Living the Good Life – the view of fractional ownership from one Canadian
I found this article and thought it was spot on in terms of describing the benefits of fractional ownership at Mountain Spirit Resort in Kimberley. This chap is called Bob Wood and is a regular contributor to Regular Forever Young. Bob found it easy to write on the pros and cons of fractional ownership of a recreation property – he’s an owner himself. Here’s his article:
I’m sitting on the side deck of our comfortable, modern two-bedroom, Muskoka-style cottage ready to attack a mystery novel, sipping a glass of chardonnay. My only worry on this day is whether I’ve applied a suitable amount of sun block. While April 13 may seem a little early to be soaking up cottage-country rays, the warmth of the afternoon sun is trapped on the porch, making a liar of the thermometer and tricking me into thinking that we’ve skipped spring and jumped straight into summer.
And as I look around, it’s all mine – sort of. We get to enjoy spring, the other three seasons and a bonus summer week with the five-week fractional-ownership package we purchased a few years back at the Bayview Wildwood Resort’s Cottages at Port Stanton development.
Started in 2003, the Cottages at Port Stanton bills itself as the closest fractional ownership project to Toronto – a 90-minute drive. With “unbeatable views” of Sparrow Lake and the surrounding rugged Canadian Shield countryside, we have been able to appreciate “the joys of lakeside living” pretty much as advertised since April 2004.
Is fractional ownership for you? Before we bought into Port Stanton, my wife and I, now both in our 50s, hadn’t really given the idea much thought. I suppose fractional ownership seemed like something intended for other people – with lots of money.
Up until about six years ago our vacation experience was split between “car camping” at various provincial parks and booking inexpensive hotel accommodation. Then, the need to escape the day-to-day grind of work and, additionally, take a break from caring for aging parents began to get to us and so we decided to spoil ourselves with a three-day/two-night package at a family resort north of Orillia known as the Wild Echo Bay Lodge.
Looking across Sparrow Lake on a snowy Friday night, we detected some building activity and decided to check into it. We were thinking at the time it was a timeshare and we expected the stereotypical hard sell associated with those places – but instead got the soft sell. And we were sold. The Cottages at Port Stanton rose on the site where Wild Echo Bay Lodge used to be.
We soon learned the difference between timeshares and fractional ownership. These units were the latter.
It turns out, the idea of sharing resources to purchase a vacation property has been around for years. As far as formalizing such arrangements in a commercial form, timesharing preceded fractional ownership. The first timeshares were apparently offered at a ski resort based in the French Alps in the sixties.
The fractional-property industry in North American didn’t really get going until the early 1990s, beginning at ski resorts in Colorado and other Rocky Mountains states.
So what’s the difference?
A timeshare is a right to the use of a property. Timeshares can be resold to another party as time, not as traditional real estate. On the other hand, fractional ownership (generally defined as a percentage share of an asset) can be resold, as fractional ownership conveys title of land.
As far as usage of the property, there are different schemes – fixed periods, floating dates and blends of both. A fractional share gives the owners certain privileges, such as a number of days or weeks when they can use the property.
For me, fractional ownership works just great. Here’s how:
- Disciplined me to take holidays
According to a Decima Harris research poll done last year, nearly one-quarter of employed Canadians report not taking all of their vacation days. This translates into 34-million unused days in Canada overall, representing about $6.03-billion in labour donated to employers. I am not inclined to work for free.
- Gets me away from the phone
We jump when the phone rings, which is probably a good thing.
- A break with no maintenance
Unlike traditional cottage owners, we’ve got no chores to do when we get there.
- A place for everything
Everything in our luxury, furnished cottage is always where it is supposed to be – not something that can be said about my permanent residence.
- The price is right
It seems cheaper than other types of vacationing. I leave it to financial gurus to prove me wrong but our maintenance fees for a week run in the $500 range for a two-bedroom. We originally paid about $44,000 for 50 years’ use of the property.
- Love that natural living. We can get closer to nature than our regular suburban existence.
I haven’t found any negatives yet and as I sip my wine and contemplate the good life, I don’t think I will find any.
Fractionals: a growth industry
Not so long ago, if you wanted a weekend or summer getaway, you bought a cottage and with it the costs of upkeep, or rented at a resort – hoping you could get a decent slot in the season you wanted. The idea of buying “part” of a cottage – one where someone else shouldered the responsibility of maintenance – was unheard of.
Today, however, fractional ownership is a rapidly growing industry, says Sue Nickason, a marketing consultant working with three such communities, including the new Cottages at Windermere House.
Fractional-ownership developments are springing up throughout Muskoka as well as other “cottage country” regions, like Haliburton, the Kawarthas, the lake region north of Kingston, and Georgian Bay. Nickason says the priorities for most are lakes, golf and ski opportunities. Most also like to be within three hours of their home base, although she sees buyers coming from as far away as Alberta and even England.
Read the article here: http://www.foreveryoungnews.com/leisureandlifestyle/article/16069