What is a fractional Ownership

It's a popular new concept and something different than a condotel (see my last post). Fractional ownership is just what it says: You own a Fraction of a whole! There is a new development in Key Largo (Fishermans Cove), anticipated to be completed December '07 : There are 6 residences and each residence is sold by 1/8th. The first six buyers will be able to purchase such fractional ownership for 295K (After that prices will be between 350K to 450K) with a refundable reservation fee of 5K!Here some general info: 6 well appointed residences • Fee-Simple deeded real estate • 1/8ownership3 BR/3BA fully furnished • 2300 sq ft. living space • 450 sq ft.private balcony Waterfront luxury residences, overlooking a tropical lagoon pool,and the pristine Gulf of MexicoWith NO maintenance or hassles…all at a fraction of the cost ofwhole ownership!Amenities & hospitality services you would expect from a 5-starresort Roof top owners’ retreat plunge pool The Big Chill Restaurant and Bar (with room service)Usage of 2008 fully maintained Club Boats & Dockage (Provisioned, fuel; stocked with bait, food, beverages, deliveredto your dock)Private cabanas with flat screens & butler service Membership to The Marina Club adjacent to propertyConcierge ServicesPre-arrival grocery shoppingPersonalized storage lockersHD TV/DVD in LR & all bedrooms with DVD library Fitness Center, Spa treatment room & servicesDaily HousekeepingAll utilities included: (cable, phones, Wi-Fi, electrical, gas, water & sewer, PLUS allreal estate taxes & insurance)A truly carefree vacation ownership with NO hassles ormaintenance! HOA monthly dues $824.00!No lodging or initiation fees!
Not too bad for 295K!
There is no restriction in the amount of time you can use the property; there are rules to reservation procedures etc. that ensure fair use for all owners.
If this sounds interesting to you or if you know of anybody who would like some further info; please give me a call: 305-393-0923! Makes sense to me!

Here are the new properties that have come on the market since my last blog:

Properties that have gone under contract:
Price changes since my last post:

What do I buy at Cheeca?

Several people have asked me what one actually purchases at Cheeca: You purchase a condo; fee simple! The units for sale at Cheeca are not timeshares; you have a deed to your property.
This is how it works: When you purchase a unit at Cheeca you agree to let Cheeca continue to rent the property. Cheeca receives 55% of the rental income; you 45% (10% of the 55% are actually credit card and travel agency fees). You have the right to use the property 28 days out of the year. These days can be consecutive days or split up however it suits you. If you decide to occupy the unit for more than 28 days, you may do so and pay the 55% rental fee to Cheeca.Because Cheecas occupancy rate is 80% and and it is a luxury hotel with all the ammenities (Visit www.Cheeca.com) Cheecas generates a higher rental income than most other rental properties. Condotels are a relatively newer product in the Real Estate Market place and definitely something to consider!
These properties have come on the market since my last post:
these properties have gone under contract:

Please contact me if you would like additional information.

I am waiting to see what the RE market will do.

Again and again I hear these words from potential buyers and with the news we hear day in day out in the media regarding the Real Estate market; I can't blame them!

This is the 'problem': we do not have a lot of sellers in distress in the Keys ergo sellers are not willing 'to give their property away'. They rather hold onto their property until the market comes back and it will; That is the nature of the Real Estate market in the long run. Most properties down here are second homes and let's be honest; most people who own a vacation home in the Keys are not starving. Once in a while -seldom- we do have a sale that was one heck of a deal for the buyer. Most of the time in those few cases, the owner had purchased the property many years ago for a now unbelievable price and is still walking away with a considerable amount of cash in their pocket. Prices have dropped in the Keys, most definitely, but they have not plummeted! Asking prices have finally adjusted themselves to market value and are no longer 'pick a number, the sky is the limit'.

Here are the distress sellers: The buyers who purchased in the last two years anticipating to flip the property, thinking that they were not going to own the property longer than a couple of years. They entered into interest only mortgages; That interest only time period is up, the houses have not sold because values have not gone up over the time of their ownership and they are now drowning in higher mortgage payments for properties they did not anticipate to own so long. A 'short sale' is an option in that case. It means that the bank is willing to satisfie the mortgage with a lesser amount. But even when you look at the short sales available for sale: they are no steals; they are a good value many times, sometimes they are not even that if the owner paid way too much for the property a couple of years ago. Back then some buyers were willing to pay 'anything' just to get their foot in the booming Real Estate market. Hey, even developers did that and you'd think that they'd be more cautious with huge numbers!

This is a great time for buyers with the inventory being so flooded! You are much more likely to negotiate a good price for a property letting owners know that you are shopping the lowest price and ready to buy now. What matters in the end is not the asking price of a property but what you are actually paying! As the buyer you are currently in the drivers seat; Nobody knows how much longer that is going to last but I am pretty sure that once the Real Estate market takes a turn, we are going to see yet again what we saw over the past ten years; a great increase in property values and many buyers who wish they had bought now. The Keys are unique and different than any market in the US. An Island with a Coral Reef and great weather all year long; that's never going to get old and everybody here knows that. Don't wait for the prices to drop (That is probably not going to happen much more down here), put yourself in the great position of being a buyer in this market and negotiate a great price! Sellers are much more 'reasonable' when there is a real buyer with real money ready to make a deal now!

Here are the new properties that have come on the market since my last post: Click'>Click'>http://www.flexmls.com/cgi-bin/view.cgi?20071010163930963520000000&s=6&id=1">Click
these properties have sold: Click'>Click'>http://www.flexmls.com/cgi-bin/view.cgi?20071010164152596251000000&s=6&id=1">Click
and these properties went under contract: Click'>Click'>http://www.flexmls.com/cgi-bin/view.cgi?20071010164250096645000000&s=6&id=1">Click
Thanks for reading my blog!

Old friends

I apologize for not having written in a little while. My old high school friend, Babette, came and visited me for three weeks (Every time she visits she extends her stay). It is seldom that you find friends whom you can stand to have visit you for three weeks; I consider myself extremely lucky to have such a friend (Don't tell her; she'll get a bigh head!). She is getting her last bit of fun before returning to rainy cold Germany tomorrow and I am taking that bit of time to let you know what has happened in the Real Estate market: These are all properties that sold since my last blog:
all properties that went under contract:

I hope you all are well and I'll write more frequently now! Promise!