Location: Hawaii
Submitted 07/19/12 09:45 PM

Q. Hi there! I have an aunt and uncle who asked me about "fractional ownership". They are interested in a place they can walk on the beach and is dog friendly. Any insight is greatly appreciated. They are looking at Kauai or Oahu

 

Answer #1
Submitted 07/20/12 06:00 PM
Monique Ting, S, e-PRO, SFR (INET Realty  Honolulu, HI): Real Estate Agent in Honolulu, HI Monique Ting, S, e-PRO, SFR (INET Realty Honolulu, HI)
Real Estate Agent
Honolulu, HI

Contact Me

A.

Aloha,

There are only a couple of properties that are sold as "fractional" on Oahu. In Waikiki, I can see only one that is available about 2 blocks from the beach, but it is not dog friendly...

Answer #2
Submitted 07/22/12 04:21 PM
Marion J. Morton, Marion Morton Realty (Marion Morton Realty): Real Estate Broker/Owner in Pinehurst, NC Marion J. Morton, Marion Morton Realty (Marion Morton Realty)
Real Estate Broker/Owner
Pinehurst, NC

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A.

Fractional ownership is just another variation of a time share.  Your purchase a "right to occupy" a property for more than one week a year; and the periods of time assigned for your use usually rotate from year to year according to a predetermined plan schedule.  These are no more marketable than is a time share.  Once you buy into either a time share or its fractional "cousin" you may as well use it because the probability of being able to sell it on the open market are about "slim" to "none".  Suggest that you choose a vacation property that gives you more options to divest yourself of such a real estate occupancy situation...don't back yourself into that property that can give you weeks some years that are not desirable or convenient for you to use.  You still have to pay the annual fee whether or not you exercise your right to occupy for the period assigned to you for any given year.

Answer #3
Submitted 07/22/12 04:37 PM
Kimo Jarrett, Kimo's Lifestyle Solutions (WikiWiki Realty): Real Estate Agent in Huntington Beach, CA Kimo Jarrett, Kimo's Lifestyle Solutions (WikiWiki Realty)
Real Estate Agent
Huntington Beach, CA

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A.

It depends on how much their budget is, doesn't it? Additionally, would they have any mobility issues or any other criteria about size, access, amenities, transportation and season? With an adequate budget and understanding their priorities about a property, I can assist them.

I was born and raised on Oahu and just returned from the Big Island and Oahu, so contact me and we can exchange information or simply have your aunt and uncle contact me directly.

Answer #4
Submitted 07/22/12 07:10 PM
Deborah L. Kessler, Kauai Broker (Hawaii Life Real Estate Brokers): Real Estate Agent in Kapaa, HI Deborah L. Kessler, Kauai Broker (Hawaii Life Real Estate Brokers)
Real Estate Agent
Kapaa, HI

Contact Me

A.

Aloha,

I am a real estate agent on Kauai. We currently have 13 properties classified as fractionals.  All but 3 of them allow pets. You can contact me directly and I would be happy to answer questions and discuss the listings.

Aloha,

Deborah

Answer #5
Submitted 07/22/12 11:04 PM
Jason Powell (HomeSmart): Real Estate Agent in Scottsdale, AZ Jason Powell (HomeSmart)
Real Estate Agent
Scottsdale, AZ

Contact Me

A.

My friend Thom works is a manager at a timeshare on Kauai. Give him a call, I only have his personal cell. 808.652.3202. He has some of the sought after timeshares on Kauai. Looks like you have lots to chose from, let us know how it goes! -J

Answer #6
Submitted 07/23/12 09:00 AM
Beth Thoma Robinson, R(B) SFR - Hawaii Island Luxury Resort Real Estate (Hawaii Life Real Estate Brokers Big Island): Real Estate Agent in Hawi, HI Beth Thoma Robinson, R(B) SFR - Hawaii Island Luxury Resort Real Estate (Hawaii Life Real Estate Brokers Big Island)
Real Estate Agent
Hawi, HI

Contact Me

A.

Here in Hawaii there is definitely a difference between time share and fractional; timeshares are organized under the relevant statute and because it is the developer/property who must file as a timeshare, not many resort properties are actually timeshare.  Some entire resorts do not allow timeshare, but permit fractional ownership.  

Fractional ownership, assuming the resort and community CC&Rs allow it, is a method under which the owner of an individual property can bring in additional partners. Most commonly I have seen fractional ownership organized as a simple tenants-in-common agreement.  They do not necessarily even pre-select weeks of use.

While there is a liquidity (ability to resale) issue, unlike with a timeshare many of these agreements allow for the remaining partners to buy out an exiting partner, and they can be listed on the MLS in Hawaii, as the agents who are responding have noted.

Answer #7
Submitted 08/26/12 04:54 PM
Roxy Van Bockel, RS (Century 21 All Islands): Real Estate Agent in Kailua-Kona, HI Roxy Van Bockel, RS (Century 21 All Islands)
Real Estate Agent
Kailua-Kona, HI

Contact Me

A.

Have you considered a LeaseHold property instead of Fractional ownership?  You would obtain year around occupancy at a price that is frequently half the cost of a fee simple property.  Due to the way Hawaii real estate is set up, many ocean front condominiums are Leasehold.

And if you are wondering.....the Big Island of Hawaii has some really wonderful oceanfront condominium properties at prices seriously under Kauai and Oahu prices.  We are more "country" but have some of the BEST BEACHES in the WORLD.

Call me if you would like more information.  Real Estate Roxy

Answer #8
Submitted 08/26/12 05:06 PM
Maria Morton, Kansas City Real Estate 816-560-3758 (BHG Real Estate - Kansas City Homes): Real Estate Agent in Kansas City, MO Maria Morton, Kansas City Real Estate 816-560-3758 (BHG Real Estate - Kansas City Homes)
Real Estate Agent
Kansas City, MO

Contact Me

A.

I used to live on Oahu and, if I were going to buy something there for my part time use, I'd buy a condo in Waikiki and rent it out for the remainder of the year. If you want a referral to a good agent that knows that market, let me know.

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