Home Buying in San Francisco>Question Details

VineHill, Other/Just Looking in 94111

I'm considering buying a fractional condo in San Francisco.

Asked by VineHill, 94111 Wed Nov 28, 2007

Does anyone know of other projects besides the Ritz or the Fairmont? Are these bad investments? Am I better off buying a condo outright?

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I would suggest looking in to a TIC also. Same situation as a condo, yet the price point is maybe 20% lower. You then own your own unit and have maintenance fees far lower than you would with the two fractionals you mentioned.
1 vote Thank Flag Link Wed Nov 28, 2007
Mario Pinedo,…, Real Estate Pro in Cupertino, CA
We own a 2 bedrtoom fractional at the Ritz and a change in our plans require us to sell at $50K below current market
0 votes Thank Flag Link Sat Feb 13, 2010
Fractional ownership can be considered as a type of ownership for those that are in need of being in two or several world-centric locations throughout the year. If you find you need to be in SF for a few months, then out to Dubai for a few months, then again out to London or Rome for a few months, you might be the candidate for owning fractional. The reason why these are becoming a trend is that you are exposed to less overall tax liability in each of the nations you'd own in. Also, you wouldn't need to fully own the properties in each location, but would have the flexibility to operate out of each property with a reasonable amount of planning (to avoid using the property at the same time as another fractional partner would). Fractional ownerships are becoming something to look at for those that have needs to be in multiple international locations. If you're not in need of being in several locations throughout the year, then you might want to review your choices. Note, that fractional ownership is not readily available everywhere. It is generally available in world class locations.
0 votes Thank Flag Link Sat Dec 29, 2007
Just to add to Mark's comments I think you'll also want to evaluate the brand -- The Ritz is certainly an internationally recognized brand that carries its own cache.
0 votes Thank Flag Link Sat Dec 29, 2007
There is a new website that helps buyers understand fractionals and can assist you in locating the appropriate fractional product, The Fractional Concierge. You can view it at http://www.TheFractionalConcierge.com.
0 votes Thank Flag Link Sun Dec 2, 2007
The Odeon in Union Square has a unit that is "fractionalized" .

As far as being an investment, I think it's a little early to tell - they are such a new product category ...however, they are increasing in popularity mainly because

1) the cost of housing is high
2) hotel costs are equally high
3) people are increasingly traveling the world and having 2nd and 3rd homes but don't want the hassle of "whole" ownership.

Time will only tell unfortunately. If you are worried, make sure you buy something truly unique though - something that will stand out when you try to sell again - 1) views 2) location 3) more views 4) better location... etc.

Hope this helps!
Web Reference: http://www.markchoey.com
0 votes Thank Flag Link Wed Nov 28, 2007
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