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Although many people dream of owning vacation property, most either can't afford the type of property they want, or reason that they would not use the vacation home often enough to justify the expense. Most recently, timeshares have become a trendy alternative to second home ownership, but more and more owners are realizing that the time they purchase (usually a week or two) just doesn't justify the hefty maintenance fees associated with these overcrowded properties.
Fractional Home Ownership provides a solution to these problems by allowing you to pay only a fraction of the costs and ongoing expenses of vacation home ownership, without having the enormous maintenance costs typical of timeshare ownership. By purchasing a Fractional share in Kaiolu Sunrise, you'll be deeded a 1/6th Fee Simple ownership in an upscale condominium in Waikiki, which you can utilize and enjoy two months each and every year.
Q: What is Shared or Fractional Ownership?
A: Fractional Ownership is an arrangement where a group (most often complete strangers but sometimes family or friends) share the costs and use of vacation property. Typically, each co-owner owns a percentage of the property and is shown on the title and deed as an owner. The deed actually specifies particular days, weeks or months when the co-owner may use the property and a detailed co-ownership agreement (or operating agreement) outlines usage rights, cost & responsibilities between the co-owners.
Q: What are the advantages of shared ownership?
A: Most people that own a second or vacation home don't use it every week. So it sits empty, or it's rented. By purchasing a share, you only buy the part of the home that you're going to use. Furthermore, shared ownership can appreciate, like real estate. (Note that real estate is an investment with risk, and appreciation is never guaranteed).
Q: How is Fractional Ownership different from Timeshare?
A: In a timeshare scheme, you're buying the right to use a unit (not necessarily the same unit) for a week or more per year. With 1/6th share ownership, you own 16.67% of the of real estate and common area furnishings. Also as a co-owner of a Fractional property, you and your co-owners have more control over setting the operating expenses of the unit, which generally gives you a better cost-to-benefit ratio in comparison to a timeshare units.
Q: Who manages the property?
A: Property management responsibilities will be provided by Arquette Properties, Inc., a local firm here in Hawaii that has over 20 years property management experience. Arquette Properties, Inc. will handle all of the day to day tasks including cleaning, maintenance and accounting, so you don't have to. Just show up and enjoy your home the way you always wanted to.
Q: Can I get income from renting my months?
A: You own your months and can choose to rent them during your allocated time-slots. For an additional fee of 20% of the rental income, Arquette Properties, LLC will even help you find a renter for you. Keep in mind that you are responsible for any and all damages that may occur during that time.
Q: How much are the annual dues?
A: Annual dues are established for each residence based on actual costs as incurred by the owners. All costs are carefully tracked and reported to you as an owner by the management company. To get a detailed breakdown on the projected annual cost associated with this fractional property, download the Kaiolu Sunrise Prospectus at the top of this page.
Q: Is financing available with Fractional Ownership?
A: Currently not at this time.