| Have you thought of having a place to escape to in the middle of winter for some skiing or perhaps some warmth in the sun? Or maybe even a summer cottage to escape work and the rat race? If you haven't yet, over the next six months it won't be surprising if it pops into your head mostly due to some aggressive advertising. The word is getting out, Albertans are doing well and they have more money to spend than most residents of other provinces and most of the US. With this knowledge, we are becoming a target for companies selling fractional ownerships, full ownerships, and developments in all kinds of locations throughout North America. Fractional ownership is probably the hottest trend currently in this area and it involves multiple owners each owning a fraction of the property. Depending on the fraction, this can range from a couple weeks per year where you have access (similar to a timeshare) up to a couple months. Since you are an actual owner, you also get the benefit of any appreciation on the property. There is an obvious appeal to this as it provides a buyer with both a holiday retreat and an investment without the full costs of buying a property on their own. The excitement of owning a property (even if it is just a small portion) in exotic locations like Mexico, Belize, and other Caribbean locales adds even further to the allure of fractional ownership. Recreational properties in areas such as the BC interior or Vancouver Island are also an exciting option. Having a place to spend a month or longer near a lake or the ocean can make for wonderful family memories. The extra appeal of being able to rent these properties out during the time you are not there will also help offset costs. The excitement of owning a recreational property either by full or partial ownership is what makes these properties so easy for marketers to sell. This combined with the disposable cash many Albertans have in hand can create a dangerous combination. With many of these properties located too far away to easily do all their diligence on, many buyers are not going in with all the information they need to make informed decisions. It is just important for you to do all your homework on these types of opportunities as it would be for you to purchase a new home or local property and it may require even more work. Properties in foreign countries have entirely different rules, regulations and even weather than in Alberta. If you are unaware of some of these, it may severely impair your enjoyment. You wouldn't want your month in Belize to be in the middle of hurricane season would you? Advertising for these types of properties is becoming more common place and is only going to increase as the worries about the US economy increase and marketers from the South are looking for people who are more likely to spend their money. While there are many great opportunities out there that are worthwhile, make sure you do all your homework and realize there are also some shysters out there who would be more than willing to take your hard earned money.
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| Author: Bill Biko |
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Author Bio:
Recognized as an expert in Real Estate investing Calgary Alberta Canada Bill has helped dozens of people become involved in Real Estate and Real Estate investments. With his weekly Real Estate column in a local newspaper and his monthly Newsletters he helps homeowners and investors stay on top of the current trends and topics. |
| This article can be searched using: rental pools, fractional ownership, recreational property, buying a cottage |
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