for South African buyers, they address concepts of fractional ownership and private residence clubs applicable worldwide. ]]> HotelsMag recently ran a Market Profile of the Affluent Shared Ownership Buyer. Developed from the Ypartnership 2008 Portrait of Affluent TravelersSM, the study is a comprehensive analysis of high-end lifestyles, social values, and travel trends of the top eight percent of American households defined by current income. Based on data accumulated in August, 2008 - when real estate markets worldwide were in a slump, to say the least - the study was completed in Sept, 2009. Here are some nuggets of information. 1. "Affluent leisure travelers interested in resort real estate strongly believe in the value of their vacations, as nearly nine in ten report that vacationing is important to their well-being and to the health of their personal relationships." 2. "Nearly three quarters of affluent leisure travelers interested in purchasing some form of resort real estate confirm their interest in vacationing in condominium-style accommodations during the next two years." 3. "They are nearly twice as likely to be familiar with the concepts of vacation ownership, fractional ownership, and private residence clubs. Additionally, they see themselves as value-driven consumers who place a premium on quality and reliability." 4. "Affluent travelers assign high levels of perceived value to the availability of various attributes and activities when making their resort vacation purchase decisions. These attributes generally take the form of physical features, as well as service offerings to complement their stay." How do the findings affect the shared ownership industry? "Today’s fractional interest product and private residence clubs are well positioned to appeal to the tastes and desires of this influential group of consumers,” said Peter C. Yesawich, chairman and chief executive officer of Ypartnership. He continues, "'It’s important to note there are approximately 1.3 million affluent leisure travelers in the U.S. who are interested in acquiring resort real estate during the next two years. They’re looking for vacation experiences that fit their changing needs and that also fulfill their penchant for status and the personal satisfaction of real estate ownership. Since shared ownership offers consumers the ability to purchase only the amount of time they intend to use, this augers well for the future of this business.'” As further reported by HotelsMag, "Other Notable Findings • Affluent leisure travelers interested in resort real estate overwhelmingly tend to be married (93%) and White (80%) with an annual household income of $250,000 or more (52%) and a reported net worth of $1 million or more (72%). • More than four in ten are Boomers (44 – 62 years of age) (42%) and approximately four in ten are Generation Xers (30 – 43 years of age) (37%). • Affluent leisure travelers interested in acquiring resort real estate have taken an average of more than seven (7.4) leisure trips during the past 12 months. Of those who took at least one trip in this category, approximately five (5.3) were to domestic destinations, whereas two in seven (3.5) were to international locales." The Fractional Ownership industry, at least with this segment of buyers, seems to have a good future. ]]> Elan Collection, a group of private residence clubs (PRCs). While we aren't recommending their services or properties, the post gives a compelling portrait of the values of Fractional Ownership. "Once upon a time, there was a successful real estate investor named Charles who would have balked at the idea of sharing his vacation house with 12 other millionaires. "Fast forward to 2010. The conspicuous consumption of the mid 2000s has turned into conscientious consumption; and whole ownership for the affluent has taken a backseat to experience. Charles doesn’t want to tie up all of his financial assets in a multi-million dollar summer vacation house that his family is realistically only going to use 4-6 weeks out of the year. Ultimately, he wants more time with his family and enjoy the memorable experiences that are made possible by the fruits of his labor. He still wants the most desirable vacation home money can buy without the headaches and stresses of absentee home-ownership. Yet, he wants to be smart with his money, only buying what he will use. "Charles may be a fictional character, but his story illustrates the mindset of many affluent travelers. They still value their leisure time—just as much as (if not more than) their money, according to a 2009 report called 'The Affluent Shared Ownership Buyer: A Market Profile.' "Shared ownership, or fractional ownership, in private residence clubs such as The Èlan Collection, remains a 'smart' vacation option. If Charles were to buy a $1.25 million share in an oceanfront property in La Jolla, for example, he would get four weeks guaranteed use, amenities and services ranging from a luxury vehicle to private Èlan concierge, the option to exchange his use rights for flex time at another Èlan property, and the peace of mind of knowing that The Élan Collection takes care of all of the details associated with typical home ownership (and is dedicated creating memorable vacations). "Do you agree that time and experience are just as precious as gold in today’s vacation home market?" If you relate to Charles, consider Fractional Ownership. ]]> TheRealEstate-World.com.]]> Turks & Caicos Islands. Twelve Palms is located on Ocean Point on Providenciales. The home sleeps eight, perfect for groups or family getaways. Each of Twelve Palms’ four bedrooms has its own full-sized bathroom. Additionally, the home has a large infinity pool and Jacuzzi overlooking the ocean, private tennis courts across the street, an outdoor tiki hut and ocean swim deck. Villa Lynda is located in the private Chalk Sound area on Providenciales, and features four master bedrooms, each with its own bathroom and incredible view. A large infinity pool and Jacuzzi overlook the ocean. Villa Lynda also has its own private beach as well as a separate ocean swim deck. Villa Osprey sleeps six in its three en-suite bedrooms, each of which is fully equipped with a television and your own personal terrace overlooking the ocean infinity pool or Jacuzzi. Villa Osprey also has its own oceanfront dock, built right into the coastal rock. Tune in to find out which home and ownership the couple selects. To view details about the segment please visit: http://www.hgtv.com/house-hunters-international/arizona-couple-seek-a-vacation-home-on-the-turks-and-caicos-islands/index.html. ]]> CityA.M.com)]]> HomeTownFocus, makes the point that getting your kids to go with you on vacation, even for a short distance, can be a challenge after they reach a certain age. He is the real estate guy at the Lodge at Giants Ridge. Read how he sells fractional ownership. "If parents with young families thought they had to spend thousands of dollars to stay in an expensive resort, or if Grandma and Grandpa thought they had to pay for a luxury vacation every time the kids came to visit, they might just choose not to be visited at all! But there is a better option called fractional real estate. Fractional real estate ownership of a condominium is often more affordable than renting a small hotel room. It enables families (or individuals, or businesses) to get 100% of the benefits of real estate ownership with only 20% of the cost. "One property is divided into 5 one-fifth shares [this varies by the property] so the owner of each share gets to use the property for 10 weeks per year. All maintenance and upkeep is handled by the on-site management company. "Since most families won’t use all 10 of their weeks every year, you can make your condo available to the front desk. They can rent the unused weeks to skiers, golfers, wedding parties and corporate events. As deeded property, it is eligible for mortgage financing. Since it can be categorized as second home ownership, it gets preferred tax treatment and second-home deductions from the IRS. Consult your financial advisor or accountant for details. "The traditional sources of down payment money for vacation properties are cash, savings, home equity and using proceeds from the sale of stocks or bonds. Many people get financial help from a parent or grandparent." Peterson concludes, "Maybe if I had the allure of the natural beauty in my backyard I would go back to my hometown more often. Maybe if I had the endless recreational variety of Giants Ridge I would decide to come back. Maybe if I had all the history and charm of the Iron Range I never would have left. And perhaps if I had a nudge from a family member that made a Lodge condo affordable or free, I would be here all the time." His words are applicable to any fractional resort property, and one of the many reasons - family time - the idea is becoming more and more popular. ]]> RealEstateChannel discussed the future of golf courses as part of new developments for 2nd homes worldwide. Kevin Fleming, Nicaragua developer, said "his studies show 15 to 20 percent of potential clients are interested in the game, compared to 50 percent who love the idea of a spa. 'There's more interest in eco-adventure [than golf],' Fleming says. 'I don't think you can go to market as a complete brand if golf is the only amenity.' While not a new debate, this is an increasingly common discussion these days, as developers wonder if turning over a huge chunk of a property to an expensive course is really the best way to sell homes." Ashley Bretecher, director of marketing for a resort in Costa Rica, feels a marina will sell more homes, and golf courses don't bring new real estate clients. The author continues, "While few doubt that golf will remain popular, there is a growing sense that its role will change in future developments. In casual discussions, developers often say they are finding it difficult to justify the expenses surrounding a course, especially when other amenities are clearly growing in popularity. "Courses also present legal complexities these days, with some homeowners associations balking at the cost of maintaining a course many of them never use." Instead, the Nicaragua resort is incorporating amentities such as an equestrian center and medical facilities. "'Golf in the future will be an amenity,' Fleming predicts. 'Designs will be simpler and costs driven down.'" ]]> 21 Fractional Real Estate Professionals of 2010. Each was asked about how this investment sector will do the coming year. Here are responses from the top 5. 1. Claude Attala, Northcourse "The most successful fractional schemes will be the ones in locations beyond the reach of traditional homebuilders, which make the most of their surroundings in terms of natural beauty, sports and leisure facilities, and urban centres." 2. Gregg Anderson, the Registry Collection "More potential buyers than ever will evaluate deals based on usage versus investment which will put more emphasis on developers delivering a comprehensive amenity package and choosing the right operator who can deliver the exemplary service this affluent traveling demographic demands." 3. Philip Bacon, HVS "The fractional property business will continue to offer opportunities to both developers and operators who are looking to take advantage of an increasing awareness on the part of the customer of the need to achieve true value for money for high ticket items." 4. Robin Barrasford, Barrasford & Bird Worlwide "Fractional property has to offer value or they are going to give all of us a bad name, and it will be like the dark days of timeshare all over again. One area I can see really taking off is the up-selling of fractions to existing timeshare owners – that's a very good idea." 5. Piers Brown, Fractional Life "Traditional timeshare operators will broaden their purchasing options with fractional ownership products...As the whole ownership market continues to struggle,developers will increasingly complement their resort sales with fractional ownership products." Read about the others and the complete profiles at Fractional Life. ]]> MoveChannel, Fractional Ownership is forecast to be very successful in Britain. In fractional ownership, you purchase a resaleable asset, a share in the total physical property, with a not unreasonable hope to make a profit. They quote Robin Barrasford, Managing Director of Barrasford and Bird Worldwide: "'When you purchase a holiday home in the UK, you not only become accountable for the purchase price of the property, but you also take on the ongoing financial commitment of funding all insurance, repairs, maintenance and service to your second home for the remainder of ownership. A high price to pay you might think, for what is likely to amount to just a couple of weeks' usage of your property each year. "'Finally, it seems, a realistic opportunity to purchase UK-based holiday homes has arisen at a reasonable cost and without the hassle. Fractional ownership may well be the perfect solution for the thousands of Britons at home and abroad who have been searching for their ideal holiday property here in the UK, without any of the hassle of whole home ownership and without damaging the world's environment.'" Fractional Ownership developments are underway throughout the United States and Canada. With good press like this, the Brits will probably take a good look at this type of investment.]]> My Taxes, a tax expert touches on using a 1031 Exchange for Fractional Ownership investments. "Tenants in common, also known as co-tenancy, is an increasingly popular method to purchase properties. This form of ownership assigns fractional ownership by the amount of money invested. The ownership of the property goes to heirs at the point of death, unlike joint owners with the rights of survivorship. The collective power of the group’s dollar makes the 1031 exchange easier and allows ownership in commercial and institutional property otherwise outside the financial abilities of the individual. Property managers normally handle the daily problems. If one tenant in common wants to sell, the other tenants in common have the option to vote to sell, not sell or buy the individuals shares. The same rules apply for tenants in common as apply to the individual." If you aren't familiar with using 1031 Exchange as a tax-deferral strategy, the author explans, "The term 1031 exchange comes from the section number of the U.S. Internal Revenue Code and identifies special rules for like-kind exchanges in real estate. The code states you can defer the tax when you exchange a property used exclusively for business or as an investment property, for another property that is of the same type. Remember, the tax postpones and at the sale of the replacement property, adds to any taxable gain on that property. The government recognizes that when new property replaces a property sold and the seller reinvests the money, they never really take an economic gain. "There are many rules to follow to maintain the tax-deferred status in a 1031 exchange. The seller has to invest all monies into the next property or taxation occurs on the money received. The seller has to have equal or greater debt on the new property. If the new property has less debt, then the seller needs to produce extra cash from an outside sources and cover the difference in debt. The debt reduction is constructive receipt as though it is cash and there is tax on the difference. "The identification period occurs within 45 days after the close of the original property and requires the identification of a replacement property. The replacement property needs to close within the acquisition period, which is 180 days after escrow closed on the relinquishing property. "If the seller does not put all the money into the next property, that money receives taxation as boot and if the sale followed all other rules, the property still qualifies for partial tax deferral. "A reverse exchange also exists. This occurs when a taxpayer finds the perfect property before he sells the original property. "Properties do not have to cost the same amount or be in the same neighborhood to qualify as a like-kind exchange. Like-kind properties have the same nature or usage. Rental properties need replacement with rental properties. There are many pitfalls for the average person to stumble into on a 1031 exchange, which is why a qualified intermediary is important for a 1031 transaction. The intermediary holds the funds in trust until the replacement property closing." A 1031 Exchange is a good way for property owners - fractional or whole - to defer taxation and keep the profit working until he/she is ready to pay the accrued taxes. Check with your tax advisor to see if this strategy would be good for your investment portfolio. ]]> As reported by Fractional Life, "The Palm Bay Beach Club on the Bahamian island of Great Exuma has released a selection of fractional ownership villas for sale. Prices range from US$24,900 to $99,000 for a 1/12 (four week) share, and the developer is offering consumer finance. "Describing the development as 'the most affordable luxury lifestyle investment anywhere in The Bahamas today,' the developer says: 'Fractional villa ownership represents an exciting opportunity to purchase a vacation home in one of the most scenic, quiet, and relaxing parts of the Bahamas. Buyers and their families will appreciate the serenity of nature surrounding them at every turn, whilst enjoying comfort, entertainment and world class amenities.' The fully furnished villas have ocean views, balconies and a shared swimming pool." Contact any Coldwell Banker agent in our Bahamas office for information on this opportunity.]]> Perspective Forums has been created to encourage communication between developers, marketers and suppliers of the timeshare and fractional ownership industry on a global scale providing opportunities for forging new alliances and collaborations, discuss pertinent issues and learn what’s currently working best in the sales and marketing arena. With features that include creating or joining and participating in groups and forums, extended profiles, adding friends, avatar and gravatar enabled, email notifications, rss feeds for favourite topics, private messaging, status updates, member directories and blogs included in the first release alone, the site is expected to become a hit with industry professionals wanting to network with others in their marketplace. “We created this networking platform to encourage our extensive magazine readership to interact with each other and discuss useful topics relating to our industry” said Paul Mattimoe, CEO, Perspective International. “With all content site-wide exclusively related to the shared ownership industry, we expect it to become popular, and as it grows will add even more functionality to remain at the forefront of available technology.” (resource: PR-Inside.com)]]> Fractional Ownership Units are available in Anabui, Aruba’s first Private Residence Club offering spacious, 3 bedroom with 3 1/2 bathroom residences. They start at $ 149,900, including furnishings in the 5 star range. Benefits of ownership include one-tenth deeded interests provided advantages of 2nd home ownership with 5-star services and amenities. This private residence club offers a view of the Caribbean sea as well as the 10th hole of the Tierra del Sol Golf Course. The relaxing environment of Anabui will make you feel at ease, including swimming pools and a spa. Here you will be able to provide your life with some extra luxury. Asking $149,900. Visit our Coldwell Banker Listing page in Aruba for details.]]> Perspective Magazine recently published an excellent post on "Looking at Making Your Property Fractional - the First Steps." Lisa Migani, author of the article and director of business development for FNTC in Europe, Asia and the Middle East, suggests starting with the legal structure and documentation, before you look for reservations and sales. Actually, take a step back from there, before you pay the attorneys. Your due diligence should include research on your market. Are the right numbers of people going to this area? Is it really something that’s desirable to the fractional market? How much is it going to cost? If high-end, will it move in this economic climate? Migani continues, "We know that there are huge opportunities with distressed real estate properties in desirable holiday locations...However, you can’t say that any beachfront real estate will sell as fractional." She explores a European solution based on the buying habits of the European consumer, but cautions that Americans have a different idea of fractionals. She states, "Within the fractional model there is a huge opportunity to create an innovative product to sell to a virgin market. You could be the first to launch a highly successful, high-volume fractional resort if you do the research and have the right product." Back to the legal structure, which is all-important. The consumer must believe in the product, the title, and the resale value. The right legal structure ensures that everybody is protected – the consumer and the developer – and everything is going to work as it is presented on the day of sale. The structure is fundamental to the success of the project. The Trustee ownership model is ideal for fractional ownership. Migani explains, "With the short-term usage plan and sale of the asset at a pre-determined time, the trustee in effect sells the property on behalf of the fractional owners and removes the danger that one owner could obstruct the sale. The trustee also disburses the sales proceeds to the fractional owners once the asset has been sold. "Consider the following important questions regarding a potential legal structure: • Does it give you long term flexibility and control? • Is it simple to administer allowing you to focus on sales and marketing? • Will your sales closure costs be minimized? • Are you able to provide consumer confidence without hindering the growth of your business?" Fractional Ownership is a valuable form of asset structure to offer, whether for a single family home or large resort development. But do your groundwork, and think the project through to completion and long-term sales before you get too far. ]]> Housing in America: The Next Decade, a new research paper authored by John K. McIlwain, senior resident fellow, Urban Land Institute/J. Ronald Terwilliger Chair for Housing, emerging trends in demographics and consumer behavior will result in a residential market very different from that before the recession. The effects of widespread foreclosures and their drain on market values, and the loss and need to re-establish a private market residential finance system, will be felt more in the U.S. But shifts in housing demand triggered by baby boomers, their children, and by immigrant households will be felt offshore. Currently, there is an unprecedented number of foreclosures and short sales on the market, and more homeowers are choosing to walk away from the mortgage rather than sustain a large financial loss through a short sale. This suggests a fundamental change from the long-held notion of homeownership as the ultimate American Dream. McIlwain explains that this disillusionment over homeownership - as a way to build wealth - could persist for decades to come, as those entering the housing market will be more apt to rent longer, and to place more emphasis on buying for shelter rather than investment purposes. The shift away from using real estate as a means to build an investment portfolio could be felt throughout the region. The demographic waves identified by McIlwain include: 1. Aging Baby Boomers (55-64) will continue to work, many will stay in their homes until values recover, and those who can move or invest in a 2nd home will opt for mixed-age environments which offer active lifestyles. This group has lost a very large part of its wealth and ability to invest. 2. Younger Baby Boomers (46-54) also will not be able to sell their homes at what appreciation they intended, and may not move as quickly as in past years. Their ability to purchase 2nd homes will be greatly diminished because of flat incomes and less home equity. They also will be drawn to more compact communities that emphasize connectivity. 3. Generation Y, actually larger in number than the baby boomers, has grown up with computer technology. They value community, places - either virtual or actual - where they gather and share information. They are less interested in homeownership than previous generations, have smaller incomes, and want walkable, connected communities which are Green. 4. Immigrants (in the US), which already number over 40 million, will have a huge impact, especially when extended families are included - children, grandparents, grandchildren, etc. The tendency of immigrants to cluster, and to live in multi-generational households, suggests that they would prefer larger homes if they could afford them and in neighborhoods with a strong sense of community. Any investment in 2nd homes would mirror the "cluster" concept. All of these 4 groups share the desire to live and work in more pedestrian-friendly, transit-oriented, mixed-use environments. McIlwain concludes, “The suburban century is over. This is the urban century.” Many will still be able to afford vacation home whole ownership, or fractional ownership shares in vacation destinations, and investments in a property for future retirement. But the numbers of those buyers who will be from the US - according to this study - will dramatically decrease, and their interests in the types of properties considered, with what is left of their disposable income, will - or has already - definitely change. Read more on McIlwain's report at RisMedia, and visit the Urban Land Institute to learn about the global real estate community. ]]> ITWeb, in discussing ways for companies to cut IT costs, suggests managers "take a more integrated view of how IT is used throughout the business. Targeted IT investments, such as the use of vendors, can make operations more efficient and increase revenue, delivering returns larger than simple cost-cutting measures typically do." They continue, "A downturn calls for tighter management, a review of processes, the establishment of better controls. All of the components of IT, such as hardware, licensing, infrastructure and applications need to be scrutinised for any excess, and all of them an as is and a to be component attached in terms of costs. "However, tighter control of IT costs does not have to mean less scope for securing new projects. Working with vendors is an effective way of reducing expenditure. Typically, IT projects require certain people for specific tasks and for limited periods, and the remainder of the time these people are redundant. "The right vendor can provide fractional ownership of highly qualified specialists for the specific period needed, reducing the need to increase fixed costs through employing extra people in order to cope with new projects. "A vendor can make more people available at short notice, providing extra capacity when required. Using vendors to assist with peaks and troughs during projects is not only prudent during downturns, but also in periods of transition, providing flexibility during fluctuations in project demand, and agility to be able to ramp up rapidly at the first signs of economic upswing." Fractional Ownership of human resources is an interesting concept. While we generally think of the term in relation to "hard" assets, a skill or resource could also be fractionalized. Think about it. ]]> Fractional Life is by far the most informative and helpful web site available on fractional ownership opportunities worldwide. They are currently running a Readers Choice Award contest to pick the best development. Finalists are: Appassionata, Casa Giacomo, Le Marche, Italy Oceanico Prestige Residence Club yooPhuket, the Absolute World Group 47 Park Street, London Vote and read more about each resort through this link. Appassionata, Casa Giacomo, Le Marche Italy The three properties are undergoing a combination of a sympathetic renovation and new build. They have purposefully developed a very flexible fractional ownership model so that owners can create the fraction that suits them best. Oceanico Prestige Residence Club Not just fractional ownership but a two part concept - deeded ownership and at the same time, membership of a residence club. Owners share a portfolio of fully furnished, beautiful residences in desirable locations around the world. yooPhuket, the Absolute World Group A spectacular collection of 256 apartments and penthouses, available both whole and fractional ownership, under Absolute’s well established and highly successful quartershare ownership initiative. Units are sold as Freehold and come with a 5 year warranty. fractional owners do not need to open a Thai bank account, as they receive shares purchased from an overseas company. 47 Park Street, London A private and exclusive residence club located in the heart of prestigeous Mayfair. property consists of 49 one-and two-bedroom residences only, which are sold in 13 fractions each. Members can purchase one or multiple fractions and each fraction allows them to use their residence for a minimum of 21 nights per year. We've given just a bare glimpse into what each ownership opportunity offers. Read more about them at Fractional Life. ]]> MyIntroducer, Richard Edgar, spokesperson for Turkey and the Caribbean at NAEA International said, “'The last year has seen overseas sales fall dramatically as a result of the global credit crunch. It has, however, seen the cream rise to the top as weak developers, projects and agents have gone to the wall whilst those strong enough to survive the recession have introduced better deals and incentives along with stricter due diligence to stimulate investment and sales. “'Rent guarantees and fractional ownership deals are springing up in an attempt to stimulate sales, but buyers should be extra cautious and get their lawyer to check through the contract before signing on the dotted line to ensure its authenticity.'” Representatives from most countries feel the 1st quarter will be the best time to buy, as prices will experience a modest increase during the rest of the year.]]> Fractional Life, "There is renewed optimism in the local real estate market as a result of a recent home price forecast by Moody’s Economy.com. Researchers predict Santa Fe’s real estate market will grow at an annual rate of 3.6 per cent over the next decade, placing the city among the top 10 housing markets in the U.S. during this period." Other PRCs are trying this model as well around the world. This is the year for flexibility and innovation, if you want to move your real estate products. ]]> Fractional Life predicts that more traditional timeshare companies will offer fractional ownership products this coming year. They also see a trend with whole ownership operators incorporating fractional ownership into their business models in 2010. The worldwide economic downtown is forcing both types of real estate businesses to look at alternative sales offerings. Fractional Life sees a difficult year for whole ownership developers in Europe, UAE, and the US. Timeshare operators have already been hit with decreased sales the last couple of years. In addition, estate agencies will see fractional ownership as a way to increase business this year. Fine & Country, based in Park Lane, Mayfair, has announced it will launch a fractional sales unit over its 350 licensed affiliates in the UK, Europe, Middle East, and Africa.]]> WorldClass-uae to find out about the ebook investor guide by Tolan.]]> Fractional Life has released its diagnosis of the fractional ownership trends for 2010: 1. Traditional timeshare operators broaden their purchasing options with fractional ownership products 2. Escapism - kin to splurging 3. Increased fractional cross category activity 4. Whole ownership operators complement their resort sales with fractional ownership products 5. Boutique fractionals 6. Bespoke fractional real estate agencies 7. Green fractionals 8. Fractional trade networking in the virtual world 9. Real Time Reviews, Tracking and Alerting virtually 10. ‘Collaborative consumption’ - the next consumer trend - a sharing economic model Read a full description of these trends at Fractional Life's press release.]]> Fractional Summit USA, announced for August 31-Sept. 1, in Miami, will be held to stimulate the sharing of knowledge and fresh new ideas throughout the United States Fractional Ownership industry. Tracey Carter, Conference and Event Manager, said “Despite current market conditions, leading American fractional industry professionals have requested us to launch a conference in the United States with a similar format to our European event www.fractionalsummit.com , and we’re looking forward to their support and welcoming speakers and delegates from around the world.” “Fractional real estate now operates in a completely new market paradigm where many of the ‘old rules’ no longer apply. Our inaugural US conference promises to be an event which our delegates, speakers and sponsors can be truly proud of," said Piers Brown, Founder of Fractional Life. ]]> FractionalLife.com) ]]> ReachTogether, is marketing an 11-bed villa on the French Riviera, priced for the Rich and Famous. However, owning a part of this property could be achievable if shared between a large number of people, who were interested in a taste of unique luxury once in a while. Buying a share that would entitle a joint-owner to 1 week every two years would make the cost within reach of many more people, than the select few who could purchase whole ownership. Robertson suggests, [by] "Using the power of fractional ownership and asset sharing, fun and luxury things are within your reach!” Fractional ownership isn’t just about making the luxurious achievable, it can also bring the dream of owning a holiday home within the reach of people on modest incomes. For instance, homes in Bulgaria are cheap (when compared to Western Europe/USA) but still out of reach for many people. However, if you were to buy with 10 other people then each 10th share would entitle you to spend 5 weeks every year at the property, and be much more affordable. In each case the joint owners would own their own fraction of the freehold estate. If the property were to be valued periodically, and the joint-owners were offered the chance of exchanging their share for the full market value, then they could benefit from any increase in value. The Caribbean offers many opportunities now for Fractional Ownership - both of shares in one extraordinary home or in Private Residence Clubs. Ask any of our Coldwell Banker agents on the islands.]]> Entrepreneur.com by Dan Kennedy uses the term "fractional ownership" as it relates to customers, and to marketing products. He states, "A radical approach to innovation and marketing isn't restricted to big corporations--there are plenty of small businesses ahead of the curve. Let me tell you about a few of our Glazer-Kennedy Insider's Circle members who have reinvented the concept of fractional ownership." The owner of a pizza chain in Winnipeg doubled her sales and size last year through innovations uncommon to pizza restaurants. Kennedy explains, "[She introduced] levels of membership with fees automatically charged to customers' credit cards every month (stabilizing income and locking in use in advance, thus protecting customers from competitors' seductions); multiple ways to take home the products--cooked and ready to eat, frozen and ready to heat, "from scratch" baking kits (for family fun nights), raw dough--and with comprehensive direct-to-customers marketing built around a newsletter and website." A realtor in Florida, in the business of rental homes to vacationers, reinvented his approach by creating clubs, "bundling excursion and adventure activities, and [using] extraordinary marketing with an emphasis on the experience, not 'X' number of bedrooms plus a pool for 'Y' dollars a day." His business is booming. A barber combined a classic men't barber shop offering straight razor shaves with "a men's club atmosphere and different programs of membership--as opposed to cafeteria-style pricing." It is interesting Kennedy "defines" these business models as "fractional ownership." Addressing the entrepreneur, he concludes, "Begin here: Question and be willing to throw out any and every industry norm, tradition, current belief, idea and practice now defining your business, as you advertise, market and operate it and as customers perceive it. Then search for opportunities to make your business something entirely different and more meaningful to the customer than just a provider of goods and services. Very, very, very few business owners are willing to engage in such radicalism. We have a term for them: multimillionaires." Perhaps fractional ownership is in the "eye of the user" rather than the presentation of the marketer. ]]> Realtor.org what he adapted from those first sales, he answered, "I learned that you need to listen to your customers and pay attention to how they react when you are showing different homes. Practitioners need to remember what the client likes and dislikes. This transaction also gave me confidence that I knew what I was doing and would be good in the real estate business." Our goal for 2010 here at Coldwell Banker is to provide outstanding customer service in every way to everyone who comes through our doors. Our wishes for a Happy New Year to all.]]> Global Property Guide.]]> Happy Holidays and Happy New Year from the Associates at Coldwell Banker. This card was from our Curacao affiliate, but expresses the thoughts of all of us.]]> Luxury Living International Magazine announced the Top Golf Communities in the Tropics. For those who want it all: resort amenities, spectacular scenery, luxury real estate offerings, and the pursuit of an active lifestyle set against the backdrop of a tropical paradise, golf course communities in the tropics are among the most desirable places in the world to live. These exclusive golf communities give owners a secure real estate investment they can enjoy today, even if it’s from a well-placed white sand bunker. Developers are building outstanding communities aligned with legendary golfers and architects such as Greg Norman, Jack Nicklaus, Pete Dye and Tom Fazio who have designed beautiful and challenging tropical courses set to rival the most renowned in the world. Ownership in such communities offers more than world-class golf; luxury residences, resort-style amenities, top-rated spas, full-service marinas, amazing views and outdoor adventures are all part of the package of a golf course community set in paradise. Here are the winners in alphabetical order - read about them at LLI: Abaco Club, Bahamas Bahia, Puerto Rico Cabo del Sol, Cabo, Mexico Cap Cana, DR Casa de Campo, DR El Dorado, Cabo, Mexico Ocean Club, Paradise Island, Bahamas Peninsula Papagayo, Costa Rica Punta Cana, DR Punta Mita, Puerto Vallarta, Mexico Puerto Los Cabos, Baja, Mexico Sandy Lane, Barbados Tucker's Point, Bermuda Rose Hall, Jamaica Four Seasons, Nevis Raffles Resort, Canouan Island Luxury Living explains the allure of these resorts, "Ultimate golf courses aside, it is the slow and relaxed pace and the surreal atmosphere of life in the tropics, particularly these special places, that remain the real draw of enjoying these World-class golf experiences. In each case the amenities, alongside the spectacular fairways, weave a nearly ethereal experience for anyone that enjoys great golf. provide a dazzling mix of experiences, great ocean courses, one-of-a-kind spas, 5 star restaurants and lists of features found in only a select few special communities in the world. These innovations will keep drawing buyers to enjoy these golf communities and to spend more time with each visit and ultimately, perhaps, to want to stay for good." Many of these special places are in the Caribbean, served by Coldwell Banker Island Affiliates. Contact your local Coldwell Banker office for ownership opportunities. ]]> Perspective Magazine will launch a standalone North American version in February, 2010. Paul Mattimoe, CEO of Perspective International, said: “USA, Canada, Mexico and Caribbean regions make up nearly 50 per cent of our readership. There has been encouragement from our readership to create an American version for over a year now so this will be one of our next additions to our portfolio, and will provide advertisers from these regions with an even more targeted approach to Business Development and promotion of products and services within the shared ownership industry. "We already have an American editor and account management team in place and substantial funds will be invested to make the publication even more widely available over the next twelve months.” (resource: Fractional Life) ]]> Winter weather is on its way to many parts of the world, but balmy spring-like temperatures are what you find in Bermuda. In fact, Bermuda’s best hotel guarantees it with The Reefs’ 68-Degree and Sunny Guarantee. In effect from January 2 through March 15, 2010, The Reefs’ 68-Degree and Sunny Guarantee rewards guests if the weather is good or bad. If the temperature fails to reach 68 degrees Fahrenheit (20 degrees Celsius), guests will automatically receive 20 percent off of all beverages for the day. If the sun is shining at 10 a.m., guests will receive a certificate for 10 percent off any one spa treatment at La Serena Spa valid for that day only. The Reefs’ 68-Degree and Sunny Guarantee is in addition to any existing special offer. Crowning a limestone cliff overlooking a secluded pink sand beach, The Reefs Hotel & Club attracts travelers who seek a Bermuda vacation in an intimate atmosphere with fine dining and personal service. With only 65 guest accommodations, The Reefs is consistently recognized as one of the world’s best hotels from leading travel industry publications including Condé Nast Traveler and Travel + Leisure. In 2009, The Reefs opened The Reefs Club, 19 luxurious, fully furnished two- and three-bedroom beachfront residences available for purchase on a fractional ownership basis. Like The Reefs, The Reefs Club delivers exceptional service and offers unobstructed ocean views from each private residence including from every bedroom. (resource: HotelInteractive.com)]]> FT.com recently reported on two new business models. The first is a concept from Rocksure, an equity destination club split into property funds. They explain, "Each fund will have a life of about eight years, after which it will be sold and shared between the members. 'We don’t have mortgages or borrowing; people buy shares in a holding company,' says David Rogers, founding director of the fund. 'The properties are 100 per cent owned by the shareholders. There is no one between my cheque book and the bricks and mortar that can go bust.'” One of Rocksure's clients, Alexander Hughes, is a believer. "He is a 50-year-old who works in finance in southeast England, and prefers this business model to that of a traditional destination club. 'I can’t see too many things that could go wrong. It’s not as if someone could take my money and then go bust. The house has been bought – the only risk is a collapse in the property market and perhaps a currency risk.'” Another company with a new shared ownership concept is Safe Haven. FT.com states, "It will buy luxury homes around the world for its members to stay in and then balance its portfolio with UK-based rental properties. The net income from rental properties will make a big contribution to the club’s running costs." While the industry has not been hit as hard as residential real estate, buyers still need to do their homework. They should understand the debt of the underlying structure, and make sure they have an exit strategy to recover their investment. That said, there are some great deals right now in luxury properties worldwide. ]]> Ritz-Carlton Hotel Company, L.L.C. is opening 3 new resorts in time for the holidays. Opening December 9, The Ritz-Carlton Highlands, Lake Tahoe, a $300 million slope-side project, offers ski-in, ski-out access in winter. The 170-room contemporary lodge design also includes 23 private Ritz-Carlton Residences and 25 Ritz-Carlton Destination Club Residences. Adjacent to the resort, The Ritz-Carlton Club, Lake Tahoe offers two to four bedroom fractional residences with mountain and valley views of the Sierra Nevada. The fractional ownership project prices range from the low $200,000s to more than $700,000 per interest. On Dec. 18, Dove Mountain will open, in the foothills of the Tortolita Mountains. The 250-room low rise resort northwest of Tucson, AZ is surrounded by thousands of majestic Saguaro cacti and ancient Petroglyphs left by the Hohokam Indians. To enjoy the serenity of the high Sonoran Desert, guests can select from a small group of secluded casitas overlooking Wild Burro Canyon. And on December 22, The Ritz-Carlton introduces the first of a select group of Reserve properties, which are a brand extension planned for unique destinations around the globe. At Phulay Bay, in Krabi, Southern Thailand, 54 villas and pavilions have been designed to embrace the serenity and magical features of the country. Guests enter the resort over a stepping-stone walkway that leads them to a wooden Thai pavilion situated on an island surrounded by thousands of gently flickering candles. The contemporary Thai style blends seamlessly with the canopy of forests and flowers amidst the dense vegetation. Set on the shores of the Andaman Sea, guests of the resort can walk to the beach.]]> Real Estate Channel. "Charlton said there's a difference between the U.S. and rest of the world. 'In the U.S., there are projects to be had out there with people who have the wherewithal and the cash. There's a movement within the industry for people to say, 'Hey, this is a great time to build because you'll never get a project done more inexpensively.' And these people will have product ready to go when the economy changes. Enthusiastic people are getting projects ready and even under construction during these down times because they recognize the advantages of building now and getting ahead of the rest of the market. "'Internationally, I think there is more reliance upon typical financing models and going to a bank for a construction loan,' Charlton added. 'But international banks aren't releasing money very easily. We have seen a lot of projects fold their hands and say, "We're going to wait," on even those projects already approved. Some international courses with financing components are having big problems because people will put an initial deposit down on a lot, but the banks won't give them the money to finance the rest of the deal. International banking markets are in disarray and causing projects to be delayed. But we'll see how things go in a few months.' "Charlton concluded, 'Money and projects are out there -- you just have to be courageous, utilize your networks, and be more creative to find them.'" Probably the same could be said of new development projects worldwide - utilize networks, be creative, and responsible. From his comments, future fractional ownership projects with golf courses should be available.]]> Perspective Magazine's Forum site for more information.]]> Construction at the Anabui Private Residence Club – part of the Tierra del Sol resort in Aruba – is well underway, with the first units, including a fully furnished model residence, expected to be delivered in January. Located on a hilltop, the Anabui Residence Club will be the first private residence club on the island. It is designed by Stofft & Cooney Architects from Naples, Florida, and will feature 36 concierge-serviced residences. A limited number of units was released this year at pre-construction prices starting at $149,900 for a 1/10th share. These share interests give owners 28 nights per year, flexible scheduling, and additional usage space available. Anabui is also affiliated with the Registry Collection. Tierra del Sol offers golf, spa, fitness, food, and relaxation upscale amenities. (resource: Fractional Life)]]> Fractional Life)]]> One of the largest resort/residence complexes in the Dominican Republic is Caso de Campo, winner of Travel and Leisure Magazine's "#1 Family Friendly Resort in the Caribbean" and "#1 Golf Course in the Caribbean" awards. The resort sits on 7000 beautiful acres, offers more than 1200 privately-owned villas, and outstanding amenities. Other attractions are the Village of Altos de Chavon, an artisan center reminiscent of a Renaissance Italian village. The town's coral block and terra cotta buildings line the cobble-stoned paths and house craft workshops, artists' studios, galleries, shops and restaurants. The village is also home to a 5,000 seat open-air theatre. Los Altos, the luxury residence club, is a 116-unit complex with 1,2,and 3 bedroom Caribbean-style villas and lofts in 15 buildings. It is a private collection of primary or secondary residences for those who demand ultra luxury ownership without the complications of maintenance and servicing. The Los Altos club enjoys the golfing, spa, and resort features of Caso de Campo. Included are 200 car spaces and 116 golf cart spaces. The buildings are 3 and 4 stories, and units range from 1,500 SF to 3,500 SF. Contact our Coldwell Banker agents in the Dominican Republic to discuss fractional ownership opportunities in Los Altos. ]]> Fractional Life, Fuerteventura agent GoldAcre Estates has launched a fractional ownership program in conjunction with the Fractional Property Group, which will eventually be operative throughout the Canary Islands and Spain. Director John GoldAcre said the programme will offer either four or six shares per property, which would give each individual owner either two or three months usage of their property throughout the year. The sales are being launched with two different styles of property, frontline coastal apartments and a villa. The villa is situated close to one of the main towns in the north of Fuerteventura and features two bedrooms, parking and gardens. 1/6th shares are prices at €32,000. Fractional ownership is undoubtedly the development and sales vehicle worldwide for luxury properties in the near future.]]> Fractional Property Guide. The web site is the 1st of a suite of directories planned by Owners Perspective Magazine which reaches nearly 50,000 consumers per month through an innovative mix of online and print subscriptions and distribution via more than 140 first class and business class airport lounges around the world. The magazine highlights fractional properties consumers can contact directly. Each fractional ownership property has a full page listing with essential information, images and the option for streaming video, plus a direct enquiry form where consumers can request anything from a brochure or availability of fractions, to requesting a sales call. Owners Perspective Magazine also offers a number of enhanced products and services for developers and marketers of Fractional Properties. (resource: PR-Inside)]]> The Advantages of Owning a Part Share in a Property Abroad "You can afford to buy into a more luxurious property than you could afford to buy by yourself outright, therefore you may gain access to superior amenities and facilities as a result – and you buy yourself the right to a luxury holiday for a set term every single year. "Your share is saleable or transferable if you decide you no longer want it. You have no management or maintenance worries with the property as it’s all taken care of by a management company - for a fee. Apparently a purchase made in a luxurious fractional ownership development is an investment that can theoretically increase in value – however we’re not sure anyone can prove this…and finally, you can guarantee your holiday every year in a stunning location for a one off down payment on what some say is a lifestyle investment. "The Disadvantages of Fractional Ownership of Property Abroad "You have no real control over the property, you cannot change it, redecorate it, alter the furnishings and finishings…but there are those who will tell you that every fractional ownership property abroad is a luxurious one, so you might not need to make any changes. However, personally I hate being told I can’t do something, and if you’re like me, fractional ownership’s restrictions on your own personal input into ‘your’ home may annoy you. "You are sharing your property with lots of usually unknown people, therefore there is a risk involved in that others may not be so careful with the property as you are, and this could be passed on to you in the form of higher annual management and maintenance charges. "Ultimately you don’t own the property – therefore you cannot benefit in the same way that you could if you bought your own home overseas, invested in it, improved it and then resold it for profit. You are more restricted in terms of getting out of the deal often, this is because it is generally harder to sell a fraction than a whole. And the bottom line is, aren’t you just buying a posher version of a timeshare? "How to Buy Fractional Ownership Safely "To that end you have to ensure that you look into the management company, the developer, the property itself and above all else, the contract that you will be asked to sign. Everything has to be researched and be watertight in terms of protecting your investment, your capital and your rights. And finally you need a good lawyer who understands the legality of fractional ownership who can ensure you understand all the potential pitfalls, and who can ensure that the contract you sign is as secure as possible." To read the full article, visit ShelterOffshore.com. ]]> Fractional Life echoes the feeling that Fractional Ownership is set to Boom. They unequivocably state, "Fractional ownership of real estate will become the ‘default’ way to buy leisure property over the next decade, and is set to see a surge in popularity." They quote Graeme Grant of Fractional World as saying, "In the next five years, I have no doubt that fractional ownership will outsell whole ownership.” And Nick Turner, of the Registry Collection, "In five years time I can see fractional ownership outselling whole ownership by 10 to one." US property lawyer Andy Sirkin added, “In 10 years' time, fractional ownership will be the default way to buy overseas property.” Interested? Contact a Coldwell Banker agent at any of our Caribbean affiliates to discuss Fractional Ownership opportunities. ]]> Fractional Life, "The group proposed creating the role of somebody who could champion the fractional industry, working within the remit of FSOTA (The Fractional & Shared Ownership Trade Association) but funded by developers committed to raising and managing awareness of fractional ownership. It would need somebody who is an 'international and commercially aware individual who could build relationships with the media and speak with gravity to governments and CEOs to promote a positive agenda on fractional,' the group agreed. "FSOTA is now coordinating input from the group about the job description and criteria for the proposed individual." ]]> DailyMail.Co.UK) ]]> Until now, the Bermudan government has restricted the sale of whole-ownership properties to foreigners, making real estate scarce and very expensive. Trying to change its image of high-end snob appeal, the government has decided to attract recreation property buyers - or young money vs. old. Taking this decision to the next step, the government has, for the first time, sanctioned the introduction of fractional ownership for non-nationals. Off-islanders can now own a deeded part-share of property at a fraction of the cost of whole ownership in a country with the third highest per capita income in the world. Due to open in July, the Reefs Club is among the first fractional ownership projects in Bermuda. The development will have 19 two-and three-bedroom residences. One-tenth ownership will cost US$350,000 for a two-bedroom home and US$410,000 for a three-bedroom. An offshoot of the Reefs Hotel, each of the club units will have spa baths, gourmet kitchens, unobstructed ocean views, and stone and glass walls. The owners will have concierge service, lounge, 3 restaurants, rooftop putting green, fitness facilities, and infinity-edge pool. According to Fractional Life, so far 27 quarters have been sold, the majority to US and Canadian buyers, and 1 to a UK buyer. Chrissy Frith, Sales Director of the Reef, stated, "We are receiving an enthusiastic response, particularly from Calgary and Toronto residents." Bermuda's finance ministry estimates there are about 3,000 Canadian residents living now in Bermuda. Contact a Coldwell Banker agent about this opportunity. You will need a local agent knowledgeable in fractional ownership sales to represent you. ]]> Tim Henman, whom some of you will know from his tennis titles, is also a successful developer and real estate entrepreneur. He has made a tidy sum purchasing bargains in southwest London in a falling market and renovating them for sale. But now Tim, retired for 2 years from A-level professional tennis, wants to relax and has turned his attention to La Retraite, hidden away among pine forests in Provence, with views stretching down to the Côte d'Azur. It is one of 21 luxurious villas worth on average £1m-£1.5m, belonging to the fractional ownership Hideaways Club. Henman says, "This is my idea of the perfect holiday home. It's a beautiful location, there's no one overlooking us and the house has kept traditional features such as the old beams, but it also has great contemporary touches." He continues, "I didn't want the upkeep and hassle of owning a home abroad and I also couldn't choose just one location for a holiday home, so to have access to a portfolio this diverse, without any responsibility, is fantastic," says Tim, whose only other overseas investment is in Philip Moross's hotel/apartment scheme in Grindelwald in Switzerland. "We spent every holiday at my parents' holiday home in the Algarve, but I wouldn't want to keep just going back there. I love Italy and the south of France, and I can ski again now, something I wasn't allowed to do while I was a tennis player, so Lucy and I are looking forward to staying in some of Hideaways' chalets in France or Switzerland or trying new places such as Marrakesh," he said. Henman endorses the concept of fractional ownership. "I think fractional ownership, which I knew from using NetJets as a tennis player, works well as a concept. It's often confused with timeshare, but with timeshare you don't own anything. With fractional ownership, you have an asset," he explains. Pure investments have little interest to him, he says, "But this one [Hideaways] has two sides to it: the investment aspect and there's also the lifestyle factor. And we intend to make the most of it." Henman's exit strategy? "If this was just a way to make money, I'd have researched that thoroughly," Tim replies. "But as I'm keen for us to enjoy properties as a family, I'm using this for what it is and haven't given much thought to that aspect. We've invested in an asset that is likely to appreciate and will give us great enjoyment." (resource: Telegraph.co.uk) ]]> RisMedia. "PRIMARQ is currently in the process of building the first-ever exchange for investing and trading in owner-occupied real estate equity. While the exchange is not yet open, its premise could change the way in which the real estate industry does business. Based on the same principles as NASDAQ, PRIMARQ is bringing a method of shared ownership to the housing industry—one of the only industries in the country that doesn’t revolve around a shared-ownership foundation. "With housing stock being the single largest asset in the U.S. and there being no practical method of shared ownership, PRIMARQ is working on behalf of the homeowner, home buyer and investor to put the American dream within reach as the company lowers the barrier to homeownership. “'Our [PRIMARQ] approach to equity financing is to enhance the downpayment capital within the real estate market, and rather than overleveraging the process, we have created a system in which a portion of the home can be sold,' states Steve Cinelli, founder and chief strategy officer. 'Equity financing will add affordability and sustainability to the real estate market as it reduces the amount a homeowner pays monthly as the mortgage loan is smaller. “'Our equity financing solution can assist buyers into getting into homes and it applies to all income levels,” says Cinelli. 'Real estate transactions will become more affordable because individuals buying homes won’t have to borrow as much money from banks and their payments won’t be as high as they have been in the past- creating more financeable transactions and more sustainable ownership.' "PRIMARQ has provided an innovative solution that is well-timed and will have a huge impact on the real estate industry as a whole.” ]]> The inaugural Alternative Ownership Conference for Hotels and Resorts in Asia Pacific(AOCAP) was recently held in Phuket, Thailand. The two day conference on alternative ownership concepts for resorts and real estate was well attended by developers, resort owners and vendors, not just from Asia but around the world. Alternative Ownership concepts are not new. Models include Fractional Ownership, Vacation Ownership, and Private Residence Clubs. Global examples include Marriott, Banyan Tree, Hyatt, Wyndham, Accor, and Disney, all of which operate alternative ownership models. Vacation Ownership is a well established business model worldwide for resorts, and has a proven track record of offering a new revenue stream to resort owners and operators. Fractional Ownership of property offers a new dynamic altogether. Asia Property Report published comments by Bryan Lunt, Chairman of Absolute World Group - active in alternative ownership models - and founding sponsor of AOCAP. He commented, “Many real estate developers are now interested in the fractional concept while many resorts are opening to ideas of vacation ownership. Operators need clear understanding and advice on implementation. At the AOCAP conference industry experts shared their valuable knowledge, experience and case studies on how to help generate revenue and boost occupancy, both of which are of great interest to developers and buyers alike.” The conference was sponsored by The Registry Collection, Preferred Residences, Hughes & Glanville, Raimon Land Private Residence Clubs among others. Media Partners included FractionaLife.com, Perspective International, and several more. ]]> Kindle, which is widely viewed as the #1 e-book reader in the USA, is finally making its international debut. The Kindle has always relied on Sprint’s EV-DO network to give owners wireless access to digital content wherever they are, but of course, the CDMA radio won’t function in most overseas nations. In order to remedy that, Amazon has teamed with AT&T in order to sell a GSM-ready version of the device, one that’s capable of downloading books in over 100 nations. Amazingly, it seems as if the roaming fees are included; if you buy an International Kindle, you can download books in over 100 supported countries just as you would in your homeland, all with no extra cost. The Kindle U.S. & International Wireless version will otherwise remain exactly the same as the U.S. Wireless version, though pricing took a nice step down. The U.S. Kindle is now priced at just $259, down from $299 earlier in the week; the Global Kindle will sell for $279, which represents a $20 premium over the USA-bound edition. If you even think you’ll travel overseas, and you’re looking to buy a Kindle, the extra $20 is a sound investment. It’ll give you the ability to download new material while sitting on a beach in most parts of the world, enjoying your fractional ownership property. ]]> BVI real estate and those looking to buy or sell will have noticed that the number of properties listed for sale this year has certainly risen. Hardly suprising, given the pickle the world economy has gotten itself into, but what they will also have noticed is that asking prices have not dropped. Yes, the odd one or two may have gone down a dollar or two, but most have not - and some have actually gone up. That’s not to say that accepted offers might be lower than they might otherwise have been, but to be frank, we’re not seeing a lot of that either. Locally, all the indicators would suggest that the BVI economy in general is down a bit but is certainly not as bad as elsewhere in the world. With caution being the better part of valour, the number of real estate transactions locally is down but certainly nobody is giving anything away and prices are therefore holding. In the ex-pat or “Non-Belonger” market, the same is true. Perhaps the nature of the overseas buyer in the British Virgin Islands has something to do with that. Most of our Non-Belonger clients tend to be reasonably successful, middle-aged folks, who enjoy the peaceful, calm way of life here. They had the patience to survive the process of purchasing property in the BVI so they certainly passed the first test! Lets not call them dull, but on the whole they certainly aren’t the nightclub and casino-loving, gambling, risk takers who are likely to be found purchasing property on South Beach or in Nassau, Bahamas. So, being somewhat more conservative, perhaps they haven’t lost their shirts in the downturn, and therefore don’t have to give anything away at a bargain basement price. Just a thought. There is, of course, one far more obvious reason why prices of BVI real estate have held up. There’s not much of it – there is a limited supply - and lots of people would still like to own some, given how beautiful the islands are. Now, as we all know, there are lots of scenic places in the Caribbean, so we wondered if the same thing was happening on other islands. Coldwell Banker has over 3700 offices in over 47 countries around the world, including offices on 16 islands throughout the Caribbean (we’ll include Bermuda since they are really one of us, even if that’s not quite geographically accurate). So we thought we’d call around and find out if other islands are experiencing similar things in their markets. Here is some of the feedback… Brett Mucklow, St Maarten Our local market is very strong and quite resilient. Islands have limited land and no possibilities to expand. We compare our market to some of the exclusive areas in the US such as the Hamptons, where prices hold quite well. Most island populations are growing, so property is in demand. Our island is serviced by direct air flights from 10 or so countries on 3 continents. Outside of PR, we are the largest Caribbean hub. We have a diverse client base. Our economy is only tourism but it is very diversified. Cruise ship business, timeshare, villa rental and the marina/mega yacht industry are all parts of our tourism foundation. This diversity has insulated us and given some stability. In addition, we have the French side – St Martin – that uses the Euro, so with two of the world’s largest currencies, we are protected as one offsets the other. French currently shop on our side as the Euro is strong and visa versa when weak to the dollar. Amy DeWilde, St. Croix St Croix has been prominently featured recently in US national publications like Coastal Living as #2 [in their article] of the top ten spots to snorkel in the Caribbean, and in USA Today’s Destination section. Recognition like this and the discovery of our extremely attractive real estate values are keeping our market active. There is good inventory for buyers. Sellers who recognize the need to be flexible with both price and financing options can successfully find a buyer. Our market is also helped by the lowest interest rates we’ve seen in a long time. St. Croix’s very diverse topography, many attractions that appeal to nature-lovers and history buffs, some of the best diving in the Caribbean, and great dining are but a few of the reasons that buyers from afar decide to make St. Croix either their primary or second-home destination. Susan Thompson, Bermuda As the leading real estate company in Bermuda, we are constantly called upon by consumers, attorneys, bankers, architects, developers, and other businesses for our in-depth industry knowledge. That is why Coldwell Banker Bermuda Realty takes great pride in recording real estate sales details, to ensure we are armed with factual and supportive data that assists companies and individuals to make informed financial decisions. Our database (‘Realty Plus’) extends back 20 years, has in excess of 7,500 entries recording over $5.5 billion in island-wide real estate transactions. We have incorporated over 30 search criteria, thereby permitting queries by name of property, date of sale, acreage, price bracket, property type and much more. We can carry out research assisting our local and international clientele to make very important decisions relating to property acquisition. A year ago in June, we reported that during the first half of 2008, the average price of all real estate transactions was slightly more than $1,000,000 with single family homes approximately $1,400,000. Compare that to figures recorded to date for 2009 (bearing in mind that 2009 records have not been finalised) of $950,000 for all records and $1,460,000 for single family homes. Conversely, the average price for condos was $823,000 in the first half of 2008 verses $733,000 thus far for 2009, signifying an approximate 11% decrease in condo prices, but very little variance in other areas of the market. It is interesting to note that this figure is reminiscent of 2004 when the average price of condominiums was $742,000. On the inventory side of the equation, we currently have 295 active listings. The yearly average number of sales transactions island wide over the past five years is 553, hence the current inventory represents just over 6 months supply. Condominiums still represent 60% of the inventory, which is good news for first time buyers looking for 95- 100% financing. The banks are still lending up to $1,000,000 to qualified purchasers and 36% of the inventory is presently in this price bracket. In conclusion, consumers continue to purchase real estate in Bermuda, but at perhaps a slower pace as there are more choices. Prices have come down in various sectors of the market which is encouraging for those looking to own a piece of the rock. Overpricing your property is not an option if you wish to sell in this market, as buyers are well educated, banks are being conservative with appraisals, and there is lots of competition for most properties. However, ultimately, everything will sell at the correct price. Louise Peterson, Turks & Caicos Due to the large number of condo projects that completed in 2008 and 2009, and the slow down in the North American economy, current inventory levels in the TCI are up around 20%. We've experienced price softening somewhat especially in the condo and in-land housing markets. As the new kid on the block, TCI found over the last 12 - 15 years demand strongly outweighed supply. This meant few prime properties were available for sale and year-over-year prices continued to rise. Record pricing levels were achieved along the Grace Bay hotel and resort area, as well as waterfront homes and estates. The basic fundamentals have not changed though, and TCI offers a fantastic lifestyle investment opportunity- particularly for Canadians, where the market has stabilized in the major cities since late spring and their dollar is strong. Owners in the TCI wishing to sell their properties over the next season have priced it accordingly, and have begun to see activity pick up with multiple and back up offers being presented. Savvy investors are returning to take a second look at TCI. Value is key and this new or returning investor is looking to hold the real estate for the long term. Inventory levels remain high but this means that purchasers have an opportunity to select from properties not previously offered for sale and at levels not seen in the last 3-4 years. ]]> FractionalLife, “We fully expect the fractional interest segment of the resort real estate industry to rebound more rapidly and more aggressively than the whole-ownership segment, as the economy continues to rebound. This is due to the increased value and rationality of the concept for the consumer, and the broadening of the market and the greater profit margin for the developer. Such heightened interest is occurring on an international basis.” Ragatz will be the keynote speaker at the Alternative Ownership Conference of Hotels and Resorts, and a workshop director at the HI-PAC Conference. He and his team have assisted clients to develop both large and small projects in more than 70 countries. ]]> Fractional Life, Problematic business models and lack of consumer awareness are still holding back fractional sales in Europe, according to several industry professionals. Charles Weston-Baker, Savills’ head of international residential, said: “We’ve taken on five fractional ownership projects so we have tried to make it work. We strongly believe in fractional ownership but haven’t yet seen the right product.” Piers Brown, founder of Fractional Life, said, "If it’s [Savill] simply targeting their existing database of whole ownership clients, there will be little interest as fractional real estate is a completely different sell, and if sales commissions are based on a whole ownership model, for sure it’s going to fail." Nick Turner, VP & head of new business development at The Registry Collection says only fractions with low entry prices in hotspot destinations are achieving high volumes of sales. “The companies who are selling are offering an attractive package that might include finance, and some companies are also building in a timed exit strategy.” But according to Paul Anderson of consultancy Fractions Abroad, value is more important than price: “Some people say that cheaper fractions are more successful but we’re finding that people want the value of the property they’re buying. Smaller fractions increase the relative cost to the end user. We’re seeing our core business in up-trading clients, those paying around £100,000 who can buy a fraction in a three or four-bedroom villa with a pool instead of a one-bedroom apartment in a big block. The difference in lifestyle this offers is absolutely dramatic.” The industry is still relatively new so sales models are "under construction," so to speak. And not every model will work in every country or for every situation. More than residential whole ownership, developers and realtors involved in Fractional products need to be flexible and creative to offer products the public wants and trusts. ]]> NewSys.Co.UK, here is a quick guide to Fractional Ownership considerations. Read the full article at PR-Inside. 1. What is Fractional Ownership Fractional ownership allows you to buy part ownership of the equity in a given property. Typically the fractions purchased are between 1/6th and 1/12th, and allow you to use the property for a length of time related to the size of your portion 2. Why Fractional Ownership The key attraction of fractional ownership is that you own a deeded asset, which can appreciate in value and be sold on at a time of your choosing. With a timeshare, you buy multiples of time in a holiday property, with the right to use it each year, typically for a fixed term of between 20 and 80 years. You are buying the right to holiday at a resort (or resorts) for a set period of time each year – you are not buying an equity interest in the property. With fractional, however, you are. 3. Key Benefits *Reduced cost: it is more cost-effective to share the ownership of a second home with a small group of owners. This also extends to the shared costs of maintenance. *Amount you spend tied to amount you use: you get the same realistic use as you would for an outright purchase, but for a fraction of the price (assuming you use your vacation home only a few weeks a year). *You own a deeded asset: which can be sold at a later date, and has a chance of appreciating 4. Legal Protections *Looking ahead, in February 2009 the European Parliament and Council of Ministers adopted a new European Directive covering the sales and marketing of timeshare, long-term holiday products, resale and exchange - with implementation due by all EU member states by 2011. The main elements of the new directive are a 14-day cooling off period, with no deposits allowed to be taken during that time. There are also requirements on full disclosure and the harmonisation of laws across all EU states, after each country passes this into their own statutes.” *To date, no national law has been passed in the United States, or the Caribbean countries. 5. Choosing a Fractional Property *Be sure the property you consider does have deeded ownership *As with any property, know your costs, both maintenance and purchase fees *Is the building still under construction? What builder warranties are there, if new development? What is included in the price? If the builder has financial problems, is your deeded share protected? *Check your local market sales data for fractional vs. whole ownership and make sure it does represent value for your real estate portfolio. Any of our Coldwell Banker agents can advise you with local market data. *Do you due diligence both on property condtion and legal issues, especially for the specific country you are considering. See the purchase documents in your own language before signing. 6. Check out the Developer *Ask for references *If they have sold through fractional ownership on other properties *Does it own the property it is selling (again, a realtor can provide you with a title search to determine this) *Is Fractional Ownership legal on the resort being marketed 7. Understand the Usage Plan How will time be allocated, are the weeks variable or fixed, will they fit your needs, can you rollover or trade unused time? 8. Is Exchange Available *In the same way that destination clubs allow you to access a range of holiday properties, many fractional properties are part of an exchange program – either through the developer's own existing portfolio or via membership of a specialist exchange company. *An exchange programme offers you the opportunity to swap your weeks and holiday in different destinations, while retaining the equity stake in your original property. Find out if this is available, unless you are sure you want the same destination for the length of time you own the property. 9. Financing At present, mortgage finance for fractional property is rare. An alternative is to remortgage a main residence and use that equity to fund a fractional purchase. A recent development has been the offering of low cost fractions. in the US, one increasingly popular method of financing fractional purchases is by taking up stock collateralized loans, whereby a loan is granted with a publically traded stock portfolio as collateral. Make sure you check your financing options before you sign anything. 10. Should you Consider Fractional Ownership an Investment *Traditionally, fractional ownership has been a luxury lifestyle product, sold on the inherent benefits of owning a holiday home. However, a more recent development has been for developers to highlight the investment potential of fractional – based on ownership of a physical asset that can be sold at a later date. *The investment potential is essentially based on three main factors – potential capital appreciation, potential rental returns and the ability (in certain cases) to purchase the property via a SIPP. *As with any property purchase, values can rise and fall, and investors need to be realistic about the re-sales potential and scrutinise rental guarantees. If buying for investment reasons, it is important to evaluate the property on those terms, and check the taxation and property laws in the country you are buying in. 11. The Sales Market In the US, there is a healthy resales market for fractional property but in Europe, the market is not yet as established. As fractional ownership is a relatively new concept, many are now buying for the first time, so there hasn’t been a high level of resales on the market. Developers may also offer resales. These are great points to thoroughly investigate if you are considering a Fractional Ownership purchase. Our thanks to NewSkys.Co.UK for an excellent primer. ]]> press release, "The new equity-based membership program not only offers the industry-leading fractional ownership interests now known as Home Club Membership, but also deeded real estate, in the points-based Portfolio Membership which affords the opportunity to discover a wide variety of premier luxury destinations and accommodations. Further adding to its achievements in 2009, The Club was named top 'Fractional' vacation home purveyor in the world for Robb Report's 21(st) annual 'Best of the Best' issue." The Ritz-Carlton Destination Club Members enjoy vacationing in some of the most sought-after vacation spots. The first two locations announced in 1999 were Aspen Highlands, Colo. and St. Thomas, U.S.V.I., offering Members the best in ski and sun. The brand has since debuted properties in Bachelor Gulch, Colo.; Jupiter, Fla.; San Francisco; and Abaco, The Bahamas, as well as the recent opening of Kapalua Bay in Maui, Hawaii, in May, followed by the opening of Lake Tahoe, Calif. in December. The Ritz-Carlton Destination Club offers one- to four-bedroom floor plans ranging from approximately 570 - 2,800 square feet. Memberships start in the low $100,000s per interest. ]]> HotelsMag. ]]> Fractional Life.]]> Mainsail of Beaufort for more information. ]]> Coldwell Banker Real Estate has had an amazingly successful year-to-date, filled with awards and accolades from the likes of J.D. Power and Associates and the Wall Street Journal. With the Fall season approaching, I thought this would be an excellent opportunity to take stock of what weve been able to accomplish so far this year. While other real estate companies have retreated during the recession, Coldwell Banker has continued to deliver game-changing moves that put the brand out front, attract consumers for the long run and, in turn, change the way business is done both in the U.S. and internationally. Coldwell Banker initially broke new ground this year in March with its use of Microsoft Surface as a new way of engaging homebuyers. Microsoft Surface turns an ordinary tabletop into a vibrant, interactive touch screen that stops consumers in their tracks when they see it. Through the touch of a hand, consumers can expand or contract the search area and locate listings, Coldwell Banker offices, and area amenities. Coldwell Banker affiliates are planning to utilize Microsoft Surface in malls, airports, hotel kiosks, high traffic offices, etc. to augment their local marketing efforts. After our debut of Microsoft Surface, Coldwell Banker really began to stake a claim as the most innovative real estate company in the world today with the launch of On Location, the Coldwell Banker YouTube channel, in early May. Previously an untapped real estate resource, YouTube and its parent company Google eagerly collaborated with Coldwell Banker to debut On Location. Utilizing the ultra-local insight Coldwell Banker affiliated sales professionals offer, consumers can now fully engage in real estate search and discovery, and drill deeper into the home buying and selling process. On Location takes Coldwell Banker agent profiles out of words and static images and into the vibrancy of video. Our sales associates now go to market with a differentiator that allows their personality and professionalism to shine through and instantly connect with consumers. Likewise, properties can gain a greater first impression than a series of photos can ever provide. To date, more than 300,000 have viewed the video content and agents have already posted more than 3,000 videos, to make On Location one of the most robust channels on YouTube. Coldwell Banker On Location complements the brand's flagship Web site (www.coldwellbanker.com) and extends the company's robust social media platform, which includes Facebook pages for the brand and its two founders, Colbert Coldwell and Arthur Banker, a Twitter feed, and profiles on Flickr and FriendFeed. And the excitement of our recent Iphone application announcement underscores even more how Coldwell Banker continues to raise the bar with interactive real estate technology. We are on TV, on the Web, on mobile phones. Our "get listings anytime, anywhere" mantra is working. We flexed our muscles during Coldwell Banker Legislative Week in late spring. Just days after so many Coldwell Banker broker/owners and managers met with U.S. Congressional leaders, I ventured to Capitol Hill and met with key members of the House and Senate, as well as the media, to have a dialogue on the critical issues still facing the real estate industry. The leadership role we have in the industry is because of our agents, the heart and soul of the Coldwell Banker organization. This summer, a respected third party has also recognized how good you are. Coldwell Banker was named the winner of the 2009 JD Power Seller Satisfaction Award in August, validating the fact that we have the best and most dedicated sales force in real estate. And a recent Wall Street Journal survey of its subscribers found Coldwell Banker would be the most considered brand for future transactions. Clearly, our sales efforts are being recognized by consumers. I couldn't be prouder of this outstanding brand. Wherever the consumer has come across Coldwell Banker over the past year, they have seen us redefine how the brand, the industry, and the entire real estate process is viewed. As we finish up 2009 with - hopefully - a renewed real estate vibrancy, I'm confident we will look back on this year as the time when Coldwell Banker took technology by the horns and created a new era in real estate innovation. Visit any of our Coldwell Banker Island Affiliates in the Caribbean to discuss our products, innovation, and commitment to customer service. ]]> PR-Inside, "Nick Turner, head and vice president of new business development for The Registry Collection, Europe, also argues that fractional provides access to regions where it is difficult to find new offerings. He told Newskys: 'The Provence Club in France, for example, has affiliated three properties in Avignon, Gordes and Aix-en-Provence, which are all in exclusive locations where it is virtually impossible to build any new developments due to rigorous planning regulations. This sets property prices at a premium and significantly increases desirability of ownership in all these locations.'” For leaseback specialists, though, a key differential between the two types of ownership hinges on the investment potential. Traditionally, leaseback has primarily been sold as an investment vehicle, with a degree of lifestyle, while fractional has tended to be the opposite. However, more fractional opportunities are now pitched as investment opportunities - either though rental returns or appreciation - thereby reducing the lifestyle/investment contrast between the products. Another consideration is the time you intend to hold the investment. With leaseback, you typically lease the property back to a rental management company for a minimum of nine to 11 years, depending on the contract. Therefore, you are technically making a longer-term commitment than with fractional. An important element to evaluate is the value of any exchange element provided by fractional properties. PR-Inside concludes, "While the investment/lifestyle division isn’t perhaps black and white, with a number of fractional properties now pitching themselves as investments and many leaseback buyers purchasing for lifestyle reasons, the key is to ascertain exactly what you want, and where, and match the product accordingly.” ]]> FractionalLife.com) ]]> OwnerGroups.com, a company that forms small syndicates to buy properties. They don't develop properties but starts with buyers - 3 to 8 per property - and finds them a property, then puts the deal together. Steve Last, director of OwnerGroups, says, "In a climate where people have less money available to buy and run a property, but they still want their place in the sun at the best possible value, now is a good opportunity for shared ownership schemes." He continues, "A part share in something really good is better than 100 per cent of something mediocre. Top quality will hold its value better and recover faster, and if you are splitting running costs, you don't have to hope for rentals, which are also becoming more competitive." Read more about the company's success stories, at Telegraph.co.uk. ]]> RISMedia, Coldwell Banker Real Estate LLC announced the launch of the first-ever international home search application for iPhoneTM and AndroidTM-powered devices. The Coldwell Banker Real Estate mobile application enables users to easily search for property listings and recent home sales in 28 countries in North America, Europe, Central America, Caribbean, Australia and South America. The results of these searches as well as the search itself can be saved in a personalized ‘My Coldwell Banker’ account newly created from the user’s smartphone or added to an existing account with coldwellbanker.com by logging into the site directly from the handheld device. Unique to the Coldwell Banker application, searches that are saved to an app-created ‘My Coldwell Banker’ account will automatically generate notifications of new properties and open houses, alerting the user to updated results right on the device’s homepage. “While the desktop computer remains a proven screen, Coldwell Banker recognizes that today’s technologically-savvy consumers are also using smartphones to access information on-the-go,” said Michael Fischer, senior vice president of marketing for Coldwell Banker Real Estate LLC. “We are committed to improving the consumer experience and will continue to introduce innovative technology such as this mobile application to provide our customers with up-to-date home data the moment they want it and to wherever they may be.” Contact any of our Coldwell Banker affiliate offices in the Caribbean for your real estate needs. ]]> BlackSwanBlog. ]]> RISMedia, "Below are some key highlights from the Coldwell Banker Real Estate study: Women may be inclined to make up their mind more quickly than men. -When asked how long it took before they knew their home was “right” for them, almost 70% of women had made up their mind the day they walked into the house, vs. 62% of men. Conversely, significantly more men needed two or more visits: (32% of men vs. 23% of women). Women would rather live closer to their extended family than to their job.-55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37% of men. A home’s security is a deal-breaker for both men and women. -64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51%). Couples say that no one “wears the pants in the relationship” in terms of major financial decisions.-When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70% of respondents living with their significant other said it’s actually mutual. -However, 23% think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26% vs. 20%, respectively). Men and women agree on how they would use a spare room, for the most part. When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses: -Bedroom: 25% -Office/Study: 15% -Family Room / Den: 11% However, men really do want a “Man Cave.”-Interestingly, out of the 8% who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge. In fact, four times as many men as women said they would use the extra space for recreation / entertainment." According to Patton, “These results further validate how critical it is for couples to recognize each other’s differences and work together, from picking a neighborhood to how to use a spare room,” she said. “Online tools and the expertise of a real estate professional can be particularly helpful for couples, especially if they work together step-by-step along the way.” Contact your local Coldwell Banker agent or office for expert real estate information. ]]> David Disick, well known American practitioner in the fractional vacation home marketplace and previous speaker at Europe’s largest fractional property conference, answers 150 questions which potential fractional real estate developers should consider when planning the development of a successful fractional ownership or private residence club vacation property. The questions, on which many fractional ownership consultants base their work and from which fee structures have been developed through his detailed knowledge and experience in the American fractional real estate sector, are available for free at FractionalLife.com Questions address the following topics: 1. The club's proposed fractional resort venue 2. Nature of the fractional club to be developed 3. Business Plan 4. Fractional Finance 5. Assembling the fractional development team 6. Status of permits 7. Fractional club structure and usage rights 8. Fractional legal and related issues 9. Fractional services and amenities to be included 10. Fractional Club Management and Homeowners Association Issues (HOA) 11. Fractional Affiliations to consider 12. Fractional Marketing considerations 13. Fractional sales considerations 14. Fractional sales and marketing management issues 15. Overall company management issues 16. Club management issues Obviously, the Q & As are extremely thorough and worth a read if you are considering developing a Fractional Ownership property.]]> www.GoFractional.org, has been designed for all those with an interest in this emerging market. Extremely successful in the US, fractional ownership is increasingly popular in Europe and over 90 properties are now available under fractional schemes in countries such as Portugal, Italy, the Canary Islands, France, Austria and the UK. With regular updates, factsheets, features and informative articles about the new and exciting developments not only in Europe but all around the world, this site is set to become a regular place to go to for all fractional property development news. (resource: GoTimeshare)]]> Island Connections recently wrote, "Owning abroad has never been easier. There’s a new way of buying a holiday home – fractional ownership. "It’s the latest and safest way of buying your escape to the sun as the asset, in this case the property is usually owned by a specially created company and you buy shares in that company. "This means that you can transfer or sell the shares without having to pay for costly changes in the title deeds and there are tax benefits. It also means that you have a full share in bricks and mortar. This is not timeshare. You have a part ownership of the title as opposed to just buying units of time. As your property increases in value, so do the shares and they can be sold or handed down over the generations just like any other property asset. "Depending on the resort the fractional shares vary from a thirteenth to a half share and individuals have the right to use the property at set times every year. They can also choose to swap the dates (if another owner agrees) or use some of their weeks to generate income by letting through a dedicated letting and management company who look after everything on your behalf. Dividing the ownership also means a division of the expenses of running and maintaining the property, so you have all the benefits of a top class resort at a fraction of the price." One caveat - be careful of the management behind the asset. If you own shares in a company but that company has a bad management, then you might be purchasing a problem. Your due diligence for fractional ownership through shares will be different than in a real estate transaction. Be aware the risks are not the same. ]]> Private Co-Ownership on the right side bar. For many people, the idea of owning a home in Turks & Caicos remains just a dream. People often worry they wouldn't use their home often enough to justify the investment or they don't want to be an absentee landlord. An intriguing new concept in real estate is changing all that. Fractional Ownership is rapidly growing in popularity as an alternative to sole ownership of vacation homes. Coldwell Banker Real Estate Turks & Caicos is pleased to introduce Private Co-Ownership in Turks & Caicos, an exclusive type of Fractional Ownership that not only provides great vacations, but also offers a sound investment. It is a personal and intimate alternative to traditional Fractional Ownership and other forms of "shared ownership."]]> RisMedia reports, "Real estate agents say they have never seen prices drop so precipitously when dealing with opulent, often empty high-end homes along the North Shore that cost a small fortune to maintain and keep secure. Though homes in the $400,000-to-$700,000 range have weathered the financial storm better than expected, the glut of eye-popping mega-mansions has owners competing for the attention of a select few." Nationally, the trend is the same. The number of people able to afford luxury homes, while always a small segment, has been cut dramatically through the drop in stock market and real estate values. Jumbo loans are harder than ever to get, with lenders requiring larger down payments and higher credit scores. Home transactions priced at $750,000 or more made up 4% to 5% of transactions before the recession, said Lawrence Yun, chief economist of the National Association of Realtors. Today, only 2% of housing transactions are taking place in the same upper-end price range, Yun said. “Many of the wealthier people have their wealth tied to the stock market,” he said. “Given that the stock market is down- even with the recent run-up- that has eaten into their financial resources.” This trend, and the woes of the sellers of luxury properties, brings good news to the fractional ownership market. The slice of buyers may be small, but owning a part of a luxury property is now affordable, if you can no longer purchase whole ownership. ]]> FractionalIndex.com is the first prominent and specifically low cost fractional ownership website dedicated to growing the fractional property sales and resales market. Specifically created to help drive sales of individual fractional properties and to develop an active fractional resale market which until now, has been absent from the market, Fractional Index acts as a sales lead generator and news source for the worldwide Fractional Properties, Private Residence Clubs and Condo Hotels markets. User friendly and with simple functionality, the website is designed to attract ‘fractional savvy’ buyers worldwide and make it easy for both developers and private owners to advertise their properties. Fractional Index provides a low cost solution to the question that so many fractional agents and developers need to answer prior to closing new sales: “is there a fractional resale market?” – the answer is a resounding “yes”, Fractional Index is here. (source: Fractional Life) ]]> Retreat at Sundance, in Utah, is promoting a "try before you buy" incentive. For a $15,000 deposit plus payment of normal monthly maintenance fees, qualified buyers may enjoy all the benefits of ownership in the home that a 1/8th share would afford for one full year. The Phillips Club, New York City's most esteemed PRC, is offering short-term stays for the first time, a variation of the "try before you buy" routine. California wine country's Ranch on Soda Rock is trying a "lease to own" concept. Qualified buyers would pay $100,000 up-front for a 1/10th share of the home, and then have up to three years to exercise their option payment. E3Escapes is offering short-term Stay Packages at their mansion in Cabo San Lucas at very special summer rates, and the incentive of a team sponsorship in a prestigious fishing tournament, held annually. The Las Olas Founders Club, in the Bahia Principe Riviera Maya Residences & Golf Resort just south of Cancun, Mexico, is selling whole ownership of its luxury casas and then helping buyers to fractionalize, market, and sell shares. These are just a few of the innovative ways developers are incentivising the fractional ownership market. Read more at Luxury Fractional Guide. ]]> Property-Abroad.com group said, "The growing market of fractional ownership should not be confused or even compared to timeshare. Fractional ownership is fast becoming popular with overseas buyers who are looking to share the risk and cost of owning an overseas property." Fractional Ownership is different to Timeshare in that you actually own part of the deeds of the property and not just an allotted time period. In addition, the resale value of fractional properties will grow with the value of of the property whereas timeshares tend to decrease. Fractional properties can be split anyway to suit buyers who very often are a group of family, friends or indeed investors. Prices vary depending on amount of share, location, exchange rate, and many variables. Fractional ownership is basically a means of owning and enjoying real estate (in our case), normally expensive collectively, and thus spreading the costs and risks of ownership. Fractional Ownership is definitely coming of age. ]]> Be a Real Estate Investor - 10 Important Secrets When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know: 1. Compare Property Values and Rents Financial statistics only go so far; the best measure of a property's market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need. 2. Be Careful - Tax Laws May Change Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor. 3. Specialize In Something You Know Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties. 4. Know The Costs Going In Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment. 5. Know Where Your Tenants Are Coming From If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposits at closing. 6. Assess The Tax Situation Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor. 7. Investigate Insurance Coverage If seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price. 8. Confirm Utility Costs Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent. 9. Consult Your Accountant Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. 10. Inspect Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment. ]]> PineandLakes.com) ]]> Why All-or-Nothing Isn't Always Best" at Motley Fool, stock advisors, David or Tom Gardner states, "I just heard about an idea that applies the same concept [as NetJets] to the housing market: fractional home ownership. That might conjure images of vacation time shares (which is yet another fractional ownership solution), where you don't own a whole vacation home, but instead get to share in the use of many. But this particular idea is rather different. "John O'Brien of Berkeley's Haas School of Business explained the concept in a recent article. He cited a hypothetical homebuyer who wants to buy a $300,000 home, but can only afford $240,000. Rather than stretching to get an unaffordable, risky mortgage -- the only option available in an all-or-nothing scenario -- the creative alternative involves getting an outside passive equity investor to buy a 20% interest in the home. This lets the homebuyer live in the home without having the full investment risk of falling home prices. It also creates a new market for interested real-estate investors. "The idea of fractional home ownership has been raised by Fed Chairman Ben Bernanke and other financial and economic thinkers. The concept tries to change the status quo, where we either rent or own our homes. Given how hard it is for many people to move from renting to owning without stretching their finances, the idea is worth pursuing." The concept of Fractional Ownership is becoming mainstream now, if widely-respected investment advisors like Motley Fool suggest it has merit. And in their scenario, it expands the concept past resort-2nd homeownership. ]]> article here.) "Les Milton, chairman of The Fractional Ownership Consultancy, says developers who see fractional as a magic wand to conjure up sales are heading for disappointment. 'If a property is un-saleable outright it is unlikely to be saleable on a fractional basis. Fractional ownership should be a lifestyle purchase. A property which is clearly unattractive, either because of its location, surroundings, or size will always be difficult to sell, even at a heavily discounted price. Fractional purchasers are buying into a dream and the developer needs to bear this in mind when he is planning the resort. Since there is no substance in the notion that fractional buyers are content to buy ‘bin-end’ deals, I don’t see any reason that developers should have any expectations of success.' "June Matthews of the Fractional Agents Network agrees: 'Fractional ownership is not a method for disposing of poor stock. Consideration must be given to the location, style and qualities of the development – fractional developments should be carefully selected on the basis of year-round usership with the correct facilities, infrastructure, high quality maintenance, property qualities and of course, location.'” Fractional Ownership will not sell a property otherwise priced incorrectly or in need of repairs, but it can sell a premium property in a good location which might otherwise be priced above whole ownership, in today's market. ]]> Examiner.com. ]]> www.newskys.co.uk For more information on UK and overseas properties and the market in general, please visit www.themovechannel.com To read the full press release, visit PR-Inside.com. ]]> Realtor.org) ]]> Wall Street Journal and New York Times. Attending the conference were 22 Brokers and Managers from many of the island countries of the Atlantic and Caribbean. Also in attendance was Jim Gillespie, President & CEO of Coldwell Banker Real Estate Corporation and Beth Makatura, VP & Director of International Services. The meeting was hosted by Coldwell Banker Real Estate St. Maarten & Coldwell Banker Caraibe. Check back often to our Coldwell Banker Island Affiliate sites and watch for the latest in technology to be available for your use. ]]> A Guide To Fractional Living. Read it here. Pages include Introduction, reasons for fractional ownership, private residence clubs, joining clubs, and information on fractional ownership of jets, boats, and more. It appears to be an excellent resource.]]> yours2share, Sophie Garrett, explains the philosophy behind yours2share which enables people to find like-minded partners to share property, boats, horses, aircraft, and any other valuable commodities through fractional ownership or fractional rental. Watch her YouTube video on Boating-Yatch.com. She understands the sense of community involved in sharing, and the need for economic and environmental flexibility in asset management for investors. It's an interesting new idea.]]> www.fractionalindex.com is the first prominent and specifically low cost fractional ownership website dedicated to the growing fractional property sales and resales market. Specifically created to help drive sales of individual fractional properties and to develop an active fractional resale market which until now, has been absent from the market, Fractional Index acts as a sales lead generator and news source for the worldwide Fractional Properties, Private Residence Clubs and Condo Hotels markets. Backed by the team from Fractional Life, Fractional Index provides a low cost solution to the question that so many fractional agents and developers need to answer prior to closing new sales: “Is there a fractional resale market?” The answer now is a “yes”, Fractional Index is here. Read more about the new site at PR-Inside. ]]> www.ownersperspective.com/fractionalpropertyguide/ Owners Perspective Magazine just started in January, 2009, and is committed to publicizing the shared ownership industry. Based in the UK, it soon will show up in European airports. According to the company press release, "Over the past few months, readers of Owners Perspective Magazine have favoured the articles relating to Fractional Ownership and have actively interacted with current advertisers for more information. The Fractional Property Guide, which resides within the main website, rather than a standalone website, is designed to harness the high traffic of the magazine to provide highly targeted and product educated, fresh purchase enquiries for fractional property developers." Take a look at their new web site and be ready for another way to advertise your fractional ownership property. (resource: PR-Inside)]]> Mission Beach Magazine in San Diego recently reported favorable on the concept, "Do you like the idea of owning a luxury vacation home in San Diego, but don’t want the burden and cost of repairs and upkeep? Do you love the services of a luxury hotel but dislike living out of your suitcase? You’re not alone. "A new breed of vacation home ownership, called “shared ownership,” (sometimes also known as vacation home partnership or fractional co-ownership) is becoming increasingly popular with busy families looking to maximize their family vacation time. "Shared Ownership differs greatly from old-style timeshares. The primary differences are that shared ownership offers: * Deeded property, with the same rights as any other real estate purchase * Equity appreciation and second home tax deduction * A longer amount of time on the property (6-8 weeks per year) * A luxury level of furnishings, services and amenities "Trading weeks is a great concept from the timeshare days that hasn’t been abandoned but instead greatly improved upon. With five or more weeks to enjoy, owners can choose to spend part of their time at a different property in another part of the country – or world. "Most fractional properties participate in an exchange program that gives owners the ability to reserve time with other properties that have a similar level of luxury and service.  Don’t feel like visiting your San Diego property in the summer?  Trade it for a week in Hawaii instead.  "As one owner put it, 'My vacation starts the moment I arrive. We head straight to the restaurant for a bite to eat. When we get back to our residence, our refrigerator is fully stocked, our clothes are unpacked and our surf boards have been pulled out of storage. There’s nothing left to do but have fun.'” Talk to your local Coldwell Banker agent about Fractional Ownership opportunities. It's the smart way in 2009 to own a luxury property. (Source: Mission Beach Magazine) ]]> Fractional Life Expo returns to Broadgate Event Venues in the heart of London. This year’s event will take place from Monday, 9/14 through Wednesday, 9/16 and is the largest and most diverse fractional ownership and asset-sharing exhibition in the world. Fractional Life explains in its press release, "With the fractional ownership concept benefiting from increased consumer awareness due to challenging luxury ‘whole ownership’ conditions, the event caters to the growing number of people who want to enjoy a lifestyle of luxury items and experiences - without the ties, responsibilities and capital outlay of a complete purchase." The show will play host to a number of different fractional ownership and asset-sharing “zones”: Property—houses, hotels, private residence and destination clubs; Motoring - classic vehicles and supercars; Sea - boats and yachts; Air - aircraft and jets; and Lifestyle - wines and spirits, sport, handbags and similar assets and investments. There will also be ‘fractional’ luxury objects on display. Read more at PR-Inside. ]]> Obelisk Investment Property recently issued a press release touting the merits of fractional ownership: "The idea of owning a luxury asset to use occasionally appeals or if your budget does not stretch the whole way, fractional ownership may be for you. For a fraction of the price of the whole, you can own part of the asset. For many, this investment vehicle offers the gateway to investment in luxury (including property investment), allowing those without seven-figure bank balances to enjoy high-end assets." Not surprisingly, companies around the world are selling, investing in, and investigating the benefits of Fractional Ownership. For a small part of the cost of the whole asset, investors purchase a part and can sell, donate or bequest this at any time. Since investors are direct owners of the asset, they also benefit from increases in the value of the asset should they decide to sell it. "While fractional ownership doesn’t suit everyone," says James Gonzalez, Market Analyst at Obelisk Investment Property, “it does mean that you can get a bite of the luxury cherry without paying the full price." James recommends choosing a fractional ownership investment very carefully: “You might not be buying 100% of the asset, but due diligence and research must still be absolutely 100%." Read the full press release at PR-Inside. ]]> RisMedia. Global Demographics 2009 (978-0-87420-123-9; Urban Land Institute, 2009) is available everywhere books are sold and through the Urban Land Institute at www.uli.org or by calling 1-800-321-5011. The price is $39.95 for ULI members and $59.95 for non-members. ]]> FractionalLuxuryLodging. From the company's press release, "Luxury Lodging & Exchange has launched a new website designed to feature and help facilitate the understanding and fulfillment of Fractional Ownership. Developed for easy navigation, this website showcases strategic partners and affiliate links, along with fresh incentives, articles, blogs, and news related to the 'shared ownership' industry. "The purpose of this site is to demonstrate why Fractional Ownership is a wise investment now, especially in this transitioning economy. And, why it is a viable option for potential buyers, who understand the economic advantages of owning vacation property while paying a fraction of the startup and recurring costs. This site provides instructional value, enabling a family to quickly learn about this industry, then choose luxurious home and vacation opportunities that are highlighted by on-site videos, pictorial tours, and detailed descriptions." Read the full release at PR Web. ]]> Presenting Anabui, Aruba’s First and Only Private Residence Club: Located at the heart of Tierra del Sol Resort, Spa & Country Club on Aruba’s northwest coast, Anabui is a collection of 20 fully furnished, fully-serviced residences comparable to multi-million dollar homes in every way, but one. Deeded fractional ownership at Anabui allows you to own your luxurious place in the sun without making a steep financial commitment to a full-time vacation home. As Aruba’s only master planned community, Tierra del Sol Resort, Spa and country Club offers over 600 acres (242 hectacres) of residential and recreational opportunity within a secure, gated community. In addition to fractional interests in Anabui Private Residence Club, Tierra del Sol Resort, Spa and Country Club offers a limited number of whole ownership options for those who wish to reside permanently in tropical Aruba or to have total access to your own vacation home with no reservations needed. Request information for the resort at Anabui.com and contact our Coldwell Banker agents for information on purchase of the fractional ownership. Welcome … Bon Bini … to Aruba and Anabui. ]]> American Chronicle.]]> FractionalLife.com recently ran a story on where the next wave of fractional ownership will break, and which property markets will benefit from an influx of fractional buyers. They state, "Because fractional ownership is predominantly sold as a lifestyle purchase rather than an investment, we won’t be seeing the speculative plunge into new markets which characterized the crazy, heady days of the overseas market before the recession came along." Nick Turner, of the Registry Collection, a high-end exchange network for fractional resorts, feels, "fractional ownership will grow in areas of high-end tourism footfall where there remains an undersupply of good quality product in prime locations...Areas that will struggle to develop and sell will be emerging markets, which have primarily been driven by the speculator and not the end user." Turner emphasized that the success of fractional resorts depends as much on the quality and breadth of facilities as location. “Onsite facilities which give that resort-style feel with the benefits of a second home are critical, therefore watch out for specialist fractional projects with appeal to specific buyers such as the PGA golf resorts, environmental resorts and spa resorts.” For more insight, read the whole article on Fractional Life.]]> Virgin Islands Daily News) ]]> RealEstateWeb.]]> http://www.carbontrust.co.uk/default.ct]]> 77 Great Estates.]]> London Times recently ran an article on "A guide to fractional ownership of overseas property." We tend to think of fractional ownership in terms of the United States and surrounds, but fractional ownership is very much a part of the real estate scene from Africa to England. Francesca Steele offers several points to consider, regardless of which country might offer the investment you are considering: 1) Seek legal advice. “There is no industry standard for what fractional ownership actually means, so make sure you know exactly what you’re purchasing,” says Piers Brown, founder of the website fractionallife.com. 2) Be clear about how the allocation of weeks will work. What if the share is cheaper but you can’t use it in the summer months or during half-term? Many fractionally owned properties have a rota for popular periods. 3) Loans for fractional schemes are scarce — owners usually buy outright, although it is possible to remortgage your other real estate. Make sure your mortgage debt is below 75 per cent of your home’s value. 4) Expect to pay extra for the maintenance fee. Treatments at facilities such as spas will not usually be included. 5) Be realistic about resale value. The evidence so far suggests that fractionally owned properties keep pace with the rest of the market, but the concept is still fairly new and a bit of a gamble. Read the rest of the article at the Property section of TimesOnline. ]]> Fractional Life offers good explanations of the differences between Destination Clubs and Private Residence Clubs, for buyers considering fractional ownership of a 2nd home. Destination Clubs are based around members sharing a portfolio of fully-furnished, multi-bedroom residences around the world. Members usually pay an upfront deposit and an annual fee for exclusive access to a multitude of properties which can be a mixture of holiday beach, ski and city residences. While there are several variations, the basic choice is between equity and non-equity clubs. The latter operates in a similar fashion to the membership model of a country club, while the equity model borrows a page from the PRC formula and applies it to the value of an overall property portfolio rather than a single residence. Private Residence Clubs generally occupy the top tier of the fractional property marketplace with the highest value properties, which are staffed and serviced to a 'five star plus' standard with concierge service, housekeepers etc. A PRC is a fractional, vacation real estate development owned by members with fractions broadly ranging from 4 to 12 owners per residence. Through owning a fraction, each party will hold a title deed so can benefit from any increase in real estate values - something not unlikely even in depressed markets, as PRCs are based in the most desirable locations around the world. Although strictly speaking a PRC is part ownership of a single property, companies frequently offer members access to other properties within the company portfolio or operated by selected affiliates. Think through your purpose in purchasing a 2nd home and what appreciation/real estate value you want to achieve. Then investigate both Destination and Private Residence Clubs. Our Caribbean Islands offer both - contact a Coldwell Banker agent to discuss our properties. (resource: Fractional Life) ]]> Fractional Life and visit CondoShips if you have an interest. ]]> NuWireInvestor, summarizes the basics of investing in the 193 countries of the world into 6 topics. We only introduce them here, and suggest you read the entire article, if you are considering a real estate investment in the Caribbean. 1. International real estate investment can offer excellent diversification of assets: Diversification effectively distributes risk among multiple markets and can optimize potential for return. 2. Currency exchange rates can enhance or impede profit margins:International real estate investment essentially combines property two types of assets: property and foreign currency. The value of a foreign currency can profoundly affect the amount of return made on an investment, as it increases or decreases relative to the U.S. dollar. 3. Legal technicalities (or lack thereof) may increase risk: Navigating the legal landscape of a foreign real estate market can be daunting, especially in developing countries that have only recently opened their property markets to limited foreign investment. 4. Foreign investment opportunities abound in Latin America: Latin American real estate markets can be especially favorable, offering affordable property prices, government initiatives meant to attract foreign capital and exotic, beautiful landscapes. 5. Working with international real estate professionals is an important first step: Embarking on one’s own in unfamiliar territory can be a dangerous move. Contact our local Coldwell Banker agents - they know the market and real estate trends. 6. The US real estate market is not necessarily a "bad" place to invest: The state of the U.S. housing market might be unnerving for many investors, but those who follow the traditional “buy low, sell high” mantra might see opportunity where others see cause for concern. International real estate investing carries risk but we have professionals at Coldwell Banker who can help you understand the risk and minimize it for your situation. Give us a call.]]> The Reefs Club will be the latest fractional ownership development to launch in Bermuda when it opens its doors this summer. The new residence club will offer 19 apartments, including eight three-bedroom units and 11 two-bedroom units, with all of the rooms offering a balcony, sea view, and private hot tubs on the verandas. The residences start at $350,000 for one-tenth ownership of a two-bedroom and $410,000 for a three-bedroom unit. David Dodwell, president of The Reefs, said they are only about 1/4 full so far. But, he added, "this is about selling a lifestyle and selling the experience and The Reefs to the customers." The club's owners can expect to be welcomed on arrival at their very own private reception and concierge area before being escorted to their residences. They can also take advantage of the owners' lounge, an exclusive club room complete with a bar, pool table and television at their disposal, as well as a private state-of-the-art fitness centre. Other benefits range from an infinity-edge pool, rooftop putting green with Atlantic views, while The Reefs' three restaurants and new La Serena Spa with eight treatment rooms, also due to open at the end of June, will be shared by both the hotel and residence club, with owners able to buy restaurant meal plans to enjoy during their visits. A new laundry room will also be completed for the hotel soon. The residences will be furnished in contemporary Bermudian style and will feature amenities, such as flat screen televisions, spa bathrooms and gourmet kitchens. Dodwell adds, "What we create here are memories, so the guest doesn't leave with much that is tangible, but what we hope is they leave with a good memory." For more information, contact your local Coldwell Banker agent, and visit The Reefs online. (resource: Royal Gazette) ]]> IndependentCoUK. Many of the Caribbean Islands offer Fractional Ownership opportunities. Check with your local Realtor for ideas. ]]> LA Times and MSNBC) ]]> Fractional Life. The worldwide economic situation seems to favor fractional, rather than whole, ownership of luxury properties. Contact your local Coldwell Banker office to discuss opportunities. ]]> RealEstateChannel. ]]> Wealth Bulletindiscusses "Cut-Price Consumption." They argue that the changing economic times - reflected in focus on price and value in the luxury goods market - is also apparent in the growing popularity of fractional ownership, which "which allows consumers to satisfy their desire for luxury at a fraction of the cost. This type of ownership offers people a new way to enjoy luxury, giving access to luxury without the guilt, clutter or commitment of whole ownership. The business jet industry is a prime example. "Alexis Graber, founder of jet chartering company Avolus, estimates that more than 20% of the world’s private jets are currently up for sale. 'Before the recession you had 30 buyers for one jet. Now there are 30 jets for one buyer,' he says. He predicts that fractional schemes will double their share of the market to account for a fifth of all jets within a decade." Fractional ownership in real estate should also see this expotential growth. (resource: Wealth Bulletin)]]> Hospitality Net, 296 attendees, including bankers, investors, developers, hoteliers and tourism officials, expressed optimism last week as they gathered in Bermuda for the annual Caribbean Hotel & Tourism Investment Conference (CHTIC). “The mood was surprisingly optimistic despite the dire economic situation that many destinations, hotels and other companies find themselves in at this time,” said Enrique De Marchena Kaluche, president of CHTA. Many of the speakers and general delegates expressed their overall support for the Caribbean as a region that continues to have potential for growth and expansion. The Hon. Ewart Brown, Premier of Bermuda, keynoted the conference and lauded the timeshare industry, in particular fractional resort complexes, for stimulating the Bermudian tourism economy. He talked about the “significant progress” in the area of mixed-use resorts, in particular fractional timeshare resorts. “Increasingly more and more of our visitors choose fractional units. “We believe fractional units also play an important part in stimulating our overall tourism product. A fractional unit owner will come to Bermuda at least once a year in some cases and more than once a year in most cases. The thinking here is simple: if I paid for it, I'm going to use it. And when a fractional owner can not use her unit, she is more likely to send a friend or family member. “We think fractional units also increase the likelihood of visits during the cooler months when our tourism business is at its softest. More importantly perhaps, fractional units help us keep more of the tourism workforce employed year-round – an especially critical point in times like these. “Overall, we've seen our annual air visitor spending on-island skyrocket more than $100 million between 2005 and 2007—from $341 million to $444 million. We think the increased number of fractional owners played a role in that increase. “So it should be no surprise that our recently opened hotels have significant fractional ownership components. Additionally, the Park Hyatt in St. George and the Reef's Hotel – both currently under expansion – also have fractional ownership in their business models." Read more about the conference at Hospitality Net. ]]> Home Discount News published a very informative and easy-to-understand YouTube video made for HouseKingMagazine entitled, "Fractional Ownership" and subtitled, "The core difference from time shares is that the purchase entails deeded real estate property." Here is the link: http://www.homediscountnews.com/discount-home-video/fractional-ownership/ Take the time to watch - you'll probably learn something about Fractional Ownership.]]> Maintenance Repair and see if fractional ownership would be right for you, if you are a Baby Boomer or soon to be one. ]]> Fractional Life and Special Report Publishing are pleased to announce they are producing a 16-page full colour supplement covering Fractional Ownership and Asset Sharing to be published May 24 in the Sunday Telegraph newspaper. A Guide to Fractional Ownership will also be available at the Fractional Life Expo in September, 2009 and promoted online by Telegraph.Co.UK and Fractional Life. The supplement will be written by Aaron Weddell, Fractional Life Editor, and David Nicholson, a London-based business and property writer who has contributed to both the Financial Times and the Wall Street Journal. He has also edited Global Property News. (source: PR-Inside.com) ]]> The Abaco Club on Winding Bay, A Ritz-Carlton Managed Club, announced the second series of Ritz-Carlton Club fractional ownership residences. This secluded residential development and sporting retreat known for golf, beach and boating pursuits, now offers five fractionally-owned cliff cottages to members of the Ritz-Carlton Club, as reported by the RealEstateChannel. According to the press release, "The opening of the cottages marks the second phase for the private residence club, with the initial phase having opened last November. The new cliff cottages are nestled into the side of a tropical limestone ridge surrounded by lush landscaping and feature stunning views of Winding Bay. With this addition, RCC members now have 10 fractional residences to explore, each with a view of the bay or the first fairway of the Scottish-style links golf course designed by Donald Steel and Tom Mackenzie. The cliff cottages include two and three-bedroom floor plans, ranging in size from 1,656 square feet of air-conditioned space to 2,381 square feet. "The Abaco Club is a 534-acre private resort-style retreat that features the world's first Scottish-style links golf course in the tropics, and clubhouse, dining, spa, tennis courts, and fitness center amenities on Greater Abaco." Read more in the article on RealEstateChannel. ]]> http://wwww.fractionalsummit.com. You still have time to attend. (source: PRLeap.com)]]> Real Estate Information. ]]> RealEstateChannel. ]]> Great Homes and Destinations. ]]> New York Times), recently wrote an analysis of the partial ownership model, as seen from a developer's standpoint. (Dr. Kilpatrick is a widely-published author and speaker on complex real estate topics.) Kilpatrick's main premise is that "Vacation or second-home partial ownership makes great sense in very high amenity locations, such as ski-slopes or high-demand beaches. However, the model certainly doesn't work well in other situations." He cites as examples Myrtle Beach, SC - loaded with hotel rooms and good beaches, but appealing to the motor-home crowd and short investments like one week ownership - and Whistler, in British Columbia. Whistler, the site of the next Winter Olympics, sells more in increments of 5-10 weeks/year and caters to the more affluent buyer. He continues, "Thus, Whistler and Myrtle Beach are clearly very differentiated markets. "As Spain and other countries get into the time-share or fractional ownership business, they will find that the model does not work with simplistic solutions...Indeed, the most successful fractional-ownership developers in the U.S. and Canada are affiliated with the big hotel chains, and the properties themselves are operated quite like hotels." And yes, that is what we have seen develop so far in the U.S. and Caribbean fractional ownership market. But as the economy shifts worldwide, we may see a mutation in the fractional focus as well. The trends in the next few years will be interesting to watch. ]]> Luxury Fractional Guide has confirmed that Wyndham Grand Bay Waterford in Grand Cayman, Cayman Islands has affiliated with The Registry Collection® Exchange Program, the world’s largest luxury exchange program. The Waterford is a private club comprised of luxurious villas, grand penthouses and an elegant “Great House.” It is located in Crystal Harbour Safe Haven, overlooking the magnificent North Sound and Sting Ray City, adjacent to the North Sound Championship golf course. The resort will be comprised of 44 two- and three-bedroom oceanfront villas and three luxury penthouses. Read all about the new program at LuxuryFractionalGuide.]]> Luxury Fractional Guide, sharing his perspective on why Fractional Ownership is a great investment, and the only way to own a vacation home. He begins, "People with a wholly-owned second home on the beach will tell you that there is only one smart way to own an ocean front vacation home: DON’T. Times have changed. "Everyone seems to be tightening their collective belts. We are finally talking about the things that are critical yet were ignored as long as events would allow. It seems that choices are limited now – we are stuck with the economy, the excesses, the environment, and losses of revenue – whether from the stock market losses or lack of work production – and we are all in this big drifting arc together." This is an excellent article. Read the full story at Luxury Fractional Guide.]]> Fractional Life, but didn't realize how popular the online site has become. Here are some recent statistics from their monthly newsletter: 1) The most popular sections of the website are the Top 10 Fractional Focus and Newsletter Sign Up 2) The website is on target to hit 1,000,000 hits+ for the month of March alone, our best ever. 3) Fabrizio Harper’s great Grandfather was Chairman of Queens Park Rangers Football Club 4) Aaron Weddell will be test driving the new Nissan 370Z in France this week 5) Ruan Geyser used to sell Paintball experiences 6) Piers Brown’s father raced works Ford GT 40’s at the 24 hours of Le Mans in the 1960’s. These are tongue-in-cheek, but the site is loaded with great information. Take a look: FractionalLife.com for the latest fractional ownership and asset-sharing opportunities. No matter what your budget, there's something for you there and the beauty of it is that you decide. Fractional Life will help you make informed decisions to allow you to enjoy your lifestyle when you want it and without the usual financial or time constraints. ]]> Luxury Lifestyle Investments (Above numbers may not be current, but are used for example only. Check with your local Coldwell Banker Affiliate for the area you are considering.)]]> RealEstate Channel.]]> FractionalHomesIntl.com. Read the entire news release at Send2Press. ]]> While Fractional Villas coined the term "Green Ownership," more and more fractional ownership opportunities are marketing the "green" aspect of joint ownership. The company explains Green Ownership through 4 concepts. 1. "Through co-ownership of second homes, all Fractional Villas® reduce the carbon footprint of housing on the environment and the community. Green Ownership® reduces the demand for more living units, allowing for shared usage of second homes that are otherwise owned by only one family. This shared use better utilizes existing resources and inventory of homes, to accommodate the needs of many families, thereby conserving land use, while reducing the need for new construction and helping to eliminate the need for further deforestation. Green Ownership® provides for better utilization of the existing infrastructure, without creating any additional burden upon local schools, roadways, sewer, or water systems, beyond what the home was already permitted for. 2. "Green Ownership® allows for better utilization of existing second homes, assuring "warm pillows" (versus cold-unused homes) and creating more frequent use of each property, for longer stays, thereby helping to stabilize local employment needs, with less peaks and valleys to workforce scheduling. This stabilization, in turn, enhances the local economy and wage base. 3. "With Green Ownership® second homes are made more affordable to more families, sharing the cost of private home ownership. The market for home sales is expanded with Green Ownership®, creating a more liquid market for area home sales, thereby helping to support the underlying real estate market values. 4. "Due to the significant maintenance budget shared by the co-owners, each Green Ownership® home is professionally maintained, with weekly property inspections, assuring no deferred maintenance. Green Ownership® homes use only organic and ecologically friendly cleaning products and recyclable consumables. Green Ownership® homes always exhibit true pride of ownership to the community." Contact Fractional Villas for information on Green Ownership and their worldwide properties. ]]> their blog and visit Luxury Fractional Exchanges. Fractional Ownership definitely is responding to the worldwide economic situation and offering owners choices in investments not found in whole ownership scenarios.]]> The Fractional Collection, launched today. According to its press release, the site creates the industry's foremost online platform, enabling industry professionals such as developers, contractors, hotel executives, luxury goods and services providers and others in the category to access a coveted demographic in an elegant, high-concept environment. Site features include a Showcase, where premium fractional real estate from around the globe is profiled; a Glossary, which educates high-end consumers and allows them to better navigate the world of fractionals; and a Marketplace, where the amenities of the luxury lifestyle are highlighted in an environment designed to initiate transactions. The website also features a companion blog which not only provides insights and information on the latest developments in fractional real estate, jets, yachts and cars, but profiles the best and brightest in the industry. "FractionalCollection.com has been designed from the ground up as a unique hybrid that not only is a consummate industry marketplace to advertise fractional assets, but is a nexus for our entire community, a place where consumers can learn, inquire and begin the acquisition process," said Mel Grant, President and CEO. Real the full press release at PRWeb.]]> Property Wire this week gave good news for 2nd home markets around the world, including the Caribbean. "'Bargain property prices in many countries are beginning to tempt buyers looking for holiday homes,' industry professionals report. "'Real estate price drops are also making the pricier and more sought-after destinations more affordable,' they claim, especially top markets like Verbier in Switzerland, the French Riviera, Tuscany in Italy and the Caribbean. "'There are more properties coming onto the market in top destinations than we have seen for a very long time. There are good deals to be found,' said Alexander Kraft, CEO of Sotheby's International Realty in France." Lucy Russell, managing director of Quintessentially Estates, said about our area, "We have seen houses in the Caribbean drop by half a million dollars, giving the buyer a good rate of return." As in the single family home market, supply and demand control the sales, and if sellers can't or don't want to hold their 2nd homes, they will reduce the price and give buyers more options. Read the whole article at Property Wire. ]]> Auberge Resorts, an owner and operator of high-end vacation properties around the world, announced it will manage Pond Bay, the fractional ownership and spa project under construction at Chocolate Hole. Auberge’s other properties include Napa Valley’s Auberge du Soleil and Calistoga Ranch, the Inn at Palmetto Bluff in South Carolina, and Encantado in Santa Fe. The Mill Valley, California-based company said the St. John venture will open in December. Besides 50 three- and four-bedroom cottages and hillside residences, Auberge said that Pond Bay will offer “a full range of personal services, from pre-arrival shopping, concierge and 24-hour room service, to wine storage, babysitting and shuttle service to nearby Cruz Bay, the social center of St. John.” Bob Emmett, co-founder, said, “Ownership at Pond Bay will be in deeded one-tenth fractional interests, with each Owner receiving four weeks of guaranteed use plus additional space-available use annually. Pre-opening prices begin at $315,000." The five-week partial ownership is ideal for people looking for a second home, without all the hassles of home ownership, explained Bill Orwig, Pond Bay Club’s director of sales. “It’s a good interim step for people interested in second home ownership,” Orwig said. “It’s a real estate purchase, so it can be willed or sold. But there are none of the hassles of owning a second home.” Like its sister property Isle de France on St. Barth, Pond Bay Club will include all top-of-the-line amenities, but the planned on site spa might be the most exciting. The 16,000-square-foot ESPA will include relaxation rooms, coral steam rooms and a full compliment of holistic and therapeutic services. A main pool overlooks the beach, surrounded by spa and clubhouse villas and beachfront cottages. Pond cottages and hillside villas are also tucked away on the property. None of 50 three-bedroom villas or cottages will be more than two stories and the entire site is designed for the upmost in privacy. (Resources: News of St John with video and Luxury Fractional Guide)]]> Portland Examiner quotes Dick Ragatz, the "father" of fractional ownership awareness, as he quantifies the differences between timeshare and fractional ownership. As Ragatz says, “They are both forms of shared ownership, but the way each one is used, and the profile of the buyer is different.” He feels the typical timeshare ownership is one or two weeks, and the typical fractional ownership is 4-12 weeks per year. Timeshare units are usually smaller than fractional accommodations. Timeshare might be a studio, a one bedroom or a two bedroom. They usually range from 700 to 1500 square feet. Fractionals are typically two or three bedrooms and range from 1,700 to 3,000 square feet. The timeshare owner would otherwise be staying in hotels and motels, or not traveling in a given year. Timeshare is a way for that owner to prepay for accommodations, in most cases getting a lot more space for less money than they would otherwise have. The fractional owner would be buying a second vacation home. The value proposition, according to Ragatz, is paying only for the time they are going to use, and getting a high level of service at the same time. Most vacation homes are used 5 weeks per year or less. Many of the fractional resorts are “mixed use” properties, sharing facilities with hotels. This allows the fractional owner to enjoy benefits of room service, concierge and others that we come to expect from luxury hotels. For information on the conference March 9-11, visit Ragatz Associates. Read the whole article on Ragatz, and the references to a longer USA Today story, at the Portland Examiner. ]]> Golf Review) ]]> According to a press release just issued, the Reefs Club, adjacent to the popular Reefs hotel, private club of just 19 luxurious, fully-furnished two- and three-bedroom beachfront residences, will open in July. The Reefs Club is offered for sale on an affordable fractional ownership basis. For a limited time until the residences are sold, a few will be available for a one-time-only vacation rental. "These are truly magnificent Bermuda beachfront residences with spectacular ocean and sunset views," says David Dodwell, majority owner of The Reefs. "So this limited time rental offer represents an exceptional opportunity for a family to live the Bermuda lifestyle. Once the residences are sold rental options will disappear and only owners and their guests will be able to vacation at The Club." Everyone who stays at The Club will enjoy beachfront lodging in a private enclave with all of the amenities and services of Bermuda's best hotel. All residences provide unobstructed ocean vistas seen through dramatic walls of windows. The Reefs Club combines modern luxury with classic Bermudian style with elegantly appointed interiors and private verandas. The Reefs Club is just steps away from the hotel's three gourmet restaurants, new spa, secluded pink sand beach and snorkeling, and convenient to nearby world-class diving. Contact any Coldwell Banker Island Affiliate Agent for information. Read the full press release at PRWeb TheReefs Club Bermuda.]]> Wyndham Grand Bay Waterford Cayman Islands - Grand Camanian Turks and Caicos - Reef Residence Contact a Coldwell Banker Realtor on Cayman Islands or Turks and Caicos for more information.]]> Luxury Fractional Guide and consultant, wrote in January, 2009 in his blog, Fractional Realestate News, "One of the biggest issues impacting fractional sales in this market is the lack of both developer and consumer financing. With the economic downturn that we’ve experienced in the past year, financing is near impossible to get right now. "Many of the larger, branded companies are not feeling this impact because they have their own in-house financing. Smaller resorts private developers are more and more local lenders issuing fractional financing." He predicts, "The only thing that’s holding anyone back right now from funding consumers is that the lenders still aren’t confident that they understand the product. I predict that not only one, but three or more big companies will come into this marketplace and provide funding." Back to the question we've been discussing for a couple of weeks - should you purchase Fractional Ownership now? Potvin has a very bullish take on the future market, "We are just on the cusp of public knowledge and awareness of this product. With the recent inauguration, a new president in office, and new policies taking place, in the next few months, we’re going to see everyone relax and come back to a regular way of doing business in America. Buying and selling real estate will be a part of it, and financing will come back." Don't miss this ground-floor opportunity. Contact a Coldwell Banker Caribbean Realtor for ideas on how to purchase a home through Fractional Ownership. ]]> Vacation Finance, a 2nd home lender: 888.LOAN.466 (562.6466), 248.816.7245, info@vacation-finance.com, works to tailor-make mortgages for specific borrowers' needs and goals. Their CEO, Bob Waun, wrote in November (as published in Fractional Life), "The real estate slow down (stop) is global. No market has been untouched...when banks are being faced with so many loan options to choose from and regulators demanding safety, it is impossible to expect that they will take any risk on a fractional loan, that is relatively less understood, and completely illiquid for the next 30 years - just for a .25% - .5% more yield. So, without financing, how do you sell fractional shares in anything? You don’t." He explains that developers and large resort corporations are now financing their own products. More and more destination resorts advertise in-house financing. Waun continues, "Vacation Finance is adjusting our business model to focus on helping the best developers - around the world - to evolve to have an in-house financing program, and at your control, not dependent on banks. We are working with developers to create secondary market compliant, yet consumer friendly and streamlined loan offerings with highly engineered terms." Unless you have a solid arrangement with your bank, as a Fractional Ownership Buyer, you may want to look for investment opportunities that have established in-house financing packages. More on this subject in our next post.]]> Fractional ownership re-emerges as a growing popular form of overseas property investment Fractional ownership schemes are regarded by many as one of the main avenue for overseas property investors in 2009. Since the credit-crunch became a severe global problem it has became incredibly difficult for most people to obtain finance for an overseas property investment. Fractional ownership allows a number of potential investors to pool their resources, making the amount of finance they need to find individually smaller and therefore easier to obtain. This is making overseas property investments possible where they otherwise might not be. Visit Property Abroad for ideas on international investments.]]> Fractional Ownership Opportunities in TCI Coldwell Banker agents work with Elite Destination Homes, which has a number of fractional properties around the world - including TCI, Cabo, New York, Paris, and more. Visit the page on our Coldwell Banker web site for Fractional Ownership, and fill out a short questionnaire. Coldwell Banker doesn't handle the sales process but would be involved with any potential physical showings. Elite Destination Homes sold several homes some years ago, and they have one home under construction that we / they are offering in fractional ownership of 5 shares at around $700,000 per share. Contact Coldwell Banker Turks & Caicos for more information about resales of the existing properties, or the new property under construction. ]]> From SherpaReport comes news of a new Ritz-Carlton private residence club in the Bahamas, on Great Abaco Island, available for first phase occupancy December, 2008. The Abaco Club on Winding Bay will offer 16 homes in a secluded development with more than 2 miles of beaches, a full-service spa, and all the expected activities of a luxury resort. Great Abaco Island is the 2nd largest island in the Bahamas, a premier water sports and golfing destination. Owners will be able to choose between Cabanas (570 sq ft), 2-3 bedroom cliff-side cottages (1,656 - 2,385 sq ft), 4-bedroom fairway villas (2,800 sq ft), and 3-bedroom beachfront homes (2,250 sq ft). The club's fractional ownership is a points-based system with 3 tiers of membership, giving buyers a choice of length of stay and the type of property. For more information, visit SherpaReport, Ritz-Carlton Abaco. Contact an associate with Coldwell Banker for sales details. ]]> Tierra del Sol, Aruba's Premiere Master Planned Golf Resort Community, located on Aruba's Northwest rugged and picturesque tip, is a private and serene 600-acre community of the highest standard, offering an exclusive and unique lifestyle with residences, amenities and full services. Homeowners and vacationers experience world-class amenities, including fine and casual dining, a full service spa, fitness and full care beauty salon, lighted tennis complex and unlimited greens at a championship golf course, displaying its own challenging version of Robert Trent Jones II. Experience the luxurious service and hospitality of belonging to this outstanding private club. The tranquil setting provides a gracious lifestyle amid some of the most beautiful views on the island. Custom homes, villas, casitas and home sites accommodate a wide variety of expectations for your personal lifestyle. Anabui is Aruba's first and only private residence club. Anabui is a collection of 20 fully furnished, fully-serviced 2,479 sq ft residences comparable to multi-million dollar homes in every way, but one: deeded fractional ownership allows you to own your luxurious place in the sun without making a steep financial commitment to a full-time vacation home. Visit the Anabui web site for more details. Contact our Aruba Coldwell Banker office if you would like sales information. ]]> Tailored Home, a UK site for property owners worldwide, recently posted an article titled "Why Fractional Ownership is Proving Profitable." Read their slant: Property sales might be down, but one sector of the market is growing. "THERE’S always a catch with holding onto cash. For those lucky enough to be holding on to savings in 2009, the dilemma is a unique one: where to put money when the banks look exposed and there is little or no value in interest rates. The stock market is a minefield of risk and a second home can be a burdensome, costly hassle. But there is an investment growing in popularity that may represent a genuine alternative. Fractional ownership is an arrangement entered into by individuals who want to share both the risks and benefits of property ownership, most typically by purchasing a holiday home. Don't Confuse with Timeshare "Buyers actually purchase a share in the bricks, mortar and land. And it is a global phenomenon. Northcourse Ltd, one of the largest fractional consultancies, revealed that in 2007 the industry achieved record sales volumes of US$1.98bn, a rise of 20 percent on 2006, in the United States, Canada and the Caribbean. The market is gaining popularity too in Europe, and is estimated to be worth $1.2bn in the Middle East. Supporters claims its success is due to two key factors. The perception among investors that there is still value in real estate, and the added benefits of not going it alone. Buyers joining up with 10 other people own 1/10 of the property, 1/10 of the maintenance and taxes and 1/10 of the amount of holiday time and 1/10 of the investment potential on their cash. Most importantly they only get 1/10 of any problems because everyone shares the duties of caring and securing the place or employing a managing agent." Read the whole article at Tailored Home. Their rationale certainly makes fractional ownership look feasible in this market.]]> HotelsMag, headlined "Credit Crisis Cripples Vacation Ownership," mentioned that even in October they boasted "Vacation Ownership Defies the Downturn." They now are pessimistic for the industry, with some caveats. Larry Shulman, Sr VP for Hyatt Vacation Ownership, said "The higher-end guy is sitting on his hands in all aspects of his life.” But the article continues with a discussion of shifting markets, not closed markets. "Many vacation ownership companies are beginning to observe a definite trading-down effect, as would-be whole-ownership buyers are considering fractional as a more palatable purchase option, while the former fractional demographic is taking another look at timeshare." Many projects have been cancelled worldwide, and the industry predicts few starts for this year. Greg Doman, Sr VP for Fairmont's residential development, explained, "Not a lot of projects have been cancelled, but a lot of projects have been deferred—more so in Europe and the Caribbean, Central America and Mexico—but Asia is continuing to hold up." Does this mean you - as a potential Fractional buyer - should dig in and wait for a few years? What it means is opportunity - weigh your options, choose the best, and then be confident you should have negotiating power because these resorts and properties want Buyers! Read the whole article on HotelsMag. Next post we'll look at another view - Why Fractional Ownership is Proving Profitable - and why you shouldn't hold on to cash. ]]> Elite Destination Homes is one of the prestigious worldwide companies offering fractional ownership opportunities. Bill Bisanz, CEO & Founder, continues to be very bullish that now is the time to purchase ownership in a 2nd home. He explains, "in spite of highly publicized tough economic headwinds, there are some smart vacation home options that have weathered the storm. Our model of exclusive fractional ownership is centered on owning a single home with a very small, private group of like-minded owners." Most of you readers are familiar with Dr. Richard Ragatz, probably the most widely-quoted Fractional Ownership expert. Bisanz mentions a recent WorldPress article citing Dr. Ragatz, "The luxury fractional segment of the vacation home market will be the first to rebound from the current real estate morass. The fundamentals of the vacation home market have changed. The days of buying a $3 million house on the beach or at a ski resort, with the expectation of 20% annual appreciation, are gone for the foreseeable future." No longer will owners accept a property that sits vacant most of the year, or doesn't bring them solid value for the time in use. In the past, they might justify the high cost and low utilization on a higher expected re-sale price. But in reading economic news on any given day in early 2009, this certainly does not seem a reasonable assumption in the next few years. Elite Destination Homes is somewhat unusual in that they offer built-in financing. Bisanz states, "We organize and place financing on many of the properties. Individual owners benefit through the partnership entity, and do not have to qualify separately for a mortgage, making ownership that much more accessible." And, of course, rates and financing options are the lowest we've seen in a generation. All these factors add up to a window of opportunity for you, if you are thinking of acquiring fractional ownership in real estate. ]]> Timeshares Daily, "the fractional ownership or timeshare vacation home market will be one of the first industries to recover from the recession. "History tells us that despite a sharp real estate downturn in 2007, the industry managed to recover strongly. Many attribute its strong recovery rate to the nature of the industry. Unlike vacation homes, which have high-costs and low-utility, timeshares offer owners the comfort of buying just what they need." To read the whole article, visit Timeshares Daily. ]]> World Renowned Fractional Industry Expert Dr Richard Ragatz Confirmed Speaker at Fractional Summit 2009, Europe’s Largest Fractional Ownership Property Conference. Fractional Life is delighted to announce one of the world’s most renowned fractional ownership authorities, Dr Richard Ragatz will be speaking at Fractional Summit 2009, http://www.fractionalsummit.com 23-24 April, Hilton Metropole, London. Dr Richard Ragatz, President of Ragatz Associates, has exemplary knowledge of the fractional ownership marketplace and has achieved international recognition as the leading feasibility analyst and market researcher in the resort real estate industry. He has been involved in more than 2,000 studies in virtually every state and over 70 countries. Clients include most major developers and lenders in the resort industry. With fractional property promising to be one of the highlights in an otherwise dire outlook for whole ownership in 2009, conference attendees will learn how the US fractional marketplace has grown to a 2.3 billion dollar industry and predictions as to what level the worldwide fractional property marketplace can grow. Dr Richard Ragatz, recently commented that ““The financial crisis has affected every part of the real estate market, but I believe, in the long term, recent events will enhance the attractiveness of the high-end fractional products as compared to whole ownership.” Piers Brown, Founder of Fractional Life, said “Richard’s experience in the marketplace is exemplary and we’re delighted he will be sharing his valuable knowledge at Fractional Summit 2009. The heavyweight speaker and sponsor list makes the conference a ‘must attend’ for operators already in the marketplace or those looking to find out more about fractional property ownership. We look forward to welcoming both speakers and delegates from around the globe.” ]]> Fractional Life, Wyndham Hotels has just announced a Fractional Ownership opportunity on Grand Cayman. The 170-room Ramada Grand Caymanian Beach Club and Resort is adjacent to the North Sounds Club golf course on the waters of the Grand Cayman North Sound Lagoon. Other amenities include an on-site restaurant, lighted tennis court, beach volleyball, freshwater pool, hot tubs, and water activities such as scuba diving and deep sea fishing. There will be studio, 1 and 2-bedroom suites with full kitchen and laundry facilities in-suite. For additional information visit www.caribbeanresidenceclubs.com and read the full announcement here in Fractional Life.]]> Exchange Weeks and Travel the World Trading weeks is a great concept from the timeshare days that hasn’t been abandoned but instead greatly improved upon with Fractional Ownership. With four or more weeks to enjoy, owners can choose to spend part of their time at a different property in another part of the country — or the world. Most fractional properties participate in an exchange program that gives owners the ability to reserve time with other properties that have a similar level of luxury and service. Though getting the location you want isn’t always easy (planning ahead is essential), this flexibility is one of the most exciting aspects of fractional ownership. No More Living Out of a Suitcase In the past those who chose to vacation at resorts — because of the services and activities they provided to their family — sacrificed some comfort in a relatively cramped hotel room. A great feature of most fractional properties is the spaciousness of the residences. With fully-equipped kitchens, large closets and lockers for year-round storage of sports equipment, you truly have all the comforts of home. Most residences have 2-4 bedrooms and an equal number of baths, so there is plenty of room for family, friends or clients. Many owners purchase more than one fraction to gain even more space and privacy — and time. Service Sets Fractionals Apart Personal service is an area where fractional properties clearly outshine traditional second-home ownership. When it comes right down to it, for most people today time is their most valuable commodity. Who wants to waste it cleaning, unpacking, grocery shopping and mowing the lawn? As one owner puts it, “My vacation starts the moment I arrive. We head straight to the restaurant for a bite to eat. When we get back to our residence, our refrigerator is fully stocked, our clothes are unpacked and our ski equipment has been pulled out of storage. There’s nothing left to do but have fun.” Consider Fractional Ownership, and contact any Coldwell Banker Island Affiliate for details of opportunities in the Caribbean. ]]> What is a Timeshare Vacation timeshare involves the acquisition of a specific period of time or percentage of interest in a unit located in a vacation resort. Typically, the intervals acquired are 1-2 weeks. Some variations include: fixed week, floating week, or holidays. Fractional, But Not Timeshare Fractionals differ greatly from the old-style timeshares. The primary differences are that fractional ownership offers: • Deeded property, with the same rights as any other fee simple real estate purchase • Greater chance of property appreciation • Usually a longer amount of time in the property (from 4-13 weeks) • Usually a luxury level of furnishings, services and amenities Of course, all of the above perks add up to another major difference: price. The cost of fractional property is quite a bit higher than that of a typical timeshare, though still much less expensive than whole ownership of a luxury home in the same location. What is a Private Residence Club? Both Fractionals and PRCs offer individuals the opportunity to buy partial ownership of a luxury property in a resort area. Owners generally only purchase the amount of time they plan to use on a yearly basis. Generally speaking, PRCs are of a more exclusive nature than Fractional Ownership, with fewer owners and brand-name sponsors. A few of the key features of PRCs can be summarized as follows: 1) Private Residence Clubs almost always are based in one location 2)They typically offer members 20-60 days of usage, depending on the membership plan 3)Private Residence Clubs often seek assets located in resort and hotel settings. They allow members to rent multiple units if they bring more guests than one unit can manage Next post - the advantages of Fractional Ownership over Timeshares & Private Residence Clubs ]]> Ragatz Associates, there were over 250 fractional developments in North America in 2006 and fractional properties can now be found throughout the world. Outside the USA, a non-commercial form of fractional ownership has been in existence for several decades. In this form, otherwise unconnected individuals (rather than family or friends) form private syndicates to purchase, for example, vacation property or boats. These syndicates operate as private member groups with small numbers on a non-profit basis, generally just sharing expenses and usage. These groups can involve assets ranging from modest apartments or condominium-type properties to multi-million euro / dollar properties. They leverage their ability to make collective purchases of additional assets such as boats or vehicles as additional facilities, while retaining control entirely within the membership of the group. Basically, fractional ownership divides a property into more affordable segments for individuals and also matches an individual’s ownership time to their actual usage time. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property. Occasionally, the property is sold after a pre-determined time, distributing the relative proceeds back to the owners. Each person who owns a fractional share then gets a relative percentage use of the asset, with a management company handling the asset and fractional owners paying fixed fees for this management, sometimes in addition to variable fees for usage. Fractional owners can benefit from capital appreciation, although, on the flip side, they may suffer from depreciation. Key Characteristics of Fractional Ownership: 1. Fractional Ownership offers equity for a fraction of the cost and no maintenance responsibilities. 2. Considering the average vacation home buyer uses the property just three to four weeks a year, Fractional Ownership tends to reflect an owner’s actual use of a vacation home. 3. Buyers enjoy ownership privileges at high-end luxury resorts for a fraction of Sole (home) Ownership. 4. Fractional Ownership (except Private C-ownership) buyers tend to purchase only what they plan to use vs. viewing the property as both a vacation home and an investment asset. 5. Fractional Ownership buyers typically have a recorded deed and title. Next post – Fractional Ownership vs. Timeshare and Private Residence Clubs ]]> Slicethepie enables artists to raise money directly from their fans to professionally record and release an album. 2. IndieVest offers investors a chance to speculate on new motion pictures, connecting film and capital. 3. M1NT is a modern day members club with a twist; the first 250 members collectively own the club - they call it a shareholder's club. 4. Avolus is the first ever fully integrated luxury transport company in the world to provide a door to door service in chauffeur driven cars, helicopters, private jets and yachts. 5. At Come Ride Arizona, fractional ownership applies to the motorcycle tourism industry. 6. RYR offers the chance to wear fabulous fine jewelry, for any celebration, your wedding, birthday, Christmas, anniversary, holiday, party, awards, premieres... just like a celebrity. You might even have your own idea for starting a fractional ownership industry. In this global economic downturn, owning a piece of something looks pretty enticing. A small group of investors pools their money and share an asset, which would normally be out of their financial reach. There are plenty of fractional ownership opportunities in the Caribbean. Stay tuned to future blog posts for details. ]]> free copy of their complete report here.Here are the others. 6. Career Reinvention and Extension More people will find themselves facing a career break (aka being laid off), and many will question whether they want to return to the same line of work—either because it wasn’t fulfilling in the first place or because more lucrative opportunities now lie elsewhere. Others will postpone retirement as they see their savings shrink and will formulate new ideas for late-stage careers. 7. Distraction as Entertainment Understanding that people do more than one thing at a time, content creators are turning what could be a negative (distraction) into a positive (an immersive experience). By layering a multitude of media into entertainment, they are creating content designed for simultaneous consumption and engagement. 8. Authenticity Matters Authenticity will become paramount for brands as they look to regain credibility and trust. In the wake of a financial crisis that has seen established institutions topple overnight and many others teeter on the brink, consumers have lost a great deal of faith in brands once deemed unquestionably reliable; they are searching for truths and clamoring for transparency. 9. Redistribution of Power The coming years will see a widespread redistribution of power in almost every major sphere: economic, social and political. Example: the growing power of the BRIC—Brazil, Russia, India and China—markets. 10. The Collective Consciousness With the increasing popularity of online technologies and a new global mindset, people are thinking less about “me” and more about what “we” can do—collectively—to address the challenges of modern society. You will see most of these trends reflected in the Fractional Ownership market. Properties will become more environmentally friendly, amenities will include opportunities for multimedia experiences, an infrastructure of the latest technology to run the operation and to provide value for the owners will be paramount. It will be an exciting year for the Fractional Ownership industry. Contact any Coldwell Banker Island Affiliate to discuss opportunities in the Caribbean. ]]> free copy of the entire report. 1. Recessionary Living The threat of a global recession has spurred people to make adjustments in their standard of living, whether it be cutting back on spending, trading down, choosing quality over quantity or becoming adept at relying on their own resources. 2. Simple Pleasures The reality or the risk of money running short is a major incentive for consumers to find new ways of enjoying what they have and what they can truly afford. Rather than splurging on extravagant treats and “retail therapy,” consumers will look to simple pleasures as a more suitable and satisfying way to feel good. 3. The Energy Race Global capitalism’s next entrepreneurial Holy Grail is shaping up to be energy-efficient technologies. While the drop in oil prices and immediate economic concerns have taken some of the spotlight away from the energy challenge, significant funds have already been earmarked for alternative-energy exploration. 4. The Small Movement Everything is getting smaller, from stores to cars to mobile technology to packaged goods. 5. The Mobile Device as Everything Hub As the availability of wireless broadband expands and the cost of advanced mobile phones drops, the mobile device will become the preferred hub for digital activity. Going along with the new definition of luxury - LuxYoury - as described in our last post, people are increasingly savoring life experiences rather than just blindly buying and spending. Fractional Ownership will reflect this trend in 2009. Next post - the rest of the 10 trends for 2009. ]]> TrendWatching. For our Coldwell Banker affiliates, the most exciting of the six trends they propose is called Happy Ending. A direct result of worldwide economic woes, Happy Ending refers to the business prospects for firms that really care, that give value and keep promises to the consumer. TrendWatching explains, "2009 will be an excellent year for those businesses keen on showing consumers that they really care...offering respect and relevance (NICHETRIBUTES), listening to real-time needs and wants (FEEDBACK 3.0), helping people to save money while being green (ECONCIERGE): all of this will not be forgotten by consumers that are currently feeling the heat. But the most important side effect of more austere times is probably that consumers start questioning what truly makes them happy, which more often than not steers them towards the realization that happiness ain’t (just) about traditional consumption. Expect pockets of consumers to switch to lower-consumption models with surprising ease, and to look for different and less costly sources of happiness and thus, ultimately, status. Any way you can help them with that will be a guaranteed winner." We at Coldwell Banker Island Affiliates feel strongly we are positioned to help you achieve that Happy Ending, and can demonstrate (if we haven't already) our total commitment to providing outstanding customer service and fulfilling your needs. Contact any of our offices here in our Caribbean Paradise, for the same quality experience. ]]> TrendWatching, is "LuxYoury" - meaning the future of luxury will be whatever YOU want it to be. In their 2009 Trend Report, they define the term for marketers, but it applies to societal issues as well. Traditionally, "luxury" has meant something close to scarcity - the biggest, best, and most expensive things. But 2009 will present a larger number of "scarcities" which will be determined by the eye of the beholder. Two examples from the hospitality industry, marketing new products as luxury, are: 1) Rough Luxe, a new London hotel with small, funky rooms, some of which share a bathroom, while also offering fine wines, plush bedlinen, carefully curated art, and top-notch personal service. Luxury here is defined as a personal experience, not ownership or consumption. 2) Ace Hotel in New York, a new "deluxe Bohemian" hotel, with an approach to include re-upholstered furniture from salvage shops and flea markets. What does this have to do with Fractional Ownership? As a trend, luxury in 2009 will be much more than the wealth flaunted at expensive resorts - although the emerging middle class (see previous blog) will still want this type of experience. It means your choices have never been greater. Our Coldwell Banker Affiliates in the Caribbean can discuss the possibilities with you and provide options for your idea of luxury. Give us a call or email to find what ownership opportunities are available in our Paradise. ]]> The Middle-Class Millionaire, the rise of the new rich and how they are changing America, to explore this new class of wealth. Discover more about who they are and how to become one yourself by taking a short "millionaire psychology" quiz. Simply click this link and follow the instructions on the screen. ]]> www.landshare.net - sounds like a great idea for the rest of the world too. These 2 examples show how the fractional market is limited only by your imagination, and is growing exponentially. ]]> click here ]]> click here]]> click here]]> click here ]]>