Fractional Ownership

[thecaseyfamily]

We are very interested in buying beach property sometime in the next 18 months. But we do not have the resources (time and money) to make sense of buying a nice beach home individually. We prefer the communities with nicer amenities (St. Joe Developments) ... but I am unsure if there are homes for sale with fractional ownership possibilities.

My questions are:
1) Are there homes for sale with fractional ownership?
2) If so, what is the best way to research them?
3) What do I need to be most CAREFUL about in proceeding with this type of purchase?

Thank you in advance for all your help!

 

[egrp]

JOE provides 2 fractional opportunities...one in watercolor and one in watersound beach. they are condos and you should simply contact a JOE salesperson from the website and they will give all the info you every wanted to know.

good luck

 

[Franny]

We are very interested in buying beach property sometime in the next 18 months. But we do not have the resources (time and money) to make sense of buying a nice beach home individually. We prefer the communities with nicer amenities (St. Joe Developments) ... but I am unsure if there are homes for sale with fractional ownership possibilities.

My questions are:
1) Are there homes for sale with fractional ownership?
2) If so, what is the best way to research them?
3) What do I need to be most CAREFUL about in proceeding with this type of purchase?

Thank you in advance for all your help!

I know of a family interested in selling their fractional condo in Watercolor. They have been very happy with the arrangement and plan to purchase a larger unit or home in WC. If interested send me a PM.

 

[tsutcli]

The PRC (Private Residence Club) at Watercolor consists of 11, 2BR/2B, units with 8 fractional owners for 88 total. There are 9 for sale now ranging from 155,00 to 184,000. You can't beat the location: S side of 30-a right across from beach walkover, beach club, Fish out of Water and workout facility. You want to talk to Marianne in RE office (850-231-6500) for particulars as to # of weeks/year, monthly dues, etc.. Beautifly furnished with flat screen TVs, Bose surround sound, WIFI, contemporary furnishings-high end.

 

[thecaseyfamily]

Thank you for the wonderful info ...
Does anyone know the particulars on Watersound. The facts about Watercolor were great, but the zero entry pool at Watersound would make that community as better fit for us. I will definitely follow up with with Watercolor ... but any info on Watersound's fractional ownership program would be greatly appreciated.

Again, thank you in advance!

 

[Matt J]

The PRC (Private Residence Club) at Watercolor consists of 11, 2BR/2B, units with 8 fractional owners for 88 total. There are 9 for sale now ranging from 155,00 to 184,000. You can't beat the location: S side of 30-a right across from beach walkover, beach club, Fish out of Water and workout facility. You want to talk to Marianne in RE office (850-231-6500) for particulars as to # of weeks/year, monthly dues, etc.. Beautifly furnished with flat screen TVs, Bose surround sound, WIFI, contemporary furnishings-high end.

Well considering that only about 3 of those units have Gulf Views it doesn't stirke me as all that attractive. Of course you do get a gym style locker to store your personal stuff.

 

[iqueequeg]

I have an idea that probably won't work for you but I'll throw it out there anyway in case it does.

Instead of buying a fractional ownership property, you could look at properties in WaterSound (or whatever community you decide on) and offer to buy a half interest in a property that is for sale. Some owners might consider this because they really don't want to sell, but are forced to by cash flow problems, and getting rid of half their mortgage would allow them to keep it.

There's a website, halfshare.com, I believe run by some local folks, that has legal papers required for this kind of transaction available for purchase. It's more complicated than a regular transaction, the biggest hurdle being that most banks won't give you a loan so you'll need cash.

It probably doesn't work for you, but you might get more for your money if you did something like this.

 

[fisher]

The PRC (Private Residence Club) at Watercolor consists of 11, 2BR/2B, units with 8 fractional owners for 88 total. There are 9 for sale now ranging from 155,00 to 184,000. You can't beat the location: S side of 30-a right across from beach walkover, beach club, Fish out of Water and workout facility. You want to talk to Marianne in RE office (850-231-6500) for particulars as to # of weeks/year, monthly dues, etc.. Beautifly furnished with flat screen TVs, Bose surround sound, WIFI, contemporary furnishings-high end.

Let's do the math here. 1/8 for $155k to $184k. That equates to an implied value for a 2/2 of $1.2 million to $1.5 million. You can have 100% ownership in a 2/2 in Watercolor in the $700's (or maybe less--make an offer--you never know). The fractionals sound like a pretty bad deal at those prices. Prices will need to fall to less than $100k to be a good deal. Timeshares--oops, I mean fractionals--are rarely a good deal unless you buy at less than comparable units are selling for on a whole unit valuation basis.

Also, where are the fractionals in WS? I believe they were planning to build some fractionals, but I wasn't aware of any that already exist.

 

[tsutcli]

Yes, that is true that probably only the 4th floor ends have a gulf view, but what can you get on the south side of 30a for the price with all the amenities? I believe that the price includes a min. of 5 weeks with bonus weeks if a unit is empty - but should check - maybe more now. Also, while you do buy a share of a particular unit for deed purposes, when you make a reservation you can request any of the units that may be available so gulf view may be available. Oh, also you have a dedicated building manager to handle reservations, etc.
True the lockers aren't huge, but most people I know, and I've assisted quite a few, only keep non-perishable food stuffs and some personal items they don't want to take back and forth.

 

[tsutcli]

Let's do the math here. 1/8 for $155k to $184k. That equates to an implied value for a 2/2 of $1.2 million to $1.5 million. You can have 100% ownership in a 2/2 in Watercolor in the $700's (or maybe less--make an offer--you never know). The fractionals sound like a pretty bad deal at those prices. Prices will need to fall to less than $100k to be a good deal. Timeshares--oops, I mean fractionals--are rarely a good deal unless you buy at less than comparable units are selling for on a whole unit valuation basis.

Also, where are the fractionals in WS? I believe they were planning to build some fractionals, but I wasn't aware of any that already exist.

The cost of ownership in the PRC includes all maintenance, housekeeping, insurance etc.. Also, if a TV, furniture or something else goes down it is replaced. Right now there are two 2BR/2BATH condos on the south side of 30a( let's compare apples with apples ) for less than $1M (795k and 850k) and about the same square footage as the PRC units (1400 sq.ft.). These are both 1st floor units in buildings at the west end of the property, no view of course, and a little bit of a walk to beach walkover, beach club, etc.
If you want to own a vacation place at the beach with 0 maintenance and worries, then this type of ownership may be for you. Not for everyone for sure.
Not aware of any fractionals at WS.