Fractional Ownership Cottages -The Cost of Quarter Share Ownership Cottages

To explain the costs of the purchase and setup of a cottage property in the easiest possible terms.

Remember, these costs are dependant on the property selected and are variable.

The process is explained in the following steps.

The Property - In Simple Terms:
  • Property Purchased for $400,000 - 4 Owners Equally pay $100,000

  • Property Purchased for $500,000 - 4 Owners Equally pay $125,000

  • Property Purchased for $650,000 - 4 Owners Equally pay $162,500

Note: These costs are the property purchase only.

What is not included are the new furnishings, any improvements, reserve funds, the legal agreements, land transfer tax and the company fee for the creation of the system.

The Costs of Setup for a $500,000 Property!

  • Company Fee - *Introductory Pricing

  • New Furnishings- living room, kitchen, laundry, beds, patio, BBQ etc. - $25,000

  • Inspections, Legal Work etc- $20,000

  • The cost of initial improvements (if necessary) - for example $20,000

Round the costs to $100,000 (to keep it simple) or $25,000 per owner.

Total Cost of Ownership $150,000

* Note the company fee is introductory, this is for pre-signed buyers only.

The Reserve Funds

Properties all have cash sitting in the bank to ensure all bills a paid promptly and there is never a cash flow issue. The management is through an accounting firm hired by the company.

The Reserve Funds Include:

  • One year of expenses, to be estimated at time of closing and then adjusted as required

  • Accumulating reserve fund for future repairs and replacements.

  • Assume a total fee of $20,000 or $5,000 per owner

These funds are held in the property bank accounts with a minimum balance remaining at all times.

All property expenses are tracked through a professional property management software management program. Purchased from a Florida company and designed for absentee owners.

This System Covers Every Item Including:
  • When service people have completed work

  • Detailed expense reports

  • All property details, records etc.

  • Bank Accounts and Balances

  • Individual owner passwords

All owners have constant knowledge of all expenses, bank accounts and services regarding the property.

Total Cost of Ownership Including Reserve Funds $ $155,000

Property Expenses

As stated above, there is reserve funds in place for all assocaited expenses of the property. Bills for the properties can include heat, hydro, taxes, insurance, lawn care, snow removal, telephone (if no cell coverage), internet, docks in or out, spring and fall cleanup, maid service, bill payment program and annual scheduled maintenace.

An estimated monthly cost would be just under $500 for all services (dependant on property)

Peter Rollings, Broker, Cottages and Waterfront homes


3276 MacDonald Island Road

3276 Macdonald Island Road Big Rideau Lake

1000 ISLANDS/ St. Lawrence River
1473 North Shore Road Kingston

1473 Shore Road Kingston

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