With the Puerto Peñasco real estate market on fire and prices continually rising month over month, consumers are now looking for ways to participate in the market that allows them the benefits of ownership but at a fraction of the price and that solution is known as purchasing an Equity Share or Fractional Ownership.
Purchasing an Equity Share is perfect for those on a limited or smaller budget but still want to own a piece of paradise here in Puerto Peñasco. With an equity share you are buying the rights to real estate but are doing so on a percentage basis or a share of the property’s title.
A typical share for sale on the real estate market for example could be a 1/8 share which means you would be a 1/8 owner of a fabulous beach property and get access to use that property for up to 6 weeks a year on a rotating schedule decided by the collective owners. Another common share for sale would be a 1/4 share where you would get access to the property once out of every 4 weeks for example.
There are many benefits to Equity Share Ownership and the most obvious benefit is owning a fully furnished, highly desirable vacation property for only a fraction of the cost! You share the expenses with the other owners so that means you spend less on maintenance, property taxes, HOA fees, etc. A common arrangement among owners is having a dedicated Property Manager that ensures the home is always in good repair and is cleaned between states. When it’s your time to use the property all you do is arrive and enjoy yourself!
There are costs with an Equity Share to include the initial purchasing of your Equity Share which can range from $50,000 to $120,000 depending on the home, size, proximity to the water, size of share etc. Besides the initial cost to purchase the Equity Share, owners pay a month or quarterly fee depending on the operating agreement that is in place. This fee covers everything including taxes, cleaning, repairs, maintenance, utilities, and property management. The only other cost could be a special assessment fee if a large or major repair was needed, or an upgrade needs to be made. In that case you would split the fee according to your share, 1/4, 1/8, etc.
A good example of an Equity Share for sale would be Casa San Miguel (MLS #21-164), an oceanfront hacienda-styled home lining the pristine shores of Playa Encanto. This Equity Share is a 1/8 ownership which gives you 6 weeks a year to use it, rent out your time for income or pass it to family and friends. Inside the 6 bedroom and 4.5-bathroom home is nothing but quality furnishings, Boveda ceilings, a huge gourmet kitchen, dining room table for ten, game room complete with a pool table, many fireplaces, custom tile work and much more. This is an excellent example of a turn-key opportunity to get a foothold in the Puerto Peñasco real estate market at a fraction of the cost of only $104,000 with financing and low quarterly fees.
Equity shares are a great way to own sought-after, ocean-front real estate at a fraction of the cost. To learn more, contact your local real estate advisor who would be happy to send you the listings available on the market.
About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and engineered renovations and a real estate advisor with RE/MAX Legacy Rocky Point. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information email him at firstname.lastname@example.org .
Purchasing an Equity Share is perfect for those on a limited or smaller budget but still want to own a piece of paradise here in Puerto Peñasco.
A good example of an Equity Share for sale would be Casa San Miguel (MLS #21-164), an oceanfront hacienda-styled home lining the pristine shores of Playa Encanto.
There are many benefits to Equity Share Ownership and the most obvious benefit is owning a fully furnished, highly desirable vacation property for only a fraction of the cost! (Photo Courtesy of MLS # 21-164)
There are costs for an Equity Share can range from $50,000 to $120,000.