Fractional Ownership
Although many people dream of owning vacation property, most either cannot afford the type of property they want, or reason that they would not use the vacation home often enough to justify the expense. Fractional ownership provides a solution to these problems by allowing each co-owner to pay only a fraction of the costs and ongoing expenses of vacation home ownership, and share the risks of unforeseen maintenance problems and upkeep with others. Of course, in exchange for spreading the costs and risks, the owner gives up some of the usage rights and freedoms of whole ownership. As job and school commitments prevent most people from using a vacation home more than a few weeks or months each year, some loss of freedom and control is often an acceptable sacrifice for the tremendous cost savings.
The most popular model for fractional ownership usage is the Usage Assignment Approach. Each co-owner is assigned the exclusive right to use a home during a specified number of days, weeks or months each year. The usage periods can be
• fixed (e.g., the month of February or the first two weeks of February and July);
• variable (meaning they change each year); or
• a combination of fixed and variable.
Usage rights can be restricted to owners only, or extended to family, friends, rental tenants, exchanges, or any combination of these. Different usage rights may apply to different usage periods. Usage periods can be assigned through an annual rotation among the co-owners of preset groups of days, weeks or months, an annual selection or draft process based on a rotating system of selection priority, a reservation system, or any combination of these usage systems.
The above description is provided as background only. Villa Giulia will be owned and operated under a nonprofit Mutual Benefit Corporation organized in California. This type of corporation does not generate any profits, but allows ownership transfer under US laws and provides for management of any local expenses. These include items like utilities, cleaning and maintenance.
All rights and responsibilities will be governed by a set of bylaws (currently under development).
FAQs:
How many shares are available?
Currently there are five four-week shares available.
Can the shares be resold?
Absolutely, the deeds are fully transferable, assignable, or can be passed from one generation to the next.
What are the expected annual costs?
As this is new construction, maintenance should be very minimal for many years. Utilities will be only a rough estimate until usage patterns are established. A rough guess is about €500 - €600 per four-week block of ownership.
How much do hotels in Lerici cost?
As a point of reference, there are only a few hotels in the immediate vicinity, they fill quickly and typically run about €220. Less expensive hotels can be found in La Spezia (less than 30 minutes away).
Can owners rent their time?
The answer is no. The bylaws will prohibit renting for several reasons. We do not want to run afoul of Italian tax laws and the owners want to maintain a pristine environment. Sharing with close friends and family is permitted, with the suggestion that they preserve and respect the property.
Can we have the same block every year?
The answer is yes. At this time the managing partner has determined that January, February and March will not be offered for sale. These months are the least desirable and will be used for any necessary upgrades or maintenance. Should a potential owner be interested in any of these months, please contact the managing partner.
How much will one month cost?
The final cost has not been determined. This is because the final design and finish materials, appliances, closing costs, and taxes have not been determined or purchased. At this time there is a reasonable range that can be discussed if there is an interest.
What is the next step?
This is up to you. We strongly suggest a visit to the area before making a commitment. While the location and specific property are the end result of years of research and endless walking, driving, reading and exploration, this may not be the perfect place for everyone.
Do I need to speak Italian?
Everyone should speak Italian! But you can easily get by in this area. Most restaurants, shops and educated residents can speak some English. This is really up to you, but don’t expect Lerici to be like Cinque Terra—overrun with foreign tourists. This is an Italian experience and is a vacation destination primarily for Italians from Milan, Genova and other cities.