The Shared Solution

The Shared Ownership Solution….

… means having a Second Home Lifestyle without Second Home Headaches.

Custom Selection

Take a deep breath and relax, knowing that your best interests are uppermost in the selection of certified fractional homes available through My Waterside Second Home’s “Portfolio of Fractional Homes”. You’re selective, and so are we. What’s important in buying a second home in the beautiful beach and Intercoastal areas of West Florida? What’s important about buying a second home, anywhere?

  • The location should be an established leisure destination with a strong real estate market.
  • Properties must meet established criteria for selection and inclusion, far more than just curb appeal, an enthusiastic description, or a pretty picture.
  • Properties must pass an engineering inspection and a four point insurance inspection.
  • Property fractional price is based on an objective third party appraisal.
  • Properties are denied inclusion in the Portfolio if they do not reflect the best of the lifestyle choices. Stay away from poor quality of ongoing maintenance, inappropriate finishing details, nsufficient reserves, lesser quality view, or insufficient waterside home safety features.
  • Properties are selected by a skilled specialist based on knowledge of local issues.
  • The fractional property is in compliance with all local building regulations and condominium stipulations.

Selecting a location includes not only identifying the most appealing home, but also determining the proximity to activities that interest owners. In a waterside destination location, something can be counted as an amenity when it is within walking distance, like a grocery store, or restaurants, the beach, and entertainment.

Certain homes have been selected to be the product: waterside real estate in a prime location, by the slice. And now our services: we specialize in customized matching of available properties to your needs and desires by finding the appropriate second home for all our owners, and then managing that ownership interest efficiently and effectively.

Affordable Luxury

Fulfill your luxury property dream for a fraction of the cost…. have Paradise on your own terms

An entire fractional property would be out of the price range of many individuals, but because ownership of the home is divided among a small group of people, this upscale second or third home lifestyle becomes affordable.

What does a fractional real estate interest cost? Prices vary based on the size, amenities and location of the individual property as well as the number of fractional pieces per property, ranging from 4 -12. Homes are usually more expensive than condominiums, and properties on the sand are usually more expensive than on the Intercoastal or with canal access. Depending on your lifestyle choice, your individual purchase cost may vary from about $60,000 to $200,000 or more. Compare this with the cost of these top-of-the-line homes if purchased outright as wholly-owned vacation homes.

Not a Time-Share

The real estate family of shared ownership and use includes four distinct categories at different quality and price levels:

  1. Timeshares
  2. Traditional Fractionals
  3. Private Residence Clubs
  4. Non-equity exclusive Destination Clubs.

The Traditional Fractionals offered by MWSH may be confused with Timeshares because there are similarities, such as being shared with family and friends, sold, or left to someone in a will. But the similarities end there – fractionals are different in some very important ways. First of all, fractionals are far more exclusive and include many more luxury amenities and services than timeshares. They tend to be larger homes, usually three to five bedrooms or to be part of an exclusive condominium building complex. While Timeshares are usually for just 1 or 2 weeks per year, Fractionals through MWSH offer from four to 24 weeks, depending on the property. Major differences include:

Purpose
Fractionals, available at a variety of quality levels, are a commitment to a leisure lifestyle in a specific desirable location to which one wants to return periodically. However a timeshare, whether deeded or right to use, is really a “pre-paid” vacation plan to be used or exchanged to varying locations.

Price
A major difference between fractionals and timeshares is price. Timeshares can be bought for a few thousand dollars and are usually shared among many owners, while fractionals in the U.S. cost from about $40,000 to more than $1 million, and the number of owners may be as few as four but no more than 12.

Customer Profile
A fractional ownership purchaser is a second home buyer who probably would not be interested in a timeshare and who has already made a commitment to maximize a leisure lifestyle. Timesharing is a vacation product for the broadest segment of the population.

Quality
Sharing a waterside home in a world-class destination with local owner-directed management brings peace of mind – knowing that a fellow owner is watching out for your welfare, and that your space will be shared by others of similar tastes and means. But Timeshares come in red, blue, and white weeks. Some areas and times are just not that attractive which causes problems in getting desirable reservations for exchanging.

Exclusivity
There are a limited number of fractionals on the worldwide market. Most likely, that number will stay small because fractionals are built only in the very best, most highly desirable locations. Therefore, demand outpaces supply and results in property appreciation.  Fractional real estate ownership properties are typically located in world-renown, resort locations where prime real estate is coveted and in extremely short supply. The residences are characteristically larger and have far more luxurious finishes and furnishings than timeshare accommodations.

Financing
Banks and mortgage firms consider fractionals to be appreciating assets and may treat them like any other second ­home purchase. Fractional buyers usually pay cash, use a home equity loan, or may possibly get a mortgage which will carry slightly higher interest rates and require a larger down payment than a loan for a primary residence. However, obtaining a bank or mortgage company loan on a timeshare is difficult. Rates are high regardless of how good your credit is because most timeshares depreciate over time. Consequently, timeshares are often financed in-house through the developer because financing with a bank or mortgage company is difficult in the “New Normal” economy.

Appreciation
Why do fractionals tend to appreciate while timeshares usually depreciate? There are several reasons. First of all, there are a very limited number of fractional opportunities on the market, whether in resort areas, resort developments or in private residence clubs.  The number will stay small because the emphasis is placed on building only the best, using the most highly desirable locations, or accepting only properties in superior condition. When demand outpaces supply, the result is property appreciation. Currently, demand exceeds supply with continuing appreciation for fractionals and depreciation for timeshares which are far more common. Most of the secondary market fractionals sold at a higher price than for what the owner purchased it from the developer.

With fractionals, more of the buyer’s dollar goes to high quality finishes and “bricks and mortar”, whereas for a timeshare 40-50% of the cost is in sales commissions and marketing expense. Furthermore, timeshare values have historically been poor because of the large number of resales on the market, not to mention a continuous stream of either new developments or “repositioned structures” in older, already built inventory. Timeshares are hard to sell and if you buy one you’re likely to have it for life, whether you want to or not.

Your Co-Owners

Like you, fractional owners want to use their money wisely, appreciate being in beautiful surroundings, and value the waterside second home lifestyle of their dreams. A survey by Economic Research Associates analyzed responses from fractional real estate owners throughout the United States. Of customers who already own fractionals, over 89% owning the traditional fractionals report that they are satisfied with their purchases, noting that the opportunity to own a high quality product in a desirable resort area at a price less than whole ownership was a significant factor for them. Further findings show that:

  1. The fractional market has been dominated by higher-income young retirees and Baby Boomer Households.
  2. 82% indicated the fractional interval fitting their use as being essential or very important in their purchase decision
  3. 50% are couples with no children, 43% couples with children
  4. 35% would purchase additional fractional real estate ownership interests.
  5. 55% earn in excess of $250,000 yearly
  6. 45% have a net worth in excess of $3 million

Among households with incomes of more than $150,000 who do not currently own a fractional interest of resort real estate, half have heard of the concept and more than three quarters of the households think it is a good idea. Even those who can afford to purchase a one or two million dollar vacation home may be able to use the property for only a month or so during the year, and they might feel that it is not a wise investment. Fractionals allow owners to decide how often they want to use the property, and with how many co-owners.

Local Management

The Florida MWSH selection and management team is headed by Marge Coffing, who has over 25 years of experience in real estate management. www.margecoffing.com MWSH provides a hassle free home for fractional owners, so you’ll never need to worry about the repairs or maintenance of your lifestyle second home. You can relax because someone else is dealing with management details. If you choose a condominium, an on-site professional management company takes care of all maintenance issues. If you choose a single family home, bonded personnel are selected to perform all exterior maintenance on a regular basis.

In addition, MWSH will provide owners with a variety of optional services personalized to your needs. Most fractional owners find that time is their most valuable commodity. MWSH wants to make available whatever is needed for experiencing and enjoying your home away from home. Thus you may choose among services such as a “pre-arrival pantry stocking” of basics for the first four days, a housekeeping package, a grocery shopping package, offsite storage options, packing/unpacking assistance package, airport shuttle and car rental arrangements, a sight-seeing package, a tour guide package, or other possible options.