Desert Quarters

Welcome to Desert Quarters

Have you ever wondered what it would be like to finish up work Friday afternoon, hop a plane and find yourself enjoying sauna-like weather, beneath a row of palms gently swaying in the breeze, with a margarita in hand? Perhaps you'll just stay in your Las Vegas luxury condo for the weekend, or maybe you've booked several weeks or a month. For some of us, the illusion is not enough and we've dreamt of something more – of actually owning a stunning million-dollar property, where you could whisk the family away on an idyllic weekender, host the next family reunion, or just take a solo trip to fish, kayak and recharge your batteries. This is your familiar piece of paradise: Welcome home!

What Is a Shared Ownership / Fractional Property?

First of all, let's talk about what Shared Ownership is NOT. Shared Ownership is NOT a Timeshare! It's true that timeshares were the rough draft of the shared ownership concept, but investors and realtors recognized an emerging demand for affordable luxury real estate with a desirable location and all the amenities, but none of the maintenance or hassle.

With a timeshare, you're only buying time. Fractionals give you a title, deed and equity.
With a timeshare, you're only getting 2 weeks. Fractionals give you 4-13 weeks.
With a timeshare, you have to find people to trade or exchange vacations. Fractionals give you a familiar sense of home and you don't have to negotiate with other buyers to enjoy your property.
With a timeshare, property rights expire at the end of the contract. Fractionals are legally yours!
With a timeshare, you'll have basic hotel lodging with maid service at best. Fractionals have luxurious furnishings, amenities and services!
With a timeshare, your resale value is low, sometimes earning you as little as 10 or 20 cents on the dollar. While no investment can be guaranteed, studies show that fractional resale value is more likely to appreciate over time. (For instance, Hobson Real Estate Advisors' survey found that the Deer Valley Club in Utah saw a 16% increase each year since 2001 and the Timbers Club Colorado fractional condos are 50% higher, with a waiting list of potential buyers!)

What Are The Benefits of Shared Ownership?

How many people do you know that purchased a boat, a motorcycle or some other big-ticket item – only to have it sitting idly 360 days / year? Of course, the desire to own that particular object was overwhelming and many a daydream was spent envisioning how it would be used. Yet in the end, the actual usage didn't justify the cost. This is the problem with many secondary homes. On average, people spend 4-6 weeks in their secondary properties, which hardly justifies a $500,000 - $1 million price tag.

Yet, they understand the value of investing, they know that real estate has traditionally been considered one of the most secure investments one can make and they just so desperately want a piece of the pie in a coveted region. But why not just pay for the time you're actually there and let someone else foot the bill for the time you're not there? In places like Costa Rica, investment property home owners were shocked to find squatters living in their dream homes because there was no one watching the home for the other 50 weeks of the year that they weren't there! With shared ownership, you'll have peace of mind knowing that a management company is looking out for your investment when you're not around. Sure, there'll be another family there when you're not, but as soon as they leave a professional cleaning crew will make the house impeccable, just as you remembered it. In a nutshell, shared ownership makes sense because it allows people to live the dream, affordably and sensibly.

Additionally, shared ownership offers you:

The ability to purchase more space (and more opulent space!) in a community's most desirable location, at the price of a small condo.
Worry-free ownership, with professional management taking care of all your day-to-day needs, allowing you a carefree vacation.
A higher level of service comparable to resort style living, with concierge and maid services to ensure that the greatest effort you make is indulging yourself.
Shared expenses for furniture, furnishings, outfitting the property, maintaining the property, taxes, insurance, utility bills, mortgage bills and legal costs!
Diversification of your real estate portfolio, appreciation of equity and more assets!
A high resale value in a booming niche of the real estate industry!

How Does Shared Ownership Work?

Part of the reason shared ownership has done so well in recent years is the increasing understanding about how the process works. Depending on how the property is divvied up, you could own anywhere from 4 weeks to 3 months.

Usage: When you buy your slice of the American dream, you and the other owners will decide upon a written usage agreement. The options here are plentiful! Many owners choose to have a rotating calendar so all owners can enjoy each season in their secondary home. Some owners decide to submit written requests for time during selected weekends so they can have access to their property at any time of their choosing. Some fractional owners feel it's fairest operating under a rotating, lottery-style system for holiday usage.

Cleaning Service: Cleaning fees are automatically factored into your monthly or quarterly dues, so that whenever a new family arrives, the home will be cleaned, stocked and arranged in flawless, five-star condition.

Accounting: Two months' worth of expenses will be held in a communal escrow account to be used for repairs, bill pay and all other costs associated with home ownership. You'll be billed quarterly and sent detailed statements. Everyone will hold their own titles and deeds.

Voting Rights: All owners have full rights to make decisions governing their properties. The management company acts as the arbitrator, so you'll only deal with your management professional, rather than the other owners. Your managers will work for you to ensure that everything is as stress and hassle-free as possible. After all, you hold the deed!

Who Buys Shared Ownership Properties?

Middle Class America: Want to own a piece of the American Dream? You don't necessarily have to be a millionaire to live like one. Many people are surprised to learn that they could hold the title and the deed of a million-dollar luxury estate for as little as $250,000. The low upfront cost, minimal annual dues and equity appreciation entices many sensible middle class buyers who would like to live like a King – without the hassle or the high price tag.
Upper Class Entrepreneurs: However, if you are a millionaire, you can feel more at ease with your investment, knowing that you're only paying for what you're actually using. Most of us don't have time to micromanage a secondary home. What a shame it would be to come to your Las Vegas mansion, only to find that everything is dusty, there's been storm damage to the roof and utility bills accidentally went unpaid! With shared ownership, your secondary home will be professionally managed to ensure that your vacation is spent carefree!
Seasonal Employees: If it's your dream to be a ski instructor in Aspen or a Las Vegas poker player during the busy travel season, a shared property may be ideal for you! Since you hold the deed and title, you can also come back to vacation even when you're not working there!
Investors: Perhaps your accountant mentioned you should consider 'diversifying your personal investments.' It's sort of like the concept of a mutual fund, where you put many irons in the fire to achieve overall success. When you become a home owner, you're also inadvertently becoming an investor. By spreading your dollars among several different properties, you can lower your risk, see your house equity appreciate over the years and delve into new markets, thus diversifying your real estate portfolio (and your vacation options). While no investment's success can be guaranteed, Steve Dering of DCP International assures, 'Good real estate will always do well over the long haul.' With fractional ownership, even if your market sees a drop in price, your risk will be downsized, with multiple owners all sharing part of the loss. By contrast, if your market appreciates, all owners will share the good fortune.
Ex-Renters: No one likes depending on a renter to offset vacation property expenses. Shared ownership is an easier way of managing a secondary home. All the owners put money into an escrow account that is used to pay for maintenance, maid services, taxes, utility bills, insurance and association fees. Your personal property managers just send you quarterly statements and check-in with you to see if you'd like any repairs or upgrades done.
Families and Friends: Whether you were a fan of the hit sitcom 'Friends' or not, you likely at one point considered: What would it be like to own a place with all my friends? Or perhaps you would feel most comfortable owning a property with your best friends, your siblings, your parents or your cousins. Imagine the events, birthday parties, weddings, vacations and family reunions you could hold there, at any time!
Baby Boomers: I know it's cliché, but if any one characteristic defines our generation, it's our exertion of purchasing power and our ability to shape the economy. Having been the children of Great Depression era parents, many of us grew up very frugally and vowed that when we had our own careers, things would be different. Whether it's that massive surround sound stereo system, the shiny red Ferrari, the i-Phone or the Spanish-roof-tiled Colonial estate, we enjoy the fruits of our labor and the success we've achieved.
Environmentalists: I know what you're thinking… 'How is owning an enormous luxury estate environmentally friendly?' The truth is, many people are thinking about environmental impact these days. Imagine the space, resources and materials that would be saved if six families owned the same home, versus six homes?
Golfers, Surfers, Boaters, Gamblers, Hikers and Ski Bunnies: According to the Ragatz Associates annual survey, 56% of existing and planned shared ownership properties are in ski resort areas, 42% of shared ownership properties are located near golf courses or on the ocean, and the remaining percentage are in urban metropolises like Las Vegas, New York City, Chicago and San Francisco.

How Shared Ownership Can Help Realtors:

Here's a statistic that'll blow your mind: On April 2, 2008, the National Association of Realtors issued their report of 2007, stating that the sale of timeshares fell 36%, the sale of primary residences fell 10% and the sale of investment properties fell 18.1%. Times looked bleak for many realtors who wondered what they were going to do with leftover inventory. However, a break in the clouds came with the opportunity of shared ownership. In their annual survey, Ragatz Associates found that shared ownership sales actually went UP 8.2% in 2007, with combined sales of $2.3 billion!