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-