Newport Beach Fractional Ownership Homes

One of the latest trends in real estate are fractional ownership properties.  Over the last year we are starting to see more and more of these listings come on the market for sale here in Newport Beach.  The very low price point is what grabs a lot of buyers attention thinking that they can get this beautiful home or condo for a fraction of what it would normally sell for until they read the property description and find out that it's only for partial ownership. What's happening is that larger companies interested in investing in real estate will purchase prime real estate that will have the most appeal to a large number of buyers.  This would include a nice view of the city or ocean views, open floor plan with high ceilings and a good number of rooms that make it attractive to the general buying public.  

Buying a fractional ownership property means that you own a portion of it with other owners as well.  We are often seeing properties being advertised as owning 1/6 or 1/8 fractional ownership which means that you are sharing the property with 5 or 7 other owners respectively.  This is different than a time share since you actually own the property with other owners and can sell your interest at any time.  This makes a lot of sense for those just getting into the real estate market who can't afford to buy a more expensive property.  it's important to note that companies are often buying these homes for a profit when selling the various fractional ownerships so we always recommend doing your due diligence on any property to see if the price point makes sense.  If you had to sell at a later date you want to make sure you sell it for a price that would make the most sense to you.  There is currently one fractional ownership condo on the market in Newport Beach.  It's a 2 bedroom ocean view condo that is listed for $375,000 for a 1/6 fractional ownership.  For more information on buying real estate in this manner please contact us at 949-444-1901.