or Connect
EpicSki › The Barking Bear Forums › On the Snow (Skiing Forums) › General Skiing Discussion › Selling "rooms" or partial ownership in a house?
New Posts  All Forums:Forum Nav:

Selling "rooms" or partial ownership in a house?

post #1 of 17
Thread Starter 

Hi all, 

 

I'm interested in buying a ski house near my favourite mountain in Quebec. However, I can't afford an entire place by myself. Instead I'm thinking of purchasing and splitting a house with some as-of-yet-unknown people. While it would be ideal to buy a place with close friends, none of my close friends are interested enough in skiing to warrant it, so I'd need to sell fractions to people who are presently strangers. 

 

Does anyone here have experience doing this? Have you sold individual rooms in a house, or entire weeks? How did you deal with things like keeping the place clean, free of unwanted guests, resales, etc? I assume one would have to write a charter; what kinds of agreements did you include? 

 

Interested in hearing people's experiences. 

post #2 of 17
It's enough stress to have a condo with a homeowners association, especially if things aren't running smoothly due to the economy or construction issues. Can't imagine that stress being brought literally into the house where you share a kitchen.
post #3 of 17

5 of us rent a house together, we have been friends for over 20 years. We have been renting together for over 10 years. There used to be 6 but one past on.

 

Like sibhusky said, I can't imagine doing this with strangers.

 

The owners are other race team parents, our kids came through the program at the same time, that's how we know each other. When the owners heard we were looking, they came to us and begged us to rent their house, as they were feed up with renters.

post #4 of 17
You would probably be better off and renting to others after screening, negotiated trial period etc.
post #5 of 17
Quote:
Originally Posted by Metaphor_ View Post
 

Hi all, 

 

I'm interested in buying a ski house near my favourite mountain in Quebec. However, I can't afford an entire place by myself. Instead I'm thinking of purchasing and splitting a house with some as-of-yet-unknown people. While it would be ideal to buy a place with close friends, none of my close friends are interested enough in skiing to warrant it, so I'd need to sell fractions to people who are presently strangers. 

 

Does anyone here have experience doing this? Have you sold individual rooms in a house, or entire weeks? How did you deal with things like keeping the place clean, free of unwanted guests, resales, etc? I assume one would have to write a charter; what kinds of agreements did you include? 

 

Interested in hearing people's experiences. 


Do not do this. It is almost impossible to buy a place with relatives or close friends and not have big problems. Buy it and rent it when you are not using it.

post #6 of 17
I've never done what you're thinking about but it sounds like a disaster in the making. It'd be like having roommates from whom you couldn't easily walk away.
post #7 of 17

My niece, her husband and 2 other couples bought a ski house that sleeps 14 people. They have all done improvements on the property over the past 3-4 years. It's still a work in progress.

 

They have a couple rental properties near there home, so they had an idea of what they were getting into. The friends are contractors, just one of them has a hard time finishing things.  The upstairs bath in gorgeous except for the missing trim around the door and some on the floor, they'll finish it some day. There are other stories like that through out the house.

post #8 of 17

One of my college friends started a fractional ownership company.

http://www.alpinequarters.com/

The moneys in the management, not necessarily the sale.

 

Fractionals are difficult to sell, if you change your mind.

 

I think you'd be better off with an outright purchase. Then AirBnb the rooms out or long term it, with a lock off for yourself.

post #9 of 17

One of our friends, who is a lawyer, asked us if we were interested in becoming part of an LLC for this very thing. We weren't, but my point is, this is stuff for a real estate attorney. My mom/sister are realtors and they even tell unmarried couples to always consult a real estate attorney before buying a home together. 

 

Though even with a lawyer, I can't imagine how this situation turns out well, how you'd be able to sell if you needed to, etc. Save up until you can afford something, then rent it out to help pay the bills (though that's a whole other can of worms).

post #10 of 17

Shared ownership is a relatively common model in San Francisco, for our own peculiar reasons, using the concept of Tenancy in Common. That's a single deed that is split among multiple owners. It's most commonly used here in smaller multi-unit buildings that have not qualified to convert to condominium under our laws. Imagine a building with three apartments with separate owners and a single deed; that's a TIC. A recent change in banking rules has made it possible to obtain fractional mortgages, which has made TICs a bit easier to sell, but in general they are worth about 10-20% less than a comparable condominium that is not encumbered by joint ownership. Given home values here, that translates to about $100,000 less value for a typical one bedroom apartment if it is a TIC than if it is a condo.

 

For many of the reasons mentioned above this is not a model to be entered into lightly. Make sure that you've worked through how you will handle buy-outs, and make sure nobody buys in that can't afford to participate in a future buy-out, because that's when these things can become really ugly.

post #11 of 17

Yeah, my first thought when reading this was ... WHY!!!?? If you can't afford an entire house, why not look into a condo? If they don't have condos, why not look at a different resort in Quebec? 

 

I assume part of the idea is to get a vacation home that you can enjoy, not just take on a big, nightmarish project. From what I've heard, renting out an entire ski house/condo is difficult enough and you're lucky to cover the mortgage. What you're contemplating sounds like it'd be much more difficult and you'd probably have trouble making what you need just to pay the mortgage, cleaning fees, maintenance, etc. That's before you get into the potential legal problems that are likely to arise when you're buying something with people you don't know.  

 

There's a reason those timeshare companies have to lure you in with a bunch of free stuff and then go after you like sharks around blood. If anything, the idea of running a timeshare-type property is the one thing that makes just owning a timeshare look pretty good.

 

Think really hard before you spend any time pursuing it. 

post #12 of 17
Thread Starter 

Sounds like this only works well with family or close friends (and even then it sounds challenging). If only I'd grown up in a skiing family or skiing community... Thanks for all the input. 

post #13 of 17
Don't give up so easy.
We don't like partners. Doesn't mean there aren't any opportunities. Money is cheap now!
post #14 of 17
Quote:
Originally Posted by SHREDHEAD View Post
 

One of my college friends started a fractional ownership company.

http://www.alpinequarters.com/

The moneys in the management, not necessarily the sale.

 

Fractionals are difficult to sell, if you change your mind.

 

I think you'd be better off with an outright purchase. Then AirBnb the rooms out or long term it, with a lock off for yourself.


The AirBnB may be better but suspect due to the question posed you don't wish to buy into a whole home. My divorce lawyer sister in law noted that partial ownerships and timeshares are always financial issues when folks divorce.  Of course no one plans to do so, you may not be married so, just an FYI.

 

Other thought though I'd recommend a tax attorney is if you can do it as a self directed IRA (well, this in the states - I have no clue about Canada) where if the market is good, you (eg: VRBO) manage rental yourself or use a management company and then you rent from yourself at the going rate.

 

the idea there is it's a housing market that's on the up ..

post #15 of 17
Ski clubs are another option. Our house is 6000 sq ft, sleeps 40 if needed, full bar and very reasonable to stay. Did I mention we are 200steps from a chairlift?
post #16 of 17
Quote:
Originally Posted by banzaibikes View Post

Ski clubs are another option. Our house is 6000 sq ft, sleeps 40 if needed, full bar and very reasonable to stay. Did I mention we are 200steps from a chairlift?


Geez, I don't even have 39 friends.  however I'll speculate that if I rented, 39 friends would find me!  :D

post #17 of 17
Quote:
Originally Posted by Metaphor_ View Post
 

Hi all, 

 

I'm interested in buying a ski house near my favourite mountain in Quebec. However, I can't afford an entire place by myself. Instead I'm thinking of purchasing and splitting a house with some as-of-yet-unknown people. While it would be ideal to buy a place with close friends, none of my close friends are interested enough in skiing to warrant it, so I'd need to sell fractions to people who are presently strangers. 

 

Does anyone here have experience doing this? Have you sold individual rooms in a house, or entire weeks? How did you deal with things like keeping the place clean, free of unwanted guests, resales, etc? I assume one would have to write a charter; what kinds of agreements did you include? 

 

Interested in hearing people's experiences. 


As a real estate attorney in a ski town who was hired to draft documents on several occasions to set up arrangements like you suggest, I can assure you it will turn out to be a complete nightmare.  You are obviously operating under the misconception that everyone will act reasonably and be considerate of the other owners.  The reality is that people will treat it like a motel.  The hassle and cost to set up a workable system far exceeds the benefits.  The innumerable issues like dealing with friends of owners who stay there, taxes, insurance, maintenance, collection of money owed and determining who is responsible for damage is overwhelming. As an example, imagine what happens when some of the owners start renting out their rooms as VRBOs to recoup some of their expenses.  Even if you forbid it in the documents the renters will turn out to be "friends" of the owner.

 

If you are attracted to dealing with this type of situation I suggest you buy a hotel.  My advice is to just rent, you are far better off, and you will remain on good  terms with your friends.  

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Skiing Discussion
EpicSki › The Barking Bear Forums › On the Snow (Skiing Forums) › General Skiing Discussion › Selling "rooms" or partial ownership in a house?