Different Types of Ownership
Telluride and Mountain Village Offer the Savvy Property Buyer Different Types of Ownership to Suit Their Needs
To help you find creative ways to purchase your dream vacation home – a property in Telluride or Mountain Village – we’ve included the three different types of ownerships available for real estate. They include Regular whole ownership Purchase, Deed Restricted Ownership and Fractional Ownership.
Regular Whole Ownership Purchase:
Just as the name infers, a Regular Purchase is the purchase of a property through traditional means such as any one of several mortgage options. The benefit here is that the owner can rent out the property during non-use and collect income from the rental. This income can be used to pay the mortgage, so in essence, its paying for itself.
Similar to a timeshare, Fractional Ownership is the practice of dividing an asset into shares and selling those shares to individual owners.
Fractional Ownership is not a Timeshare in Telluride and Mountain Village
Luxury fractional ownership offer vacation home benefits at a fraction of the cost of owning an entire vacation home. The concept of fractional ownership debuted in the mid-1990s and is similar to the model of shared possession of private jets.
A fractional purchase typically receives an undivided percentage interest in fee simple in an individual residential accommodation and the related common areas of the applicable resort. The purchaser has the right to occupy such accommodation or one of similar size and type and use the property amenities for a certain number of days or weeks each year.
A fractional accommodation is most often a condominium or town home unit, but can also be a detached single family home, or hotel suite. Some fractional projects participate in an exchange program, whereby purchasers have access to other properties of comparable quality located through out the country.
Fractional purchasers pay a one time purchase price and yearly assessments that cover the expenses of operating and maintaining the fractional project. Although financing for the purchase of a deeded fractional interest isn’t nearly as prevalent as it is for the purchase of a whole ownership vacation home, some lenders are treating the two purchases similarly for financing purposes. For names of lenders that provide financing for Fractional ownership, contact us.
Fractional purchases may or may not rent their reserved accommodations depending on the property. The rental program representative should have the details of the rental program.
Dozens of opportunities for this kind of flexible ownership exist in Telluride and Mountain Village, including luxury units located in the Frantz Klammer Lodge, River Club, Bear Creek Lodge, Aspen Ridge, Inn at Lost Creek and Pine Meadows to mention a few. For further information on any of the available properties, contact us.
Deed Restricted Ownership:
The Deed Restricted home is a benefit for residents of a particular community and was developed to provide affordable housing in markets that are typically more expensive such as resort communities. The property is then owned outright by the person eligible to receive this benefit (residents of the town in which it is located.)
How Deed Restricted Ownership Works to Benefit the Locals in Telluride and Mountain Village
For detailed information on how the Deed Restricted Ownership plan works, read "Understanding Deed Restricted Housing".