Steamboat Real Estate

Main menu:

Site search

Search ALL Listings

Contact Us

Subscribe to this Blog

Steamboat Springs Fractional Ownership Vs. Timeshares–What’s the Difference?

Many people looking for Steamboat ski condos or other investment property think that fractionals and timeshares are the same.

They are not!

People interested in Steamboat Springs real estate who are perfect candidates for fractional ownership are those who:

  • want luxury accommodations,
  • the convenience of owning a place,
  • the appreciation potential of investing without the high cost
  • can plan their vacations around a rotating schedule.

Fractionals like the Steamboat Grand, The Porches, One Steamboat Place, and the Christie Club cost more than timeshares because they are selling deeded real estate, not just time. You actually own part of the unit, so there is greater appreciation potential in fractional ownership. Fractionals are considered appreciating assets, and banks and mortgage firms will often treat them like any other second-home purchase.

Prices for fractionals are typically in the $50,000 – $650,000 range depending on the development, the unit size, the amenities and the number of weeks owned (usually 5-13 weeks).

Most Steamboat Springs fractional ownership developments have great locations–the Christie Club and One Steamboat Place are ski-in, ski-out, and the Grand is right across the street. They have great amenities like pools, spas, owners lounges, and concierge service. Unlike timeshares, fractionals have returned impressive appreciation rates. They’ve appreciated in value because the purchase price goes toward high-quality finishes and amenities–not timeshare sales commissions.

Some fractionals, like the Steamboat Grand, will even rent your unit for you when you are not using it to help offset HOA expenses.

Timeshares, on the other hand, will sell you one week per year of time. You do not get a deed. Financing a timeshare is difficult, if not impossible, because most timeshares depreciate over time and are hard to sell. Timeshares typically range from $5,000 to $10,000, depending on the actual week you purchase, and most people pay cash or put it on their credit card.

Both timeshares and fractionals also require annual HOA fees.

For more information regarding fractional ownership in Steamboat Springs, email Eliese Pivarnik at eliese@steamboathomesales.com or call (970) 819-6372.

Subscribe to Steamboat Real Estate Blog by Email

Posted: November 27th, 2007 under Fractional Ownership.
Comments: 3

Comments

Comment from Jesse Briglia
Time: March 22, 2008, 10:49 am

You are wrong on timeshares. I own 9 Starwood Timeshare Weeks in St. John (4), Atlantis (1), Maui (2) and now Steamboat (2).

You need to buy the best properties and buy the most in-demand weeks.

Here has been my experience with these hi-end timeshare properties…

1. You most certainly do get a Deed.
2. These properties have absolutely appreciated.
3. They are good, if not great, rental properties. As an example…I bought weeks 51 and 52 from a private owner at the Westin St. John. I bought their 3BR, 3BA “pool villa” which has 2,850 sq.ft., private pool, other amenities. I paid $75,000 per week, $150,000 total. I have absolutely no problem renting these properties year after year. Last year 2007, I rented Christmas Week for $17,000 and New Years Week for $11,000. My annual cost for each week (condo fee and taxes) was just unit $2,000. So for $150,000 invested I made $24,000 return ($28,000 gross rents minus $4,000 condo fees/taces). That’s an annual return of 16%. I have same stories in Maui. Show me where else you can get that kind of a return on an investment property. I own a real estate company in Ocean City, NJ. I own dozens of rental units there, and my timeshares out-perform almost all of them.

I have bought and sold timeshares on the after-market and have not experienced any problems…..but you must buy the best properties for the best weeks.

Comment from Eliese Pivarnik
Time: March 23, 2008, 2:17 am

Jesse,
I appreciate your comments and am happy that you are having such success with your timeshares. There is definitely a following where people love them and it works great for them. I have a client, in fact, who wants to purchase two back-to-back weeks in the Northstar condos, and the owner refuses to sell. He says his family won’t let him.

I hope the Sheraton will be a property like you described where you get great return on your investment and also a great place to stay.

Here’s the other side of things, from Timeshares Users Group, or http://www.tug2.net:

“With few exceptions, owners of timeshares purchased from a developer can expect to take a beating on resale. Although it’s not what you want to hear, most timeshares sell on the resale market for only 30% to 50% of the price you likely initially paid to the developer when you purchased. Shocked? Please believe it!

The key is to bury forever any thoughts that because you paid (let’s say) $12,000 for your week, someone else will be willing to pay the same amount. They might, if you were putting on the same glitzy sales presentation that some high-pressure salesperson did when you bought, including giving free incentives for attending the presentation. But you don’t have that luxury. So do your homework and set the price at the right level. It will sell.”

Pingback from Steamboat Springs, CO Real Estate and Community Blog » Steamboat Springs’ Newest Fractional Properties
Time: May 19, 2008, 1:53 pm

[...] Read more here how fractionals and timeshares differ. [...]

Write a comment