You've heard about fractionals right? No? Well, you must live in an urban area with mostly full time residents. If you live in a ski area in Colorado or British Columbia, you've probably heard about fractionals. Hawaii law defines a fractional as ownership for a minimum of sixty days, to be delineated from the concept/product known as timeshare.
In this buyer's market, seller's have long been desiring to do something different that makes their offering unique. Well, a fractional allows a seller to sell their property in six segments, each 60 days long. It's a great approach to "lifestyle living", meaning, only own the time you are going to use. If you live in Nebraska and want to spend January and February in warm, tropical Kauai, then you only need to purchase those two months of ownership. So, that's the basic concept.
Unfortunately, only a couple of sellers on our island have done the due diligence to properly equip and document their fractional LLCs and also created the marketing to help agents understand and sell the product. In Princeville there are several condos and a a couple of nice homes for sale as fractionals. An owner can buy a 1.5 million dollar home and live it for a couple of months for only $365,000. That works for some people.
Anyway, it's nice to have options. To learn more about Kauai fractionals, check out one of the leading developers' sites, Island Fractional Homes. The developer has built a beautiful web presence and is doing all the right things to be successful. Here is a list of the current fractional offerings in Princeville:
The listings on Kamehameha Rd. and Kaa`humanu Place are single family homes. The remodeled one on Kaa`humanu Place has a cute little lap pool and is right on the Makai Golf Course. The two different units at Villas of Kamalii (VOK) are very tastefully appointed and developed by the developer i mentioned above. The VOK units are some of the nicest Princeville condos in the entire market.
If you know anyone who has an interest in this type of property, I can mail you a physical packet with pictures, FAQ, and lots of good supporting collateral.
When fractionals began appearing formally about four years ago, all the transactions were CASH ONLY. Now, there are some lenders who will provide loans for the fractional investment.
Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: email@example.com