What is “Fractional Ownership?”Search Fractional Ownership Homes for Sale
Fractional Ownerships and You: Fractional ownership allows you to own a certain period of weeks a year along with other fractional owners in the same house. Speaking legally, you own a fee-simple undivided fractional interest in your vacation home. Your deed is as a tenant-in-common with other fractional owners. Fractional ownership is not a new idea. It was born out of the need for those wanting home ownership without the worries of full-time residence and maintenance.
Fractional Ownership Advantages
There are several advantages to this form of ownership:
- You own and remain in the same house. You r weeks are based on a set yearly calendar, so you know they will always be available for you.
- You are entitled to use all of the benefits, rights and amenities that come with the Ships Watch resort community.
- All owners are subject to the same covenants, restrictions and by-laws that govern Ships Watch property association.
- You are secure in the knowledge that your home and its community are being maintained to the highest standards by a leader in the property management field.
- You can trade or “swap” your deeded vacation weeks with other owners, when the best made plans change.
- All of this gives you the peace of mind that comes with owning your own vacation home.
Fractional ownership requires all to agree to certain standards, usually set forth in the governing documents not only for each house but the entire community. Ships Watch operates through a yearly elected Board of Directors who approves the annual budgets- one for operations and maintenance and one for a capital reserve to replace the parts of your home that wear out. Fractional owners pay a fractional share of that annual budget each month by automatic withdrawal from your checking account. This includes taxes, insurance, maintenance, cleaning, laundry service and all utilities. The monthly fee is all inclusive. All you every have to do is bring your own food (and our Concierge service can even arrange for that). All operations are efficiently run by our own management firm that includes property management and property operations, which includes in-house maintenance and laundry services.
Your Fellow Fractional Owners
You own your fraction interest with others like you in a partnership of shared interests. Demographics show our fractional owners are well-educated professionals mid-career and higher who enjoy living in care-free luxury in spacious homes on the Outer Banks in general and the quaint town of Duck, in particular. Most live within an easy day’s drive along the I-95 corridor. Almost all have strong financials
Fractional Ownership Financing
While fractional ownership is similar to the purchase of a condominium, the cost is closer to that of an expensive car. As such most lending institutions will not lend on fractional ownerships because they do not conform to FHA/VA mortgages that can be re-sold on the secondary mortgage market. We have select banks that will provide entry loans that balloon or are called after 3-5 years. We have private sources for loans with debt to equity of about 30% to 50%. Some existing fractional owners will provide “owner financing”. Ships Watch is a known, desirable resort. We have great experience in matching your financing needs with available funding.
The recent price increase of luxury vacation homes on the Outer Banks has often outpaced the ability of second-home owners. Plus, many owners cannot take the time to open up for occupancy or close up before storms. Fractional ownership provides a practical alternative that is maintenance free. And, it comes with direct beach access and a full complement of amenities and like-minded people into the community that is Ships Watch. Or, as we like to say, “Just another Great Day at Ships Watch.”Contact Us About Buying Your Fractional Ownership