Ownership Options
Whole vs. Fractional Ownership
Clifton Meridian properties benefit from a variety of purchasing options, including both Whole and Fractional ownership. Foreign "Whole" ownership in Mexico is achieved through a bank trust, or Fideicomiso. A Fideicomiso is a bank trust which makes a buyer the beneficiary of the purchased property, allowing the buyer to use, lease, sell, will, improve or encumber the purchased property. This gives an American owner all the rights they've come to expect when owning property. For more information on how a Fideicomiso works, visit our Mexican Property FAQ.
What is "Fractional Ownership?"
Many of us have the dream of owning a vacation home on or near a beautiful beach, and for years, hundreds of U.S. citizens have come to the beaches of "Rocky Point" to fulfill that dream.
However, now that dream is becoming more and more costly. Beach front residences range from the very low end of $300,000 on up to $1,200,000 or even higher. Even for those who can afford these prices, one must ask: how often can I really make it down to Rocky Point to enjoy (and justify) this substantial investment? Maybe the answer is two weeks a month, maybe it's 1 week a month. Whatever the answer, you also must ask yourself some other important questions: What is a Notario, Fideicomiso, Federal Zone, and how will I pay the bills, keep an eye on the home, perform regular maintenance, clean the house, etc, etc? And will I have the time and the money for all these responsibilities and still have time to truly unwind and enjoy the beach? All of these questions should be answered prior to purchasing a home.
Well, now there is an alternative to sole ownership in a Beach-Vacation Home, and it's called "Fractional" or "Interval Ownership," often referred to as "Equity Sharing." Fractional ownership offers all of the pluses of whole ownership without all the hassle. People can now truly buy only what they will need or use. Even the most ambitious traveler typically only makes it down to Puerto Peñasco one or two weekends per month, making Fractional Ownership the most cost effective and useful option.
This is how it works:
Each residence has 4 owners. Each owner has the use of the unit for one full week every month. Because the home is closed every year for up to 4 weeks for maintenance, the calendar automatically "shifts" the rotation of owners by a week each year. This guarantees that one owner who has Thanksgiving week, for example, that next year the holiday automatically rotates to another owner and so on. If an owner cannot use all of their time per year, it is their option to utilize the Exchange network and visit other resorts around the world, let family or friends use it, or rent it out and keep the proceeds. Management services are paid for quarterly, in an all inclusive fee which usually range from $350-$400 (per month), depending upon the size of the residence. Writing a quarterly check is our owners only commitment "to work" for beach living!
A few limitations to consider:
There is the ridged schedule. One week each month can be overcome with a trade with another owner, or we have had people buy 2 shares to be able to come for longer periods (or more often ). But the schedule does let an owner know what weeks they will have for the next year, 5 years from now, or 10 years from now. Also, because the unit is being "shared" by others, there are no pets allowed, and no smoking is allowed inside the home (outside on the beautiful beach side deck is OK). This allows us to maintain the residence in a pristine condition from one week to the next, year after year. We view this as an advantage to the group as a whole. While some people dream of Paradise, our "Fractional" owners prefer to own a piece if it!!
La Perla del Mar will offer 1/4 and 1/8th share products. All unit types will be offered in 1/4 share interests with the exception of the penthouse and one of the ground level Casitas which will be offered as 1/8th share. For more information, visit the La Perla del Mar website, or download a PDF version of the La Perla del Mar equity share program.
Fractionals will also be offered through our other properties, Las Fuentes del Mar and Los Patios Privados. For more information about our fraction programs and options, check out our fractional FAQ.