Luxury Amenities Abound...

This article I read on MSN Moneycentral is certainly optimistic toward fractional ownership of vacation real estate. It seems the types of F/O properties in the news the most are those that 1) are offered by established hospitality industry players like Four Seasons, and 2) cater to the luxurious side by offering very high-end luxury amenities by stocking the fridge and providing massages. I suppose we see these offerings the most because of the marketing fire power of the participants. While I believe there is great value in these luxury F/O's, this is not where I plan to focus my efforts at all.

The focus of my properties will not be on luxury per se. We will work under the belief that people just want to go to the shore and be near the beach. They do not need a consierge to make them reservations or someone to stock their refrigerator as most of their dining will occur either in a local restaurant or on the deck using the grill. They just want to arrive at the house and enjoy the shore.

Not having all of these luxury amenities should go a long way in controlling ongoing costs. I suppose providing beach tags makes sense though....

Note: I am guessing that this is not a recent article, since the author says that traditional financing is not available for this type of property. This is not true at all. I have personally spoken to representatives at two different finance companies that are in the business of lending mortgages to buyers of F/O vacation homes.