What is a Fractional Ownership at Villa La Estancia?
Fractional ownership is the name given to the shared, deeded, ownership of a property wherein a number of “partners” own a percentage of the same property. Villas in this particular program at Villa La Estancia are fractionally divided into eighths (6 weeks) and quarters (13 weeks) of the year.
Where did the concept of fractional ownership originate?
The idea of fractional ownership itself has been around for a while; friends, families and business associates have been pooling their funds to buy property for hundreds of years! In fact, in the 1990s fractional jet ownership became quite popular!
Is Fractional Ownership the same as Timeshare?
No. Fractional ownership occurs when the buyer purchases a percentage, or fraction, of real estate, rather than units of time or points. Each fraction can appreciate in value according to market patterns and each owner can sell their share of the property whenever they wish to!
How do I know my schedule for use?
When you purchase a fractional property at Villa La Estancia you will be given a schedule of use, so that you can plan years in advance, if you wish. The schedule is a fixed rotatation, so you will be able to calculate easily when your property is free for you to use.
As a fractional interest owner, will I have exclusive use of the property?
During your allocated weeks, you will have exclusive use of your property. No matter if you are using your property or not, the unit will not be occupied by anyone else during your scheduled time, unless you wish to rent it privately or through the hotel. You can leave it empty on some of your days, or turn up halfway through your allotted time, if needs be. It is entirely up to you how much use you make of your time. Only other fractional owners and their guests will use the property during their scheduled times.
Who are fractional properties really for?
This type of ownership is perfect for you is you want the benefits of owning a vacation home but couldn’t afford or justify full ownership. One of the great things about fractional ownership is that you’ll usually be able to get a more luxurious property than you could otherwise afford on your own, likewise you’ll be in a very exclusive and secure community, complete with management services! Owning luxury real estate becomes more affordable.
Once you get the taste for fractional ownership, you will find that every time you visit Villa La Estancia, it feels like you are coming home. You will own a wonderful piece of real estate without having all the responsibilities!
How do Fractional Villas differ from residence clubs or condo hotels?
Both vacation home models offer luxurious accommodation and great services; however, fractional ownership Villas offer a greater sense of permanency! When you purchase membership at a residence club, you are signing up for a like for like unit at a resort rather than a specific residence that you will use each time you arrive. Instead, you enjoy suites with a similar, or the same, floor plan. With fractional ownership, you stay in the same residence every time, so you really cultivate a sense of belonging, and, as an added bonus, when the property appreciates you are entitled to your share!
Can I have guests stay at the property?
You can have any guest you wish at your property during your allocated time! During this time it is, essentially, your home so you can invite whomever you wish, whether they be family, friends or business partners. In fact, if your schedule is too hectic, you can allow others to use it in your stead. Guests, however, are your responsibility and will be required to respect the bylaws, rules and guidelines at Villa La Estancia.
Can I rent out my unused time?
Of course you can! If your schedule is too tight to allow you to make use of your priority time then you can rent it out to make a little money for your next vacation! Some Villas will qualify for exchanges, and tax benefits. Your tax advisor will be able to determine what these might be for you.
Do I have the same tax considerations with fractional ownership as with purchasing the entire property exclusively?
When you have the benefit of fractional deeded ownership of a property then you gain the same privileges and responsibilities that come with owning any other piece of real estate. You will experience potential appreciation, depreciation, interest and expenses just as you do with your first home, and you may sell or rent your priority time whenever you so choose. You should discuss your individual tax circumstances with your professional tax advisor, however.
Can I finance my purchase?
For a limited time, the developer at Villa La Estancia is offering financing, with a typical deposit of 25%, for up to 10 years. Most owners choose to pay entirely in cash, or to pay for their share with equity from their primary home.
Who maintains the property?
The property manager will oversee the maintenance, housekeeping and care of your Villa on an ongoing basis. The expense fees that you pay cover this cost, as well as the cost of repair and replacement of items damaged through wear and tear. The real estate fractional property will be kept clean by a professional housekeeper, who will in turn be supervised by the management team.
Any specific damage caused by accident, or otherwise, by owners and their guests is the responsibility of the owner of the priority weeks when the damage occurred. Local professionals will maintain the pool and gardens on a regular basis and any painting and repairs required for the Villa at large will be provided as and when needed.
Can I sell my share in the future?
Certainly; while we hope you will want to keep your fractional share permanently, you may sell it whenever you wish to do so. Resale shares are generally listed with a local real estate agent who will promote and oversee the sale of your share. You can also advertise in publications such as magazine and newspapers to sell your share just as you would any other real estate property that you own. If a fraction of the property you have invested in comes up for sale, you could also opt to buy that section of the villa, too.