Archives
March 2008
3/16/08
3/16/08
3/16/08
Checks in the City: A Fractional Resurgence?
3/16/08
3/16/08
3/16/08
Sunday, March 16, 2008
2:37:00 PM EDT
Fractional Ownerships Marketed in NYC, Paris, Etc.
At AOL Real Estate, we've looked at fractional ownership in the past. Possibly because buyers are less likely to want to cover multimillion dollar condos as a pied a terre or second home, this post discusses opportunities to "own" a portion of the weeks in luxurious condo-hotels such as the St Regis in Manhattan. Particularly for euro-toting foreign buyers that visit U.S. cities on a frequent basis (say six or eight times per year), this seems like an interesting idea.
"St. Regis rolled out their fractional development in 2006 on several floors of their midtown hotel. There are studios, and one- and two-bedroom units for $300,000 to $750,000 a share with 28 days of use a year."
For example, if you try to get a three or four star hotel room in Manhattan during certain weeks of the year, such as right before the Christmas holidays, you can expect to pay three to five hundred dollars a night if not more, so a week is costing you $2,100 to $3,500 as it is. At the low end, you can probably get some nights for $200. So 28 nights a year at $200 a night is $4,800, and $14,000 at the $500 level.
If you financed that over 30 years, a $300,000 fractional at $10,000 per year plus interest starts to look reasonable for four weeks a year, plus assume there's at least some resale value.
As the post calls out, there can be a lot of fees involved, so at some point just getting a normal hotel room may be more reasonable, assuming my math hasn't bored you to tears.
Plus, most of us have better things to spend $300,000 on.
Written by unstructuredblog Blog about this entry |
Add to del.icio.us | 
digg this
2:37:00 PM EDT
Checks in the City: A Fractional Resurgence?
At AOL Real Estate, we've looked at fractional ownership in the past. Possibly because buyers are less likely to want to cover multimillion dollar condos as a pied a terre or second home, this post discusses opportunities to "own" a portion of the weeks in luxurious condo-hotels such as the St Regis in Manhattan. Particularly for euro-toting foreign buyers that visit U.S. cities on a frequent basis (say six or eight times per year), this seems like an interesting idea.
"St. Regis rolled out their fractional development in 2006 on several floors of their midtown hotel. There are studios, and one- and two-bedroom units for $300,000 to $750,000 a share with 28 days of use a year."
For example, if you try to get a three or four star hotel room in Manhattan during certain weeks of the year, such as right before the Christmas holidays, you can expect to pay three to five hundred dollars a night if not more, so a week is costing you $2,100 to $3,500 as it is. At the low end, you can probably get some nights for $200. So 28 nights a year at $200 a night is $4,800, and $14,000 at the $500 level.
If you financed that over 30 years, a $300,000 fractional at $10,000 per year plus interest starts to look reasonable for four weeks a year, plus assume there's at least some resale value.
As the post calls out, there can be a lot of fees involved, so at some point just getting a normal hotel room may be more reasonable, assuming my math hasn't bored you to tears.
Plus, most of us have better things to spend $300,000 on.
Written by unstructuredblog Blog about this entry |
Add to del.icio.us | digg this
