Half Ownership can apply to Vacation Homes in Florida beach condos, cottages and condos in Ontario's north and luxury condos in the city!
1/ What is Own-Half ownership?
2/ Why was the Own-Half concept developed?
3/ What are the advantages of Own-Half ownership?
4/ How is this different from a timeshare?
5/ How do I know if I am a good candidate for Own-Half ownership?
6/ Do I have to find a co-owner for my property?
7/ What is the Buyer Match Plan and how does it work?
8/ How will I know if the co-owner is right for me?
9/ What is the Tenants-in-Common (TIC) agreement?
10/ What is covered in the TIC agreement?
11/ Is the OwnHalf TIC agreement available for purchase?
12/ How much time will I be able to use at my property?
13/ What if things don't work out with my co-owner?
14/ What if my co-owner defaults on their payments?
15/ Can we rent our property out when we are not using it?
16/ Who will take care of the property when we are not there?
17/ How do I find the right property?
18/ Will my property go up in value?
19/ What is the tax law governing Own-Half ownership?
20/ Can I purchase a Own-Half property as a 1031 Exchange?
21/ How do I finance an Own-Half purchase?
22/ Can I take my existing home and sell half of it?
1/ What is Own-Half ownership? Own-Half ownership can be applied to cottages, vacation homes, condominiums, resorts, boats and yachts.
In a nutshell ... Own Half allows you to own 50% of the property for 50% of the use and 50% of the expenses. By co-owning or sharing your property, you not only share the costs, you are also able to develop a relationship with your co-owner and thus have more control over how your property is used and cared for.
2/ Why was the Own-Half concept developed? OwnHalf ownership was created to meet the growing demand for shared ownership of boats and vacation properties. Own-Half, gives rise to the Own-Half phenomenon, which personalizes and protects ownership in a way vacation timeshare cannot.
3/ What are the advantages of Own-Half vacation home ownership? By co-owning your vacation property, you are able to share the costs associated with owning and managing your home. You also have the opportunity to buy something more selective, refined and in a more desirable locale.
In addition, all OwnHalf.com properties can be fully furnished, with full-service management services available to take care while you're away, and they offer the ability to generate rental income if you so choose to enter into such a own-half plan.
Remember, you may enter into a co-ownership plan that does not permit rental of the property or that does … that’s up to you! Your own-half plan is customized to suit you and we match you with a couple who share your interests and rules of ownership.
4/ How is this different from a timeshare? In traditional timeshare developments, a buyer purchases time without ownership - a specific week or weeks - and lodging could be in many different units. When you Own-Half, owners purchase can either purchase a deeded interest in real estate which can be sold, transferred, willed, or exchanged. When property values increase you can make money if you own 50% of the property.
Or it can fall under a Tenancy in Common plan where a corporation owns the unit and each owner is simply a director of the corporation. The tenant then leases his fractional share from the corporation for the sum of $1. There are benefits to both plans.
5/ How do I know if I am a good candidate for Own-Half ownership? If you are like most people, unless you are retired, you couldn't possibly use your vacation property year-round and you don't like the idea of paying a mortgage, taxes and other carrying costs year round when you are not using it.
Your thrilled with the idea of cutting your costs in half by sharing it with a like-minded co-owner who also shares your dream, but perhaps for a different reason .... the season. You choose the summer for example because you are a boater and your family really enjoy the fun in the sun.
It is your family's favourite season without a doubt and you can't wait for the summer to arrive to spend your summer months at your new vacation home.
The other owner, they have chosen the winter and it happens to be theirfavourite season ... without a doubt! That is good news for both parties. Kind of a WIN WIN!
If your OWN HALF location is in Ontario's north country like Collinwood for example, your co-own partners may be looking forward to thick white snow falls for cross country and down-hill skiing and family reunions during Christmas and New Years away from the city.
For every sailor there is a skier and if you recognize the advantages of this ... then the Own-Half purchase plan is for you.
6/ Do I need to find my own co-owner for my property? Not if you do not want to. OwnHalf.com offers its exclusive Buyer Match Plan, a database of interested buyers like you looking for just the right co-owner to share in the purchase of their property.
OwnHalf.com will match you up with a suitable buyer through a licensed realtor whether it is for a winter or summer match in Florida or Ontario.
If you would like to arrange an OWN HALF plan outside of Florida and Ontario, then you may need to arrange for a co-owner partner on your own, but we will still make an effort for you.
Residents of Florida living inland in a house 20 or 30 miles from the beach would prefer to own 6 months of your Florida retreat in the hot summer months to get the cool breeze along the ocean shore at night while enjoying a lifestyle of sports and leisure or for a weekend getaway for professionals.
That leaves you with your prime Florida season all to yourself!
7/ What is the Buyer Match Plan and how does it work? OwnHalf.com's Buyer Match Plan was designed to help interested buyers locate their ideal co-owner. OwnHalf.com clients complete a Client Profile Survey to determine the characteristics of their ideal co-owner - desired locale, price range, tastes, interests, lifestyles.
That information is then entered into OwnHalf.com's database of other interested buyers.
Attributes are then cross-matched and clients are presented with a potential co-owner considered a "good fit". Clients can then proceed strictly "on paper" toward their purchase or can agree to contact their potential co-owners to further determine suitability.
Or you can enter into an OWN HALF arrangement with the seller / owner of the property, as they may only be interested in selling half to keep the other half for themselves. Or the property owner (seller) will agree to stay in the unit during the time not belonging to you, until another OWN HALF buyer is found.
That means you can start taking advantage of your co-ownership plan right away rather than waiting until another co-owner is found.
8/ How will I know if the co-owner is right for me? OwnHalf.com's Client Profile Survey uncovers property and personal goals, among other factors, to help OwnHalf.com make successful matches. Interested buyers can then "interview" potential co-owners via our Virtual Property Show where you can connect via online video, by phone, or in person as each party agrees.
Ultimately, you decide who offers the best fit or you can leave it all up to your real estate agent.
9/ What is the Tenants-in-Common (TIC) agreement? OwnHalf.com leaves nothing to guesswork when it comes to your ownhalf vacation home plan. The Tenants-in-Common agreement is a legal document that formalizes all legal concerns regarding rights and responsibilities of each co-owner.
The TIC is created and approved before purchase and covers everything from seasonal use and requirements and possible rental revenues to re-sale, property maintenance and repair and more.
10/ What is covered in the TIC agreement? These are just a few of the items covered in our TIC: purpose of ownership, management arrangements, bank accounts used, payment of expenses, transfer of interests, right of first refusal when selling, and scheduling rules.
11/ Is there a legal closing cost. Yes, and is generally under $1,000
Reach out to us by email for a complete cost breakdown.
Much time and work has gone into designing the right Tenancy-in-Common agreement, saving you the time and leg work and probably many hours of extra legal billing. Our TIC can speed up the process and get you into your dream vacation home much sooner.
12/ How much time and which time will I be able to use at my property? This is established up front in the Tenants-in-Common agreement. Ultimately, it is up to each co-owner to determine what plan best suites each of you.
Here are some examples of a Own-Half arrangements;
1/ May to October (Summer ownership) or,
2/ Nov to April (Winter Ownership) or,
3/ May to October (Summer) with 2 weeks reciprocal exchange with the co-owner that owns Nov to April (Winter) or,
4/ Alternating every month or,
5/ Alternating every two months or,
6/ Alternating every two weeks or,
7/ Alternating every season or,
any other arrangement that suit both co-ownership partners.
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 OwnHalf.com's 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. Reserve deposits by both parties are customary.
15/ Can we rent out our share 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 may help you find a property management company to help keep unit clean upon renters' vacating or give you the tools for a Rent-by-Owner scenario. At your request, you may enter 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 my absence. If not, there are usually caretaker services in resort towns that can be hired to look after your property.
OwnHalf.com will help you locate those services wherever you plan to settle your vacation dreams. It is nice to know that when its time to vacate your ownhalf season because your 6 months is up, the other owner occupies the next season and you therefore have no worries about security or occupancy.
17/ How do I find the right property? OwnHalf.com has its finger on the pulse of the vacation home market, cottages, chalets, condominiums, yachts and houseboats continually scouting Florida and Ontario for those one-of-a-kind, hard-to-find, signature properties that have made OwnHalf.com so popular.
Based on the criteria collected from the Client Profile Survey, Own Half.com will access its licensed real estate brokers to uncover the vacation property that is just right for you. Vacation properties from 100,000 to 15 Million Dollars and higher, plus ... we will find just what you are looking for.
For OwnHalf sailors ... a fractional plan for a small $20,000 watercraft to a 25 Million Dollar Mega Yacht and higher for Fractional boat plans for personal use and for charter income ... there are many possibilities and tax advantages!
18/ Can my property appreciate in value? Yes of course, 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 adept at 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. There may be some tax advantages available to you if the property is used for rental income as a business depending on your province or state.
20/ Can I purchase an OwnHalf 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.
We recommend you find out about a 1031 Exchange regarding taxes.
21/ How do I finance an OwnHalf purchase? The best way to finance your purchase is with a home equity loan against your primary residence leaving the vacation property free and clear of any mortgages.
However, you can arrange to buy an Own-Half plan with a low rate mortgage, or enter into a vendor finance arrangement, again, providing this arrangement and terms and amount is mutually agreed to by both owners.
Still the best arrangement is full cash payment with no financing options through an equity loan. Many purchase and finance options are available providing they are mutually agreed upon by both parties and based OAC.
Thanks for taking the time – we look forward to seeing on board!
Dave and Jennifer (61 and 59 years of age) now both semi-retired have the luxury and convenience of being able to work from home as consultants part-time. They also both receive pensions.
They took an equity loan on their $1,200,000 house in Toronto that was free and clear. They chose to enter a third share (33%) fractional where they owned a third (4 months) in each of two different locations.
That included a luxury Collingwood condo by the foot of Blue Mountain for $175,000 and that gave them from Sept through Dec which included a white Christmas and New Years Eve each year.
They also purchased a third share in a beautiful condo in Ft. Lauderdale, Florida for $140,000 from January through April.
We like the fall in Canada a lot but can do without months of snow and ice! So, we took blue sky’s and salty blue waters in Florida for those months for pleasure boating, swimming and fishing and the warm balmy night air. You know that sense of well being!
Dave and Jennifer love Toronto so they kept their home sweet home in the city during the summer but travel every weekend to their cottage in the Muskoka’s.
The best of all worlds they say! They also commented on how much they love their lifestyle and would not have it any other way. In total, Dave and Jennifer spent about $375,000 CDN to secure this lifestyle in three fun filled locations of sports and leisure and business.
Makes perfect sense! No worries or expenses when we are not using the property because another couple takes over. Just a whole load of fun that is keeping us young!
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