An Overview of the Financials
Depending on the home and your ideal ownership stake, ownership interests range from $100,000 to more than $1 million. Generally, a budget of $250,000 will enable a family to become co-owners of an Elite Destination Home. Annual expenses vary widely based on the home, ownership stake and financing. Once the Elite team has helped you determine if its model is a good fit for your goals and needs, we will be happy to share details about annual carrying costs for specific properties that appeal to you.
It’s important to note that Elite Destination Homes are primarily intended for the enjoyment of their owners, friends and families. Given the volatility of the global real estate market, we cannot make guarantees concerning fluctuations in the value of any given property. That said, our properties are magnificent and in outstanding locations, both of which favor appreciation in the long term.
Legal Structure of Ownership
The legal structure of ownership varies by location, as each country in which we operate has unique laws and regulations. However, our legal team is experienced in such real estate transactions around the world, and can answer any questions you might have about a specific Elite Destination Home.
Maintenance and Management Responsibilities and Costs
The Elite team and its local representatives will manage and maintain Elite Destination Homes to the highest standards. This includes cleaning services between stays, upkeep, capital improvements, the training and oversight of local property managers, managing the property’s budget and providing quarterly reports to owners. The cost of these services is shared by owners, apportioned in accordance with their ownership percentage and their annual use of the home.
Financing for Fractional Ownership
Elite homes available for fractional ownership often include a mortgage option, and qualified owners may elect to finance up to half of their purchase. For select homes, Elite can provide financing to qualified owners for up to half the purchase price of the fractional interest. Terms of this financing vary by property and by geography. We will be happy to share details once your interest in and suitability for a given home have been determined.
Rental Income
In addition to their personal enjoyment of an Elite Destination Home, owners can also earn rental income from their property. If you seek revenue from the property, we’ll gladly rent it to select guests on your behalf. The founders of Elite have many years of experience in marketing and managing rental property, and we bring this acumen to bear in maximizing your property’s income potential. However, since Elite doesn’t charge commissions on the rent we generate for our fractional owners, we are just as pleased if owners use their home 100 percent of the time with no rental activity. However, many Elite co-owners value the rental income as a means of offsetting the carrying costs of ownership.
Selling Your Ownership Stake or Passing it on to Heirs
Elite generally recommends that owners maintain their stake in an Elite Destination Home for at least seven to ten years. However, you are free to sell your fractional interest at any time. However, Elite reserves the right to screen potential buyers for financial qualifications and approve their suitability for partnership in a given home.
Generally, owners can will their fractional ownership interests in an Elite Destination Home to their heirs and/or estate. Each ownership group is slightly different, however, so the Elite team is happy to discuss the parameters of inheritance for any of its properties in which you might be interested.