Fractional ownership is sparking more interest in the Dominican Republic real estate market
Fractional ownership, what is projected as the replacement of timeshares due to its main concept that relies on ownership instead of membership, is sparking more and more interest among buyers of real estate properties in the Dominican Republic . After a few doomed timeshare clubs closed doors- the last being Sun Village- that left many investors wondering how they got into it, more and more people started to seek an alternative that works in a more protected mode. Shared ownership, another term for fractional ownership, was created.
So what is fractional ownership? Real ownership and right to use as fractions of time in private villas , condos or residential-tourism, which are purchased for periods of between one and three months, even longer. Fractional ownership is similar to timeshare, but includes real ownership papers rather than membership, aimed at market segments of medium to high purchasing power, and offering accommodation in exclusive locations. Is usually divided into three categories: traditional fractional ownership, the high level or HFI (High-end Fractional Interests) and private residence clubs (Private Residence Clubs, PRC) focused on the luxury market .
The villa Ultima has been one of the most demanded villas for rent being built in Sosua, also offered as a fractional ownership property.
The idea originated in the United States due to the high cost of accommodations in Aspen and other ski resorts. Some people have done fractional for a long time, buying villas among 2 or more people under a company creation that handles the property as an asset. Once you buy a fractional ownership share in a property, it works in the principle of several owners that divide time and fees in a synchronized calendar, also the rental income that the house might generate if it`s also included in a rental pool. If the villa or condo is also available for rental, most or all of the maintenance fees are self generating, saving the owners from these costs. The advantage of fractional is that all the owners can swap dates as desired, and even rent extra time from each other.The fractional interest vested on the owners entitle them to use and control the property, as opposed to the timeshare clubs.
Property management is provided by most developers of fractional real estate , and the online calendar shows all rentals and reservations. One of the advantages of the North coast of the Dominican Republic is that the whole area is quickly being turned into a big residential area made up of luxury villas and condos with great ocean and beach views, with less hotels and crowded areas. Places like Cofresi, Cabrera and Puerto Plata have excellent areas where villas and homes can be purchased for retirement or vacation in the island. Golden Treasures Real Estate is one of the first agencies to implement the use of fractional ownership in the North Coast, with the largest number of options.