Fractionals

Fractionals

Are they really something new or just time shares on steroids? Can we learn from old mistakes even when they are renamed. On he welcome page of OPP magazine, one of my favorite publications, the editor suggest that after the recession, “Off plan” purchases will come back. That would be like a toast to celebrate sobriety. The speculation in “Off plan” purchases are as much a part of the current economic situation as the sub-prime mortgages. Off Plan is the word used in international markets for pre-construction.

Fractional ownership is really great for developers. They sell anywhere from 1/15 to ½ of a unit and still retain control of the property. There are many versions of the fractional ownership plan. Most jurisdictions regulate them the same as time-shares. I guess they think, “if it walks like a duck, and quacks like a duck, etc.” Many of the projects have marinas (boat slips) and other facilities that can also be purchased on a fractional basis. OPP magazine has a big article on fractionals that describes the different types of fractionals and examines the pros and cons. http://www.opp.org.uk/index.asp You must register to read articles; but registration is free.

Whatever the future holds if it is just more of the past, the present will be our new future. Is that what we really want? Any success gained from renaming old mistakes will be short lived. New business models are needed. We are technologically very creative. Can we also be creative in business models rather than just in semantics?



David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/