explore quarter share properties for second home ownership
100% of the Lifestyle, a Quarter of the Cost
100% of the Lifestyle, a Quarter of the Cost
Ever talk about buying a vacation home with a few friends? Quarter share properties are the popular, professional way that this is done.
The result? You pay for and own 25% of a vacation home and have it to yourself for one week every month.
Just like owning a full-time vacation home, with a quarter share you have a deed and are the sole owner of your share. Sell it anytime and the appreciation in value is yours.
Quarter shares are purchased in cash or with funds from home equity in your primary residence.
Most commonly with a quarter share, there is an owners calendar and you will have access for one week every month. Trading weeks amongst owners and renting out your week is typically no problem.
The owners agreement simply coordinates how things at the property will be handled. Good agreements make quarter shares smooth and easy.
In brief, you cover 25% of the same costs you would pay for with a full-time vacation home. This is particularly nice when a repair or replacement is needed.
Most quarter shares have a large, locked closet for each owner. Keep your favorite items there for when you come into town.
Quarter shares are quite common in vacation towns, but if you are new...
No. In a timeshare, you do not typically own real estate. A quarter share is deeded real estate, just like your primary home. The only difference is, you didn't have to buy the whole property.
If you purchased a full-time vacation home, you would pay your mortgage, your taxes, insurance, HOA fees, utilities, maintenance costs, and for services like snow removal or cable/internet.
(Full-time Ownership Example: mortgage principal + interest - $4000, taxes - $300/mo, insurance - $200/mo, HOA - $400/mo - water/electric/gas - $250/mo, trash/snow removal - $40/mo, pool/hot tub maintenance - $150/mo, Cable/internet - $150/mo = $5,490/mo)
In a quarter share, what you would typically pay for a down payment on a full-time place (25%) covers your share - no mortgage! All other expenses of the property are split four ways. Your monthly owner fees will include: taxes, insurance, HOA fees, maintenance costs, services, and often a modest reserve fund.
(Quarter Share Ownership Example: $1,490 / 4 = $372.50/mo)
Unless you can afford to own a full-time vacation home and never rent it out, you will be sharing your place with someone. Many feel that it is nicer to deal with a few co-owners you know, rather than a bunch of renters you've never met.
Most of the time, the owners will meet via Zoom once per year at the owners meeting. The rest of the year, there will be occasional emails to discuss things that come up.
Consider this, do you want to be in the property management business or are you thinking of buying and renting a full-time place to cover the expenses? If you couldn't rent it, could you still afford the monthly expenses? How often do you want to use the property yourself, one week a month?
To put it simply, quarter shares make three weeks a month not your problem, not your expense, and not your risk. With short-term rentals becoming much more competitive in vacation towns and with changes in county regulations and HOAs, many people don't want to get caught with un-rentable properties or rental rates that won't cover the bills.
Quarter share rule of thumb: often one night rented covers one month of owner fees. Rent it for two of your twelve weeks and cover your costs for the rest of the year.
3 Bedroom, 2.5 bath quarter share townhome walking distance from the ski resort. First floor king master, upstairs guest room and bunk room. Family room with fireplace, view of Winter Park ski resort. Private deck with hot tub, garage, heated owners closet and more.
$605 per month, includes all expenses, plus professional bookkeeping and local property management with front desk services
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