Creating a Fractional Cottage

Creating a Fractional Cottage If you have searched this site and explored your options for fractional cottage ownership in Ontario you will have discovered that the industry is primarily resorts created on a single piece of land.

There are a multitude of reasons the industry works this way:

Cost effective for the developer:
  • They have only one location and one piece of land to develop
  • Can sell individual cottages before moving onto the next
  • Easier to gain development financing as they can move in stages
  • Ultimately the profit margins are excellent to outstanding

    Fractional Ownership of Existing Cottages

    The creation of this system is extremely complicated. How do I know this, it is a project I have worked on for several years! As such I have contacts through the industry and am probably one of the foremost experts in setting up a fractional program for existing waterfront properties and cottages...as I think I have hit every single brick wall possible.

    The most prevelant issues are:

  • Fractional development financing through conventional sources are non existent
  • Purchasing a cottage through an investor or investment sources increases the selling price dramatically
  • Other issues that hinder a formal system being developed

    Moving Forward with Shared Ownership Cottages

    There are two systems that now are being offered for the creation of a fractional system
    1- Joint Ventures- this system allows each owner equal ownership rights to a property
    2- Owner Sales-