The Vacation Home Dream shared by many - Owning My Own Vacation Home
Many people dream of owning a vacation home in a resort community, an exotic location, on a beach, or on a Caribbean Island but sometimes their income does not allow this to actually happen. Fractional Ownership allows the Dream to become a reality for many who actually believe dreams can come true.
The basic elements of Fractional Ownership are:
1. Shared Costs
2. Ability to buy larger
3. Lower Purchase Price
4. Fixed or Lower Annual Cost of Ownership
5. Rental Income \ Income producing asset
6. Asset Appreciation
Fractional Ownership is the concept defined as the ownership of a single asset by more than one individual or entity. By joining in with another partner or two, a fractional owner can split the annual cost of ownership or what many call the carrying cost or the “ownership costs” of the vacation home with fellow fractional owners of the same asset.
Fractional Ownership offers the buyer an opportunity to purchase a larger more expensive vacation property (High Valued Asset) as a fractional owner Vs the more traditional “whole ownership” purchase option. Simply stated, the buyer can purchase a fractional share in a multi-million dollar vacation home using the same funds that could only cover a less expensive vacation property. EXAMPLE: Buyer A has $350,000 available to purchase a vacation property. Buyer A can: (1) purchase a vacation home valued at $350,000 and pay 100% of the annual ownership costs estimated to be about 5% of the purchase price or $17,500 which includes such expenses as taxes, insurance, maintenance, repairs, utilities, and more or (2) Buyer A can purchase a fractional share for $350,000 in a multi-million dollar vacation home and pay a fixed annual cost of ownership which is far less than the 5% associated with the “whole ownership” purchase option.
Fractional Ownership allows the buyer to: (1) own a Higher Valued Asset for a lower purchase price (3) enjoy much lower annual ownership costs (3) benefit from potential renal revenue that can offset or pay the annual cost of ownership (4) realize a greater appreciation on a higher valued asset (vacation property).
Miami Beach - The Sultan Suites Fractional Condo Ownership
Is Florida (Miami Beach) Fractional ownership for You?
People who live up North and spend the winters in the cold become the perfect market or buyers for fractional condo ownership, as are the foreign investors who have limited time and finances available to purchase a vacation home or condo on Miami Beach.
Often buyers hesitate in purchasing a vacation home in fear of the significant expense required to maintain a vacation property that is only used a few weeks or a month out of any given year.
The solution for these people is “Fractional Ownership” of a Sultan Suite on Miami Beach because Fractional Ownership offers the security and comfort of owning your vacation property with none of the hassle of traditional “whole ownership” at a fraction of the cost, making Florida (Miami Beach) fractional ownership of a Sultan Suite a great investment.
What is a Condo Hotel?
A condo hotel is a building that is controlled by Condominium Declarations which all owners in the building must follow. Florida has a wide range of residential and condo resort properties and the governing documents often referred to as the Declaration of Condominium vary from building to building and condo type to condo type.
Unlike most condominiums, the Sultan Suites are governed by the Condominium Declarations of the SIxty Sixty Condominium Association. The building is owned by the Hotel Unit Owner or HU and the individual hotel suites or rooms are owned by various individuals or entities and unlike most all condominium properties in Florida, the Sixty Sixty Condominium Association does not own any property and there are no “common elements” belonging to the Condo Association as are found in most Florida Condominium Associations. Everything at the SIxty SIxty including the building and all the building amenities are owned by the Hotel Owner which is the Schecher Group, Inc.
The Sixty Sixty is a Condo Hotel with occupancy restricted to transient occupancy of less than one month with other restrictions on occupancy defined in the Condominium Declarations. At the Sixty Sixty the Sultan Suites, like most all condo resorts, provide the condo owner with rental revenue whenever the owner is not in residence. When the owner is not in residence the unit is rented to short-term renters by Hotel Operator at the Casablanca West Sultan Suites, The rental revenue generated by the Hotel is then split between the hotel company and the owner on a 75/25 basis. The revenue earned helps pay for the costs of owning the vacation condo.
If you are interested in owning a vacation condo on Miami Beach on a fractional basis it may be well worth your time to tour the Casablanca West Sultan Suites.