TORONTO STAR - FRACTIONAL PROPERTIES

ONTARIO FRACTIONALS INSPIRE LAS VEGAS

By R. Byrd

Imagine owning a piece of Las Vegas on Las Vegas Boulevard for only $25,000 (30 days), of Hawaii on the beach of Waikiki for $120,000 (60 days), and of Mexico for $15,000 (30 days).

Traditionally in the U.S., fractional ownership has been marketed to only the very affluent, and has not been seen as an affordable vacation home ownership for the average person. Many people in the American industry are amazed at the "reasonable" prices of fractional ownership developments in Ontario.

At R.B. Realty, the business model we are using to sell fractionals in Las Vegas, Hawaii and Mexico is based on the Ontario experience of affordable fractional ownership properties. Some of the buying motivations are definitely different - we don't have many cottages in Las Vegas, and people seem to come for reasons other than the fishing. However, offering a product that appeals to middle-income earners has created a huge interest.

In addition, Hawaii, especially the Waikiki area of Honolulu, is poised for massive growth in fractional properties. For decades, buyers from around the globe have purchased property in Hawaii, often renting out condos and homes for time periods that the owners are not using them (often in violation of regulations that disallow vacation rentals). These owners now have a way of selling and making a larger profit than that offered by weekly rental, retain ownership of the time they want to use the home, and be in compliance with the rules.

The other advantages of fractionals: paying for a property for only the time you use it, no maintenance hassles, and often the opportunity to trade properties with other owners. Today, more people than ever can take advantage of the concept.

Why introduce fractionals now? I have been a real estate professional in Las Vegas for the past 20 years, and I have seen the market boom over and over again. Las Vegas continues to redesign itself every few years. From affordable homes and condos, through the current high-rise vertical craze, the desire for Las Vegas housing never wanes.

As a broker and owner of a Sales and Marketing company specializing in new home sales, I have continually looked to the Toronto market for ideas and forward thinking in sales, marketing and design. Since the late 1980s, one of my resources there is Lawlor and Company, which is based in Georgetown. Myles Lawlor introduced our firm to a number of product designs, including affordable fractional vacation ownership.

While it has taken several years, Las Vegas is now ripe to embrace this concept, which offers advantages over time shares. A staple of Las Vegas vacation ownership, time shares constantly outperform any other vacation market for total sales. Pre-ordained for success from the days of charter excursions to Las Vegas from points around the globe offered by the casinos with comps for rooms, shows and meals, time shares have enjoyed a frenzy of interest that continues today. The downside is that as the value of Las Vegas real estate has increased, time shares have remained at face value.

Fractionals offer something different to those same individuals who now desire to move up from time shares to the next opportunity short of home ownership. While many vacation buyers are still uninterested in full ownership, everyone in Las Vegas is talking about fractionals. Realtors, investors and vacation travelers to Las Vegas are aware of this intriguing concept.

For more information, visit smartfractionals.com.

Rick Byrd is a real estate broker in Las Vegas, and owns R.B. Realty. Rick may be contacted at rick@smartfractionals.com