FAQ ... the advantage of Half Ownership!
- What is Own-Half ownership?
- Why was the Own-Half concept developed?
- What are the advantages of Own-Half ownership?
- How is this different from a timeshare?
- How do I know if I am a good candidate for Own-Half ownership?
- Do I have to find a co-owner for my property?
- What is the Buyer Match Plan and how does it work?
- How will I know if the co-owner is right for me?
- What is the Tenants-in-Common (TIC) agreement?
- What is covered in the TIC agreement?
- Is the OwnHalf TIC agreement available for purchase?
- How much time will I be able to use at my property?
- What if things don't work out with my co-owner?
- What if my co-owner defaults on their payments?
- Can we rent our property out when we are not using it?
- Who will take care of the property when we are not there?
- How do I find the right property?
- Will my property go up in value?
- What is the tax law governing Own-Half ownership?
- Can I purchase a Own-Half property as a 1031 Exchange?
- How do I finance a Own-Half purchase?
- I own a vacation home, but really have no use for it for the winter ... can I turn it into a fractional?
1. What is Own-Half ownership?
Here are some examples of a Own-Half arrangements;
13. What if things don't work out with my co-owner?
The Tenants-in-Common agreement gives each owner the first right of refusal if one of the owners wants to sell. Options include selling your Own-Half to the other owner, putting it on the open real estate market through a local REALTOR®, or using the OwnHalf.com marketing program to sell your half interest in the property on your own.
14. What if my co-owner defaults on their payments?
The Tenants-in-Common agreement provides details and secured assurances on default issues. Each co-owner will be required to place one year of common expenses into an interest bearing reserve fund account that can be used in the event of a default in payment. But that does not mean the monies used in the reserve fund does not need to be replaced. If the reserve fund is not replaced by a delinquent co-owner after the third month, then his right to use the unit will be forfeited and his fractional share will be placed on the market for sale. This has been inserted for the benefit of both owners and protects the other owner from a non-payment of any kind by the delinquent owner!
15. Can we rent our property out when we are not using it?
Yes, if both parties have previously agreed to it in the Tenants-in-Common agreement and the location of the property is zoned for rentals. OwnHalf.com will help you find a property management company or give you the tools for a Rent-by-Owner scenario.
At your request, you may enter into an OwnHalf plan that does not allow the property to be made available for rental ... a condition that must be agreed to by both parties.
16. Who will take care of the property when we are not there?
If a professional property management company manages the property, they will take care of the property in your absence. If not, there are usually housekeeping services in resort towns that can be hired to look after your property. OwnHalf.com will help you locate those services where ever you plan to settle your vacation dreams. Also, don't forget, when its time to leave the other fractional owner will take care of the property and keep it secured.
17. How do I find the right property?
OwnHalf.com has its finger on the pulse of the luxury vacation home market, cottages, chalets, condominiums, Yachts and Houseboats continually scouting the U.S., Canada and Europe for those one-of-a-kind, hard-to-find, signature properties that have made OwnHalf.com one of the most sought-after sources for luxury second homes. It does so through a network of realtors. Based on the criteria collected from the Client Profile Survey, Own Half.com will access its extensive network of properties and licensed real estate brokers to uncover the vacation property that is just right for you. Vacation properties from 100,000 to 5,000,000 plus ... we will find just what you are looking for.
For OwnHalf sailors ... a fractional plan for a small $20,000 watercraft to a 5,000,000 Mega Yacht.
Fractional boat plans for personal use and for charter income ... there are many possibilities and many tax advantages!
18. Can my property value increase?
Yes, but as with any market, it can go up and down. OwnHalf.com will gather information on each property so that each buyer can make an informed decision. OwnHalf.com is especially adapt to locating properties in up and coming areas that offer the greatest potential for return on investment. Now is the time to buy property and increase your portfolio through our OwnHalf program.
19. What is the tax law governing Own-Half ownership?
The tax laws are the same that govern any real estate purchase. You will need to check with your accountant to determine the advantages of using your purchase as a second home or as an investment property. Depending where you reside, there may be certain tax advantages if the property is used for rental income as a business.
20. Can I purchase a Own-Half property as a 1031 Exchange?
Yes. Depending where you live and where you intend to buy your OwnHalf vacation property. Tenants-in-Common properties are often used in 1031 Exchanges. With this type of property, you can enjoy your exchange as long as you follow the rules established by the government on investment property for interesting tax advantages.
21. How do I finance a Own-Half purchase?
The best way to finance your purchase is with a home equity loan against your primary residence. You can also buy an Own-Half plan with a low rate mortgage, or enter into a vendor finance arrangement. Still the best arrangement is full cash payment with no financing options. Many purchase and finance options are available, providing they are mutually agreed to by both parties and based OAC. You decide on the finance plan whether it be a cash purchase or financed.
22. I own a vacation home, but really have no use for it for the winter ... can I turn it into a fractional?
Absolutely! That's what many people do. Selling half of your property still allows you to use it for the time you want while eliminating some of the costs associated with full ownership. OwnHalf.com can help you locate a buyer through its Buyer Match Plan and can assist in putting together a winning marketing plan. All the contracts are free when you order your marketing kit for only $375.