Monday, August 31, 2009
APOLOGY
On, Wednesday, August 26, I posted a blog about Fractional Usage Plans. I have just noticed the calendar did not post to the blog in a clear manner. This is the result of me not quite mastering the art of posting attachments and I apologize. While I try to figure out what I did wrong, if you need to see this calendar in a more clear, definitive form, please e-mail me at nbscottjr@gmail.com and I will send the calendar to you via an attachment. Thanks and sorry for any confusion this may have created.
Wednesday, August 26, 2009
Fractional Usage Calendar Information
Today, I am going to explain how an owner is allocated their weeks of usage. For the purposes of this illustration I am only showing two years usage. Each time a fractional interest is sold, the new Owner is presented with a projection of their weeks for a period of fifteen (15) years in advance. I have made a few assumptions when preparing this calendar. One, the unit is owned by thirteen different families. Two, all the interests are sold and the first week begins on January 2, 2010.
In reality, a Buyer can look at the available interests when selecting their purchase time and then they will be in the calendar based on their selection. For example if Interest one, two, five and eight are already sold and you purchased interest four, your first week of usage would be January 23, 2010.
A few things you will note about the usage calendar are reflected in the yellow highlighted area on each year. The week in 2010 owned by Interest thirteen goes from one year to the next. Furthermore, because the weeks for each interest move forward one week each year, Interest thirteen has back to back weeks which include Christmas and New Year’s Day. In fact, if you were able to see a full fifteen year calendar projection, you would note that every thirteen years, you come back to where you started when first purchasing.
You can also see from this illustration how the weeks move forward one week each year. By having a fifteen year calendar projection, you can plan well in advance for how you want to use your weeks. It often happens that you are unable to use a week you have assigned; however, you know an alternative week that would be more convenient. You can then contact the owner of the week you would like to use and trade with them, assuming they are in agreement with the swap. Some people do not like to come to Myrtle Beach around the 4th of July because it is just too hectic for their lifestyle. This is a perfect week for them to either rent (if renting is allowed) or trade for the maximum amount of travel credit for a trip other places in the world at a later date. They do not need to make the decision on when or where they are going at the time the deposit their week into the trading pool. They have up to two years to use that credit.
As I have stated in other publications, fractional ownership is not timeshare. It is not the purchase of the right to use a property. It is actual ownership, fully deeded, fee simple ownership of a portion of a property that can be sold, leveraged, past on to your estate, willed, or anything else you can do with a property owned in whole ownership.
I hope this illustration helps you with further understanding of fractional ownership and how the fixed, rotating week program works. There are other forms of fractional ownership which include floating weeks and other methods of usage which I feel are too full of gimmicks. The Greater Myrtle Beach area is perfect for a fixed/rotating usage program because of the ideal climate, golf, beach, and a variety of things to do at different times of the year.
Prepared by:
Norman B. Scott, Jr.
In reality, a Buyer can look at the available interests when selecting their purchase time and then they will be in the calendar based on their selection. For example if Interest one, two, five and eight are already sold and you purchased interest four, your first week of usage would be January 23, 2010.
A few things you will note about the usage calendar are reflected in the yellow highlighted area on each year. The week in 2010 owned by Interest thirteen goes from one year to the next. Furthermore, because the weeks for each interest move forward one week each year, Interest thirteen has back to back weeks which include Christmas and New Year’s Day. In fact, if you were able to see a full fifteen year calendar projection, you would note that every thirteen years, you come back to where you started when first purchasing.
You can also see from this illustration how the weeks move forward one week each year. By having a fifteen year calendar projection, you can plan well in advance for how you want to use your weeks. It often happens that you are unable to use a week you have assigned; however, you know an alternative week that would be more convenient. You can then contact the owner of the week you would like to use and trade with them, assuming they are in agreement with the swap. Some people do not like to come to Myrtle Beach around the 4th of July because it is just too hectic for their lifestyle. This is a perfect week for them to either rent (if renting is allowed) or trade for the maximum amount of travel credit for a trip other places in the world at a later date. They do not need to make the decision on when or where they are going at the time the deposit their week into the trading pool. They have up to two years to use that credit.
As I have stated in other publications, fractional ownership is not timeshare. It is not the purchase of the right to use a property. It is actual ownership, fully deeded, fee simple ownership of a portion of a property that can be sold, leveraged, past on to your estate, willed, or anything else you can do with a property owned in whole ownership.
I hope this illustration helps you with further understanding of fractional ownership and how the fixed, rotating week program works. There are other forms of fractional ownership which include floating weeks and other methods of usage which I feel are too full of gimmicks. The Greater Myrtle Beach area is perfect for a fixed/rotating usage program because of the ideal climate, golf, beach, and a variety of things to do at different times of the year.
| 2010 | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter |
| Interest One | 1/2/10 - 1/9/10 | 4/3/10 - 4/10/10 | 7/3/10 - 7/10/10 | 10/2/10 - 10/9/10 |
| Interest Two | 1/9/10 - 1/16/10 | 4/10/10 - 4/17/10 | 7/10/10 - 7/17/10 | 10/9/10 - 10/16/10 |
| Interest Three | 1/16/10 - 1/23/10 | 4/17/10 - 4/24/10 | 7/17/10 - 7/24/10 | 10/16/10 - 10/23/10 |
| Interest Four | 1/23/10 - 1/30/10 | 4/24/10 - 5/1/10 | 7/24/10 - 7/31/10 | 10/23/10 - 10/30/10 |
| Interest Five | 1/30/10 - 2/6/10 | 5/1/10 - 5/8/10 | 7/31/10 - 8/7/10 | 10/30/10 - 11/6/10 |
| Interest Six | 2/6/10 - 2/13/10 | 5/8/10 - 5/15/10 | 8/7/10 - 8/14/10 | 11/6/10 - 11/13/10 |
| Interest Seven | 2/13/10 - 2/20/10 | 5/15/10 - 5/22/10 | 8/14/10 - 8/21/10 | 11/13/10 - 11/20/10 |
| Interest Eight | 2/20/10 - 2/27/10 | 5/22/10 - 5/29/10 | 8/21/10 - 8/28/10 | 11/20/10 - 11/27/10 |
| Interest Nine | 2/27/10 - 3/6/10 | 5/29/10 - 6/5/10 | 8/28/10 - 9/4/10 | 11/27/10 - 12/4/10 |
| Interest Ten | 3/6/10 - 3/13/10 | 6/5/10 - 5/12/10 | 9/4/10 - 9/11/10 | 12/4/10 - 12/11/10 |
| Interest Eleven | 3/13/10 - 3/20/10 | 6/12/10 - 6/19/10 | 9/11/10 - 9/18/10 | 12/11/10 - 12/18/10 |
| Interest Twelve | 3/20/10 - 3/27/10 | 6/19/10 - 6/26/10 | 9/18/10 - 9/25/10 | 12/18/10 - 12/25/10 |
| Interest Thirteen | 3/27/10 - 4/3/10 | 6/26/10 - 7/3/10 | 9/25/10 - 10/2/10 | 12/25/10 - 1/1/11 |
| 2011 | ||||
| Interest Thirteen | 1/1/11 - 1/8/11 | 4/9/11 - 4/16/11 | 7/9/11 - 7/16/11 | 10/8/11 - 10/15/11 |
| Interest One | 1/8/11 - 1/15/11 | 4/16/11 - 4/23/11 | 7/16/11 - 7/23/11 | 10/15/11 - 10/22/11 |
| Interest Two | 1/15/11 - 1/22/11 | 4/23/11 - 4/30/11 | 7/23/11 - 7/30/11 | 10/22/11 - 10/29/11 |
| Interest Three | 1/22/11 - 1/29/11 | 4/30/11 - 5/7/11 | 7/30/11 - 8/6/11 | 10/29/11 - 11/5/11 |
| Interest Four | 1/29/11 - 2/5/11 | 5/7/11 - 5/14/11 | 8/6/11 - 8/13/11 | 11/5/11 - 11/12/11 |
| Interest Five | 2/5/11 - 2/12/11 | 5/14/11 - 5/21/11 | 8/13/11 - 8/20/11 | 11/12/11 - 11/19/11 |
| Interest Six | 2/12/11 - 2/19/11 | 5/21/11 - 5/28/11 | 8/20/11 - 8/27/11 | 11/19/11 - 11/26/11 |
| Interest Seven | 2/26/11 - 3/5/11 | 5/28/11 - 6/4/11 | 8/27/11 - 9/3/11 | 11/26/11 - 12/3/11 |
| Interest Eight | 3/5/11 - 3/12/11 | 6/4/11 - 6/11/11 | 9/3/11 - 9/10/11 | 12/3/11 - 12/10/11 |
| Interest Nine | 3/12/11 - 3/19/11 | 6/11/11 - 6/18/11 | 9/10/11 - 9/17/11 | 12/10/11 - 12/17/11 |
| Interest Ten | 3/19/11 - 3/26/11 | 6/18/11 - 6/25/11 | 9/17/11 - 9/24/11 | 12/17/11 - 12/24/11 |
| Interest Eleven | 3/26/11 - 4/2/11 | 6/25/11 - 7/2/11 | 9/24/11 - 10/1/11 | 12/24/11 - 12/31/11 |
| Interest Twelve | 4/2/11 - 4/9/11 | 7/2/11 - 7/9/11 | 10/1/11 - 10/8/11 | 12/31/11- 1/7/12 |
Norman B. Scott, Jr.
Tuesday, August 25, 2009
SUGGESTED SITE ABOUT FRACTIONAL REAL ESTATE
As I continue to write about fractional real estate ownership on our blog, I would like to strongly suggest you go to my good friend, Sherman Potvin's site: http://luxuryfractionalguide.com/. In the next bog posted to our site, I am going to go into the detail of ownership, how the weeks you own rotate and how you can enjoy the freedom to exchange weeks with other partners which has the net result of affording complete flexibility in your usage patterns.
Norman B. Scott, Jr.
Monday, August 24, 2009
Latest Fractional News from Myrtle Beach Area
While real estate sales are improving day by day from what we experienced over the past 18 months, they are still not at the pre-boom error. I make the assumption they will never be as good as they were in 2005 and 2006; however, they are able to come back to a more predictable level as financing and more money is available in the market place.
One really bright spot in the real estate market is the sales of fractional properties. Fractional sales have lead the overall real estate industry for the past two years for several reasons. One, a Buyer can purchase the second home/vacation home property they desire for approximately 10 to 15 percent of what it would cost to own the property in whole ownership. Two, given the industry statistic that a second home buyer only uses their home 20 to 25 days per year, it no longer makes sense to own a home outright. Rental income rarely produces enough income to offset to cost of vacation home ownership not to mention the wear and tear on the property. Fractional ownership allows the Buyer to have all they want and more in a second home decision and only pay about 10% of the cost of owning a home as the taxes, upkeep, insurance, H.O.A. fees, etc., are all divided equally between all the owners in a given property. An other distinct advantage of fractional (shared) ownership is significant concierge services which are provided to each owner. Finally, you are able to trade one or all of your weeks of usage and go to other equal destinations throughout the world. Fractional ownership is not timeshare, it is not a real estate gimmick, it is a legal, recognized method of owning a home in the area where you wish to spend vacation time.
Over the next fee weeks, I will write more about fractional ownership and some of the advantages and what is involved. Please stay tuned for more.......
One really bright spot in the real estate market is the sales of fractional properties. Fractional sales have lead the overall real estate industry for the past two years for several reasons. One, a Buyer can purchase the second home/vacation home property they desire for approximately 10 to 15 percent of what it would cost to own the property in whole ownership. Two, given the industry statistic that a second home buyer only uses their home 20 to 25 days per year, it no longer makes sense to own a home outright. Rental income rarely produces enough income to offset to cost of vacation home ownership not to mention the wear and tear on the property. Fractional ownership allows the Buyer to have all they want and more in a second home decision and only pay about 10% of the cost of owning a home as the taxes, upkeep, insurance, H.O.A. fees, etc., are all divided equally between all the owners in a given property. An other distinct advantage of fractional (shared) ownership is significant concierge services which are provided to each owner. Finally, you are able to trade one or all of your weeks of usage and go to other equal destinations throughout the world. Fractional ownership is not timeshare, it is not a real estate gimmick, it is a legal, recognized method of owning a home in the area where you wish to spend vacation time.
Over the next fee weeks, I will write more about fractional ownership and some of the advantages and what is involved. Please stay tuned for more.......
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