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A Guide to Vacation Ownership Second of 4 Special Supplements A Toronto Star Advertising Section thestar.com/fractionalproperties Saturday, July 19, 2008 Fractional Properties a guide to vacation ownership Second of 4 Special Supplements take the plunge ow you can enjoy summer on your own terms. nOwning a piece of Ontario cottage country has never been easier. Fractional properties come in an assortment of shapes and sizes to accommodate every holiday need. Inside, you’ll find information on why buying a fractional property makes sense, and advice on how to buy them. There’s also an overview of cottage regions, plus some suggestions on how to keep everyone entertained once you get there. Dive in and make your cottage dream a reality. 2 | Fractional Properties Saturday, July 19, 2008 A Toronto Star Advertising Section Renfrew 3 2 Blue Water Acres Seasons of Muskoka 4 The Landscapes Frontenac Shores Perth H 7 w y 4 Westport 25 Inaski Shores 1 8 Wolfe Springs 5 Collingwood 1 y 7 Resort Cottages at the Pointe 3 w H 1 y Norwood w 6 H Resorts Inc Napanee 1 2 3 4 5 6 7 8 Why buy a Fractional Property? Maximum time to play, minimum worry—and the price is right BY MAUREEN LITTLEJOHN ave you always dreamed Muskokas, they’ll opt for five weeks in about owning a vacation the Muskokas, five weeks in a ski area, getaway in Ontario’s glori- five weeks in a beach or golf area and Hous cottage country but a time-share or two thrown in for good thought it was out of reach? Well, measure. It’s all about options.” dream no more. The reality of diving Fractional units come furnished, into a cool lake, sipping dockside re- and a professional management com- freshments, building sandcastles and pany takes care of everything from frolicking with friends and family in lawn care to barbecue maintenance. the fresh, pine-scented air is more ac- This carefree vacation isn’t for every- cessible than ever, thanks to the con- one, though. Says Perlmutter: “If cept of fractional property ownership. you’re the kind of person that simply By sharing in the cost and responsibil- has to rebuild a deck, paint the living ity of a vacation home, it is possible room or reset paving stones every time to maximize holiday pleasure and you go to the cottage, this type of eliminate the maintenance headaches lifestyle probably isn’t for you. and wallet squeeze that can accom- “If, on the other hand, you’re the pany sole ownership. Shutterstock kind of person who just wants to show In Ontario, fractional properties can ally use, and the costs of maintaining properties offer even longer intervals. up at your property and be sipping a be a single structure or a whole de- the home are proportionally divided “We’re seeing that shared owner- cool one poolside within 15 minutes velopment. They are usually located between the owners of the home as a ship acquisition is no longer simply of arrival, it might be the perfect life- in prime leisure-oriented areas that whole,” explains Ross Perlmutter, ex- driven by economics,” notes Perlmut- style fit. You literally don’t have to do feature sparkling lakes, lush golf ecutive director of the Canadian Resort ter. “Buyers who can truly afford to a thing: the place is cleaned, the bed courses or ski hills. Many are situated Development Association. purchase the entire vacation home are linens are freshly changed and even on slices of premier waterfront and Costs for fractional properties can now purchasing fractionals because the dining room table will be set and are perfect for summer activities such range anywhere from $30,000 to they love the flexibility, the conve- waiting for your arrival.” as swimming, boating, fishing and sun more than $100,000. Shares are di- nience, the amenities and the luxury bathing. vided into time intervals ranging from they offer. Rather than own all 52 Maureen Littlejohn is a Toronto- What do you own when you buy a around four to seven weeks. Some weeks of the year at a cottage in the based freelance writer. fractional property? A share of a stand- alone cottage or villa (attached units that usually have two or three bed- Key points Your use of the unit depends on equipment such as barbecues, canoes rooms), plus shared ownership of the Fractional shares can be resold. the number of shares you purchase. and kayaks. Some high-end properties entire development property, including Shares are completely transferable, but For instance, a one-tenth share equates also offer a clubhouse, pool, mini spa recreational facilities and common land. they are subject to procedures set out to five weeks. Some developments and fitness facilities. Each development’s offerings are a little in an ownership agreement. guarantee summer weeks; others Exchange your weeks to travel different, but they all operate on the A unit can usually be loaned out guarantee year-round usage. the world. Often, fractional ownership same basic premise of equity ownership to friends or family. However, each Amenities included. Generally, allows you to exchange your week(s) of the property as a whole. development has different rules. units are cleaned and linens changed through a worldwide vacation exchange “Shared ownership was born from There might also be a code of conduct between the arrival and departure of company, such as RCI, Registry the realization that acquiring a recre- for both owners and guests. each owner. Ground maintenance is Collection or Interval International. ational resort home was rapidly becom- Pets are sometimes allowed. In many usually conducted all year round, while RCI is largest and oldest, Interval ing out of reach for the average con- developments, there are units for those major repairs are done during specially International is the second largest, sumer,” says Ross Perlmutter, adding, with pets as well as pet-free units for designated weeks. Many properties and Registry Collection is the newest “By purchasing only a fraction of the those with allergies. have docks, beaches and outdoor and most exclusive. home, you pay only for what you actu- thestar.com/fractionalproperties Saturday, July 19, 2008 Fractional Properties | 3 Consider before purchasing • First and foremost a potential pur- able area. If your primary goal in pur- chase should be an investment in fu- chasing is to take advantage of the ture vacations and an enhanced life- exchange benefit, be aware that the style. greater the demand for the unit you “bank” for exchange, the greater ex- • Choose a property that fits your life- change flexibility you will gain. style. Think carefully about what you Shutterstock value most in a recreation and leisure • Shared ownership is one of the most experience, then explore the owner- highly regulated leisure products in shared ownership, real estate and/or developer, rescission rights, disclosures ship products and options available to today’s consumer marketplace. In Brit- consumer protection governs the pur- about the project for consumers, and you. Choose those that will best suit ish Columbia, Alberta and Ontario, chase process. These laws usually ad- provisions for resort management. Go your family’s needs today as well as provincial legislation pertaining to dress financial requirements for the over these with your lawyer. into the future. • Visit a fractional ownership project to assess the quality of accommoda- A glossary of terms the property, including maintenance of tions and recreational opportunities. unit and the grounds, daily manage- If possible, talk to existing owners Banking or deposit: depositing a three weeks and less than whole ment, upkeep and improvements. about their experiences. week of shared ownership into an ex- ownership. change system or inventory pool. Owners association (also “members’ • Read all documents carefully to un- Interval: ownership as measured by a committee” or “strata council”): the derstand fully what type of product is Developer: the company that builds set number of days and nights of an- group of owners that administer the being offered. Ask for a clear explana- the resort and is responsible for con- nual use. Usually measured in weeks. rules and regulations of a shared prop- tion of the language and terms used. structing the accommodations on-site erty. The creation of a homeowners’ and selling the fractions. Lock-off (or “lock-out”): A type of association is often required by pro- • Look for signs of good planning and shared ownership unit consisting of vincial laws. design, such as leisure facilities and Exchange: the system that allows multiple living and sleeping quarters amenities, good housekeeping and owners to trade the accommodations designed to function as two discrete Rescission: a period of time during friendly service. Take a careful look at they own for comparable accommo- units for purposes of occupancy and which consumers have the right to the proposed budget. dations or travel-related services. Most exchange. The unit can be combined to cancel a purchase contract and obtain fractional ownership developments form one large unit or can be split or a full refund of their deposit with no • Verify the development’s affiliation are affiliated with an exchange com- “locked-off” into two or more separate penalty. Dictated by provincial statute with an exchange company and learn pany; some projects also offer an in- units, allowing the owner to split the and company policy, rescission periods about the project’s internal exchange ternal exchange mechanism that al- vacation into multiple stays or bank all vary from province to province. policies. lows owners to exchange weeks or a portion for exchange purposes. within the property itself. Vacation ownership: describes various • If you want to maximize your op- Maintenance fee (“annual dues”): a forms of shared leisure ownership.
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