Own Share of A Santa Fe House
Seniors Can Save Money, Spend More Time With Fractional Ownership
El Corazon Equity Residence Club offers deed, deluxe property, and at least 3 weeks a year to enjoy your New Mexico visit without a million-dollar investment
Why is fractional ownership so popular in resorts? Because you buy only a share in a house, but you can spend several weeks there at a reasonable cost and enjoy the same property each time without paying the heavy price of a deluxe home
Example: El Corazon de Santa Fe, a new "equity residence club." It's a member-owned set of 15 elegant two-bedroom residences plus a clubhouse, located quite close to the New Mexico capital city's historic plaza, affiliated with the luxury destination club Quintess.
Fractionals Let You Own High-End Properties
Many travel - happy boomers and seniors prefer to keep their home base -- New York, Los Angeles, Dallas or another city -- but spend several weeks or months in a yummy resort town such as Santa Fe. You might not want to tie up cash or take out a big mortgage to own a house.
With a fractional, you buy a one-sixth or one-eighth interest in a million-dollar property for much less, but you'll get many of the weeks you want... and not too many of the costs that you don't want. Example: El Corazon. You get a real estate warranty deed so you can deduct mortgage interest costs on your income taxes, and you are guaranteed 21 days a year. If there is space available, you can return for another part of the year.
Two Bedrooms and Two Baths for Only $130,000 and Up
In Santa Fe these days, that's a bargain. You own only 1/8 share, but if it's not your primary home, this makes sense. Yes, there are annual costs, but pros take care of upkeep. You get special pricing at a local golf club, a place to store clothes and equipment, and a concierge to go grocery shopping to fill your fridge before you arrive.
There are two models at El Corazon -- Terra, which are single level residences for $130,000 and up, and the larger Montana, two-story, two-bedroom 2 ½ bath homes of 1500 to 1800 square feet for $175,000 and up.
Timeshares vs. Fractionals
El Corazon is careful not to call these units timeshares. You get "much more time" plus "a higher quality and higher priced product," according to a spokesman for the consulting firm Ragatz Associates. A rotating priority system gives each owner a chance to visit during a peak vacation period such as Christmas or Indian Market week.
There are very few fractionals in Santa Fe so far, but they are succcessful in such resorts as Aspen and Deer Valley in snow country, and in beach resorts such as Hilton Head, SC, Florida, Bermuda and the US Virgin Islands.
