RNCollins
TUG Lifetime Member
- Joined
- Jan 2, 2016
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- Location
- Borscht Belt
- Resorts Owned
- Tradewinds, Divi, Quarter House, Casa Ybel
How a Real Estate Concept From the Middle Ages Can Still Backfire
https://www.nytimes.com/2019/06/07/your-money/fractional-real-estate-risks.html
By Paul Sullivan / Your Money / The New York Times / nytimes.com / June 7, 2019
“Robert Herr blames himself for what was his worst real estate investment. As a mortgage broker and real estate agent, he said, he should have known better than to buy a quarter-share in a beachfront condo.
But like many others before him, he could not resist the siren call of sea air and an ocean view, all without the costs and aggravation of owning an entire piece of property himself. Instead, Mr. Herr could buy 13 weeks, drive the 90 miles from his home in British Columbia to use the weeks he wanted and put the rest of the time into the rental pool to cover his costs.
Or so he thought. Most years, Mr. Herr and his wife cleared a couple of hundred dollars more than they paid in dues and maintenance. But they started to think the underlying investment, those 13 weeks, was losing value.
When Mr. Herr sold his share in May, for 75 percent less than he had paid for it, his suspicion was confirmed, and he was furious for buying it in the first place....”
The Beach Club Resort in Parksville, British Columbia. Robert Herr, a mortgage broker and real estate agent, bought a fractional share of a condo at the resort, but later sold it for 75 percent less than he had paid for it.
Photo Credit: Lindsey Blane for The New York Times
https://www.nytimes.com/2019/06/07/your-money/fractional-real-estate-risks.html
By Paul Sullivan / Your Money / The New York Times / nytimes.com / June 7, 2019
“Robert Herr blames himself for what was his worst real estate investment. As a mortgage broker and real estate agent, he said, he should have known better than to buy a quarter-share in a beachfront condo.
But like many others before him, he could not resist the siren call of sea air and an ocean view, all without the costs and aggravation of owning an entire piece of property himself. Instead, Mr. Herr could buy 13 weeks, drive the 90 miles from his home in British Columbia to use the weeks he wanted and put the rest of the time into the rental pool to cover his costs.
Or so he thought. Most years, Mr. Herr and his wife cleared a couple of hundred dollars more than they paid in dues and maintenance. But they started to think the underlying investment, those 13 weeks, was losing value.
When Mr. Herr sold his share in May, for 75 percent less than he had paid for it, his suspicion was confirmed, and he was furious for buying it in the first place....”
Photo Credit: Lindsey Blane for The New York Times