About Fractional Ownership Lake Tahoe
There are many Fractional Ownership properties available in the Lake Tahoe and Truckee real estate market. The combination of rising real estate prices, huge buyer demand, and limited inventory can make this a great choice for buyers.
Most people are only using their Lake Tahoe property as a second home for a few weeks out of the year. Additionally, rather than wasting money on renting, fractional ownership gives you a stake in the rising equities at Lake Tahoe. Fractional Ownership can offer a return on your investment that you cannot get when renting.
Different Types of Fractional Ownership
You will find Fractional Ownership properties as condos or luxury residences. They are usually offered as 1/8, 1/6, 1/4, 1/3 and 1/2 shares, although some can be as high as 1/17th shares. Sharing ownership in this way not only provides a deeded position in the property, but buyers have access to more luxurious properties that would otherwise be beyond their price range.
These types of properties provide governing documents and time schedules for use. They often come with property management, cleaning and concierge services. Some offer on-site management, while others are managed through a local property manager.
By purchasing a deeded share in a residence, you will be given access for a certain number of weeks each year. Available access depends on the type of share you purchase. If it is a 1/7 share, you will have six weeks per year, while a 1/17th share might limit this to two or three weeks each year. We currently have a listing at 1/8 share, offering one primary week and four additional weeks each year.
The Benefit of Amenities
Buying a share in a Private Residence Club will give you access to amenities like boating or golfing and membership to a private club. Currently, many are available as lakefront condos, in Squaw Valley or Northstar, or in golf and ski communities. As reduced inventory continues to drive prices upward, we will probably see more Fractional Ownership properties come onto the market.
Owners often enjoy flexible schedules and can swap and choose availability. In other cases, the deeded ownership has a set schedule for the primary week, but allows for flexibility for spontaneous use. Holiday weeks can be sold at a premium and shares can range from $30,000 to upwards of $400,000.
Fractional Ownership vs Time Share
It is important to realize that Fractional Ownership is not a Time Share offering. The actual purchase and deeded ownership makes you a vested owner in the property. A timeshare purchase only offers the right to use the property for a designated length of time, usually one or two weeks per year. In a Time Share offering, the title remains with the property owner and not the individual buyers. Therefore, buyers do not get the same return on investment as property values rise.
Fractional Ownerships are usually associated with high end or luxury listings, with the added convenience of concierge services. This can include grocery shopping, stocking the property, maintenance, and upscale amenity access for skiing, golfing, boating or owning a property right on Lake Tahoe.
This type of purchase is an affordable way to enjoy luxury living. The benefits of having a return on your investment along with access to a prestigious residence makes this a great opportunity. The only draw back is that financing may be limited, and buyers will often need to pay in cash.
Below are a few examples of our Fractional Ownership Properties:
Perhaps the easiest way to own in Northstar's Village. Shared ownership (1/7th) allows for 6 weeks/year of reserved time, plus unlimited spontaneous availability throughout the year when available. Full access to the NPOA recreation center, heated garage and private parking. On-site storage of your gear to keep it easy. Price:$150,000
Great opportunity for easy, affordable ownership in the Village at Northstar! Owners have 1/8 deeded ownership with one primary week and 4 additional weeks of planned use, plus space available use. Enjoy the large deck with views of the Northstar Village ski run. Just steps away from the Big Springs Gondola and hot tub/fitness. Includes access to the Tahoe Mountain Club amenities while in-residence. Primary Week is 4th of July. Planned Use weeks for 2020/2021: Dec 4-11, Dec 11-18, Jan 22-29, July 23-30. Price:$149,000
This 3 bedroom Cabin offers week 26 July 4th for your primary use each year, plus a flex week, mid-week and spontaneous use reservations. Includes Tahoe Mountain Club membership, which offers preferred access to Old Greenwood & Grays Crossing when you are in residence and use of the Pavilion at Old Greenwood. During ski season enjoy use of the Alpine Club and Schaffer's Camp at Northstar. Additional reserved dates: May 14-21, 2021 and May 28-31, 2021. (Photo is of a similar Cabin and not actual residence.) Price:$30,000
If you are interested in learning more about Fractional Ownership in Lake Tahoe and Truckee, contact me today. There are many offerings on the market and I can help you find the perfect investment and dream opportunity for your vacation property.