We recently received a call from a client who was excited to see a new condo listing come on the market in the North Coast Village complex listed at $263,000. One thing the client didn't understand was that this condo was not selling for this price for full ownership, rather it was for 1/8 ownership of the condo. Fractional ownership is something we have seen in the past but It really never seemed to gained popularity until recently. It basically works around the concept of 8 different buyers who buy a share in any particular property. All 8 owners own a 1/8 percentage of the property and work together on when they will occupy the property. Any 8 owners may sell their percentage in the property at any given time and the cost of managing the home or condo is split among all owners.
The condo located in the North Coast Village complex has a lot of things going for it. It features two bedrooms, two baths with nice ocean views as pictured below. The private remarks of this listing communicate that "this condo is being offered as a fractional ownership opportunity. There are 8 ownership positions being offered of which 2 remain available. Each owner will have access to the unit for at least 6 weeks out of the year. The condo is completely managed for the owners including scheduling, cleaning, maintenance coordination, and more. Owners simply book their time and enjoy their vacation." It goes on to say that "This is NOT a timeshare. Owners are actually purchasing 1/8 of the real property." This is becoming another way to look at real estate especially with the high real estate price points we are seeing here by the beach in Southern California.
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Listing information last updated on December 1st, 2022 at 7:01pm CST.