Villas For Sale at Villa La Estancia
Cabo San Lucas, Mexico
About Fractional Ownership
Fractional Ownership has grown to become increasingly popular in recent years among people looking to enjoy the benefits of luxurious possessions with shared ownership.
What is Fractional Ownership?
The simplest description of Fractional Real Estate Ownership is ‘shared ownership of a deeded property, with usage rights based on time’. The purchasers have a stake in an asset without having to pay for the entire property.
Because each owner holds an equal part of the Title, the buyer owns partial equity in a valuable asset. As the value of the property appreciates so, too, does the purchaser’s equity.
Generally, a management company takes care of service and amenities.
Can U.S. or Canadian citizens buy Real Estate in Mexico?
Yes, citizens from other countries are eligible to buy real estate in Mexico, but it must be done through renewable bank trusts known as fideicomisos.
A ‘fideicomiso’ is a 50-year, perpetually renewable and transferable Bank Trust which allows foreigners to acquire irrevocable and absolute ownership rights to property in Mexico. This Trust is the legal equivalent of fee-simple ownership and is provided specifically for non-nationals, allowing them to own coastal and border property.
What is the most common types of fractional ownership in Los Cabos?
Fractional ownership properties in Los Cabos tend to be ocean view homes or villas, many of which are part of private residence clubs offering upscale amenities that are shared with neighboring owners. These amenities often include tennis courts, fitness facilities, business centers and concierge services.
The most common and best option is ¼ ownership (.25%), where four owners hold equal ownership percentage.
Typically there are three seasons: Winter, Spring and Summer and each quarter owner would receive one month (30 days) in each season in a rotation each year within a selective lottery process. Each year, each owner will receive a desired month guaranteed.
There is also the possibility of trading time with other ¼ fractional owners.
What is the investment potential?
Fractional Ownership provides an opportunity to build equity, as well as, an ability to rent some or all of your usage rights, allowing you to recoup your initial investment in the process.
Is fractional ownership right for you?
Fractional Ownership is more affordable than a traditional real estate investment model, with a lower overall down payment and fewer worries with regards to maintenance and property ownership responsibilities.
Testimonials
From Villa Owners
Giovanni Giammarco made our transaction one of the easiest we have experienced
January 2011
Purchasing property in a foreign country can be a challenge but Giovanni Giammarco made our transaction one of the easiest we have experienced. He was reliable, provided open communication throughout the entire process, and was available every step of the way. Because of his tenacity and determination, we were actually able to close early and now are the proud owners of PH3502 at Villa La estancia, our new luxury dream home. Thank you, Giovanni!
Mary Vaidya New owner, Penthouse 3502
No one I’d trust more to represent me
January 2011
It was hard enough to make the decision to sell my villa in Cabo, and the two potential transactions that failed to close with other agents at Estancia only made matters more difficult. I felt comfortable and confident when, Giovanni Giammarco, shared with me his background of 25 years of real estate experience and commercial success in the U.S. He is also one of our villa owners, past President of the HOA, and founder of Cabo La Estancia which is the number one rental company for Estancia online. Cabo La Estancia has provided me with significant rental income on PH3502 over the past several years and Giovanni was always personally involved, using his expertise to maximize my cash flow on the villa. Consequently, I knew there would be no one I’d trust more to represent me when I decided to sell my Cabo Penthouse.
John Scherer former owner, Penthouse 3502
Add Your Testimonial