Hottest New Trend Catching On In The Real Estate Market... Article

Luxury Vacation Resort Homes are a great hedge for investing in this tough real estate market.

Fractional ownership is becoming the hot trend and is a good investment, especially for foreign investors. With the U.S. dollar value extremely weak now is the time to buy.

Fractional ownership gives you deeded ownership of a portion of a luxury home for perhaps 10% or 20% of the cost, and without the headaches of maintenance.

Most of these exclusive homes typically come with a 5 Star Status, and are usually located near ski resorts, beaches or a golf resorts. Luxury amenities include golf courses, water parks, swimming pools, health clubs, spas, beaches, ski slopes, concierge services, grocery shopping and house cleaning.

Expect to pay about $60,000 to $800,000 to use the house or condo, typically for four to 16 weeks per year. And annual maintenance fees run about $5,000 to $10,000. So instead of plunking down, say, $2 million to buy a posh pad at your favorite ski resort, you'd pay $300,000 -- and share it with a few other people.

A luxury time share is simple to achieve. An individual contacts a company or private parties and decides to buy a piece of property. Then they make up a contract, spelling out who gets the location and what weeks each will get out of the year. The more owners the less risk and the less amount of time your family will have to enjoy it.

Owning a luxury home as a fractional owner is completely legal, I would still recommend having a real estate attorney review the deed and covenants, restrictions and home association rules before purchasing.

With Banks looking for ways to lend money with less risk especially on jumbo loans, this has been a huge hit of late. Multiple responsible individuals significantly reduce the risk of foreclosures on real estate loans.

In the past couple of years Wall Street investors have slowed buying real estate securities. With new imposed under writing guidelines by the Feds on banks, and with the signing of the new Home Relief Bill by President Bush we will see Freddie Mac and Fannie turn around in the near future with Wall Street investors returning back to the market.

With the president election this year I really don’t see interest rates rising in the next couple of quarters. If you are on the sidelines asking yourself if this is the bottom, or your concerned will it continue to go down, in my opinion we are very close to the bottom if we’re not there already.

We will start to see the monies the Fed and the president have put in the economy within the next six months. I wouldn’t be surprised to see the next President help the housing market soon after he takes office.