The Second Home Solution....

... means having a Second Home Lifestyle without Second Home Headaches.

Custom Selection

Take a deep breath and relax, knowing that your best interests are uppermost in the selection of fractional homes available through My Waterside Second Home’s “Portfolio of Fractional Homes”. You’re selective, and so are we. What’s important in buying a second home in the beautiful beach and intercoastal areas of West Florida?

• The location should be an established leisure destination with a strong real estate market.
• Properties must meet established criteria for selection and inclusion, far more than just curb appeal, an enthusiastic description, or a pretty picture.

• Properties must pass an engineering inspection and a four point insurance inspection.
• Property fractional price is based on an objective third party appraisal.
• Properties are denied inclusion in the Portfolio if they do not reflect the best of the lifestyle choices, like poor quality of ongoing maintenance, inappropriate finishing details, insufficient reserves, lesser quality view, or insufficient waterside home safety features.

• Properties are selected by a fellow owner based on knowledge of local issues.
• The fractional property is in compliance with all local building regulations and condominium stipulations.

Selecting a location includes not only identifying the most appealing home, but also determining the proximity to activities that interest owners. In a waterside destination location, an amenity is what’s there within walking distance, like the grocery, restaurants, beach, and entertainment.

Certain homes have been selected to be the product: waterside real estate in a prime location, by the slice. And now our services: we specialize in customized matching of available properties to your needs and desires by finding the appropriate second home for all our owners, and then managing that ownership interest efficiently and effectively.

Affordable Luxury

Fulfill your luxury property dream for a fraction of the cost…. have Paradise on your own terms

An entire fractional property would be out of the price range of many individuals, but because ownership of the home is divided among a small group of people, this upscale second home lifestyle becomes affordable. 

What does a fractional real estate interest cost? Prices vary based on the size, amenities and location of the individual property as well as the number of fractional pieces per property, ranging from 4 -12. Homes are usually more expensive than condominiums, and properties on the sand are usually more expensive than on the intercoastal or canal access. Depending on your lifestyle choice, your individual purchase cost may vary from about $60,000 to $125,000 or more. Compare this with the cost of these top-of-the-line homes if purchased outright as wholly-owned vacation homes.

Not a Time-Share

The real estate family of shared ownership and use includes four distinct categories at different quality and price levels:  

1. Timeshares
2. Traditional Fractionals
3. Private Residence Clubs
4. Non-equity exclusive Destination Clubs.

The Traditional Fractionals offered by MWSH may be confused with Timeshares because there are similarities, such as being shared with family and friends, sold, or left to someone in a will. But fractionals don’t really compare.  Fractionals are far more exclusive and include many more luxury amenities and services than timeshares. They tend to be larger homes, usually three to five bedrooms or to be part of an exclusive condominium building complex. While Timeshares are usually for just 1 or 2 weeks per year, Fractionals through MWSH offer from four to 24 weeks, depending on the property. Major differences include:

Purpose
Fractionals, available at a variety of quality levels, are a commitment to a leisure lifestyle in a specific desirable location to which one wants to return periodically. However, whether deeded or right to use, a timeshare is really a "pre-paid" vacation plan to be used or exchanged to varying locations.

Price
A major difference between fractionals and timeshares is price. Timeshares can be bought for a few thousand dollars and are usually shared among many owners, while fractionals cost from about $40,000 to more than $1 million, and the number of owners may be as few as four but no more than 12.

Customer Profile
A fractional ownership purchaser is a second home buyer who probably is not interested in a timeshare and who has already made a commitment to maximize a leisure lifestyle. Timesharing is a vacation product for the broadest segment of the population.

Quality  
Sharing a waterside home in a world-class destination with local owner management brings peace of mind – knowing that a fellow owner is watching out for your welfare, and that your space will be shared by others of similar tastes and means. But Timeshares come in red, blue, and white weeks,   because some areas and times are just not that attractive, causing problems in getting desirable reservations for exchanging.

Exclusivity
There are a limited number of fractionals on the worldwide market. Most likely, that number will stay small because fractionals are built only in the very best, most highly desirable locations. Therefore, demand outpaces supply and results in property appreciation.  Fractional real estate ownership properties are typically located in world-renown, resort locations where prime real estate is coveted and in extremely short supply. The residences are characteristically larger and have far more luxurious finishes and furnishings than timeshare accommodations.

Financing
Banks and mortgage firms consider fractionals to be appreciating assets and will often treat them like any other second ­home purchase. Fractional buyers either pay cash, use a home equity loan, or get a mortgage, which will carry slightly higher interest rates and require a larger down payment than a loan for a primary residence. Obtaining a bank or mortgage company loan on a timeshare is difficult. Rates are high regardless of how good your credit is because most timeshares depreciate over time. Consequently, timeshares are often financed in-house because financing with a bank or mortgage company is difficult.

Appreciation
Why do fractionals tend to appreciate while timeshares usually depreciate? There are several reasons. First of all, there are a very limited number of fractional opportunities on the market, whether in resort areas, resort developments or in private residence clubs.  The number will stay small because the emphasis is placed on building only the best, using the most highly desirable locations, or accepting only properties in superior condition. When demand outpaces supply, the result is property appreciation. Currently, demand exceeds supply with continuing appreciation for fractionals and depreciation for timeshares which are far more common. About $25 million in fractional inventory changed hands last year through resales. Most of the secondary market fractionals sold at a higher price than for what the owner purchased it from the developer.

With fractionals, more of the buyer's dollar goes to high quality finishes and "bricks and mortar" whereas for a timeshare 40-50% of the cost is in sales commissions and marketing expense instead. Furthermore, timeshare values have historically been poor because of the large number of resales on the market, not to mention a continuous stream of new developments.  They are hard to sell and if you buy a timeshare you’re likely to have it for life, whether you want to or not.

Your Co-Owners

Like you, fractional owners want to use their money wisely, appreciate being in beautiful surroundings, and value the waterside second home lifestyle of their dreams. A recent survey by Economic Research Associates analyzed responses from fractional real estate owners throughout the United States. Of customers who already own fractionals, over 89% owning the traditional fractionals report that they are satisfied with their purchases, noting that the opportunity to own a high quality product in a desirable resort area at a price less than whole ownership was a significant factor for them. Further findings show that:

1. The fractional market is dominated by higher-income young retirees and Baby Boomer Households. 75% are between the ages of 45 and 64.
2. 82% indicated the fractional interval fitting their use as being essential or very important in their purchase decision
3. 50% are couples with no children, 43% couples with children
4. 35% would purchase additional fractional real estate ownership interests.
5. 55% earn in excess of $250,000 yearly
6. 45% have a net worth in excess of $3 million

Among households with incomes of more than $150,000 who do not currently own a fractional interest of resort real estate, half have heard of the concept and more than three quarters of the households think it is a good idea. Even those who can afford to purchase a one or two million dollar vacation home may be able to use the property for only a month or so during the year, and they might feel that it is not a wise investment. Fractionals allow owners to decide how often they want to use the property, and with how many co-owners.

Local Management 

The Florida MWSH management team is headed by Marge Coffing, who has over 20 years of experience in real estate management. www.margecoffing.com. MWSH provides a hassle free home for fractional owners, so you’ll never need to worry about the repairs or maintenance of your lifestyle second home. You can relax because someone else is dealing with management details. If you choose a condominium, an on-site professional management company takes care of all maintenance issues. If you choose a single family home, our bonded staff will perform all exterior maintenance on a regular basis.

In addition, MWSH  will provide owners with a variety of optional services personalized to your needs. Most fractional owners find that time is their most valuable commodity. MWSH wants to make available whatever is needed for experiencing and enjoying your home away from home. Thus you may choose among services such as a “pre-arrival pantry stocking” of basics for the first four days, a housekeeping package, a grocery shopping package, offsite storage options, packing/unpacking assistance package, airport shuttle and car rental arrangements, a sight-seeing package, a tour guide package, or other possible options.

FAQ for Owners

What is fractional ownership?

Fractional ownership occurs when an expensive asset is divided into percentage shares and those shares are sold to individual owners. A fractional share gives an owner certain privileges, such as a number of weeks of using the asset. Typically, a company manages the asset on behalf of the owner, and owners pay fixed fees for the management in addition to the cost of purchase.

MWSH believes this concept is perfect for the Pinellas beach communities and is offering the residential asset of fractionals located either on the beaches or the intercoastal. Owners will purchase an “undivided fractional fee-simple interest” in a specific condominium, estate, single family home or townhouse which has been adapted from whole ownership.  For condominiums, depending on the particular requirements of the master building or association, the product offered will be either a 1/4th up to a 1/8th deeded fractional interest with owners abiding by a co-tenancy agreement. Ownership costs are based on use and shared among the owners. Some people prefer to share their space with a smaller group of co-owners – and the larger your share of the property, the larger your share of the profits as it appreciates.

Why are fractionals becoming so popular?
You may have read recent articles in CNN Money, The Chicago Tribune, Robb Report Vacation Homes, Business Week, Time, NY Times, Yachting Life, Realtor Magazine, Escape Homes, International Herald Tribune, and Wall Street Journal …all have testified to the phenomenal growth of fractionals in the market place.  Fractionals are the fastest growing sector of the shared ownership of real estate industry, growing over three times faster than the industry as a whole.

It’s an alternative for people who have considered second home ownership but have realized that they wouldn’t use it for more than a few weeks a year.   Fee simple deeded ownership gives ownership, use, and the luxury of an expensive home without tying up anywhere near dollars necessary for whole ownership. With a fractional, you don't have to worry about maintenance, repairs, or other ownership responsibilities that can get overwhelming with a second home. All of these services are included in your annual maintenance fee, which is similar to membership fees paid by those who belong to a homeowners association or gated community.

What are some other ownership benefits? You’ll have a beautiful second home, tastefully furnished, where family members can join you. Maybe you’ll use it for special occasions and special family times.  It’s a nice present to be able to give your children a week at the house for their anniversary or birthday. Most importantly, you’ll be relieved to know that your beautiful second home will never be put into a rental program. Fractional ownership allows you to decide how often you want to use your Smart Second Home, with packages usually ranging from six weeks to 6 months and prices varying accordingly.

How does it work?
With a fractional second home you’ll purchase a deeded share of your chosen slice of paradise. You have the right to use the property for a certain number of weeks or months each year.

1. To start the process, first select your lifestyle preference from the eight lifestyles offered. (Sand Castles, Walk to the Beach, Dock & Davits, Deep Water Slips, Poolside Paradises, Amenities Galore, Small & Lovely, Gotta Golf) Then, contact us by email or phone, and let us know if you have any particular needs or requests.
2. Review the current offerings available in your lifestyle preference in our Portfolio of Waterside Homes, which is continually expanding and changing.
3. Send a 5% reservation fee identifying your fractional selection and we’ll send you the appropriate reservation package and necessary forms.
4. When you receive your complete information about your selection, review it carefully with your advisors.
5. You’ll be buying a specific annual time period when you purchase, assuring you control of your schedule. Some exchange may be possible with your co-owners, depending on the location of your choice.
6. Select your method of purchase, whether cash or financing, and let us know. An additional 5% at this time is sent to the closing agent or Title Company to confirm your reservation and set a closing date.  We’ll coordinate the purchase with the title company or closing attorney and your co-owners, with each owner buying their slice from the local owner/manager. Your ownership will be evidenced by a deed to real property.
7. To buy a fractional, you pay a one-time purchase price and then a yearly upkeep fee that covers all of the expenses associated with property ownership, its use and services.
8. After five years, MWSH will evaluate the market and the owners will have the opportunity to sell, with group consent, and then have the right to reinvest in something else.

How much will my fractional cost?
The size, location, number of co-owners, and specific amenities of your lifestyle selection all affect its cost. The pricing of the fractionals is weighted, with time between November and April being slightly more costly.  Time slots in most cases are aligned with the same calendar as internationally accepted timeshare weeks.

MWSH as the private developer is responsible for the overall management of the property, and in some cases there will be a third party Homeowners’ Association. An annual budget is established and owners will make annual or quarterly payments to cover utilities, insurance, taxes, reserves, and other costs.

To purchase a deeded fractional real estate interest, you pay a one time purchase price. An annual budget will be established and owners make an annual payment to cover all of the expenses associated with property ownership, use and services, including utilities, insurance, taxes and other costs.

Where do closings occur?
This will depend on your method of financing. If you’re paying cash, your funds can be deposited into the escrow account of our local title company or attorney. In this case, closings can be handled securely by mail or fax both nationally and internationally, and you do not need to be present.  If you’re from a state other than Florida and using a mortgage to finance a portion of your purchase, the fractional lender must be licensed both in Florida and your home state. In most cases you would need to be present at the closing.

What’s the legal process?
 All MWSH owners can be reassured that documentation to protect their investment and future lifestyle will be used throughout the purchase and ownership period to protect them and all co-owners. The heart of an owner’s rights and responsibilities is contained in the Co-Tenancy Agreement for your fractional property.  

Is it “Deeded” property?
Each owner receives an individually deeded slice of prime property.  A deeded property gives your investment a better chance of appreciation and allows you to bequeath or “will” it to a family member the same way you could a whole-ownership property, subject to first offering it for purchase by your other co-owners. An actual real estate investment comes only with true deeded ownership.

I’m paying cash. What happens if someone else’s mortgage gets foreclosed?
Someone else’s default would not affect any other co-owner of the fractional. A lender would be acting against only the defaulted portion. This illustrates the reason that those choosing to finance their purchase must have excellent credit and provide a significant down payment. If that portion were to be resold, co-owners would have the first right of purchase.

How many other owners will there be?
Each home has a limited number of owners. Typically fractionals are split into from 4 to perhaps 12 shares, which means that arranging time at the property is less competitive than other types of shared ownership properties. There is no requirement for you have to have contact with the other owners, since the local management contact is MWSH.

How big a fraction do I need?
If you’re the type of person who prefers to share your space with a small group of co-owners, you may wish to have a larger share of the property and of the profits if it appreciates. In a fractional, you can build up equity and later sell your interest in the property.

What is MWSH?
The private developer,  My Waterside Second Home, LLC,  is both offering a product - a fractional ownership in waterside real estate in a prime location - and providing consulting services, the custom selection of the appropriate second home for the client as well as the local management of that ownership interest.  In addition, fractional owners choose from a variety of optional owner packages including housekeeping and shopping, based on individual second home owner’s needs.

Can I rent out my fractional?
No, the fractional you purchase as your second home is exclusively for your use or use by your family and friends, or use by other owners. It may not be used as an investment for rental use by non-owners and others.

What are the tax implications?
Each residence would be 100% owner occupied, and managed locally by the owner/manager. Fractionals are considered a second home purchase with interest and equity benefits that go along with ownership. Consult your tax advisor for specifics on how your financial picture will be affected.

How does my fractional differ from a private second home club or private residence club?
Fractional owners prefer to enjoy the selected destination home annually. Members of a PRC own a diversified property portfolio and have access to all the residences, such as mountain properties, city properties, and beach or golf destinations.

How does my fractional differ from a condo hotel?
While some fractionals may be similar to condo hotels in that they can be put into a rental pool when owners are not using the property, your home with MWSH will never have tenants in the property, only other property owners or their guests during their specified time. Also, the maximum floor space permitted in a condotels does not meet the minimum criteria acceptable for a MWSH fractional home.

What if some of our friends want to buy a share in the same lifestyle property as ours?
Wonderful! This can be pleasant for all parties, as well as financially advantageous. Anyone bringing other buyers will enjoy a 5% discount on the first own fractional piece. You may wish to join some friends from your neighborhood, church, or various clubs, with whom you’d like to share a second home.