"Upper Crust Living"
without a lot of dough

Lynda and I are here for only a few weeks every year ... 

And to have the home sit idle the rest of the year is crazy! 

But selling makes no sense. It's too nice a home - the gardens, the pool, the mountain breezes, the stunning lake-views, all the space, the fresh air, the peace and tranquility  ... it's the best get-away from the "rat-race" we've ever had, and we love it! Too, with millions of boomers in the pipeline, we think that this home, in this climate, is about as good an investment as there is right now. 

So we decided to set up a "SHARED OWNERSHIP" of our home and look for 2 other interested partners, who come to lakeside "part-time" during the year like us. It's a "win-win" for us all, i.e.: 

1. Each of the partners will own a 1/3rd interest in the home. Two of the three will be "winter preference" partners, with access to the home for 16 weeks every year (with 10 weeks fixed every winter). The "summer preference" partner will have access to the home for 20 weeks every year (with 14 fixed in the summer).
2. While here, we'll each live, and enjoy life, in a $500,000 home, but have only $160,000 invested (great risk management), and
3. At the end of year 6, the partnership agreement requires that we 3 partners decide to either:

• sell the place the next year (yr 7), and split the proceeds, or
• continue on with the partnership, for 5 more years after that.

In today's economy, especially here on lakeside, SHARED OWNERSHIP sure makes a lot of sense:

First ... renting can be a real hassle on lakeside: Will you even find a place? Will it be a nice place? Will it be good value? Will it be re-rented or sold before you arrive? Will you find a place where you can keep your stuff? Will it "feel like home"?

Second ... it's just smart investing. Real estate is now pricey on lakeside - why invest $500,000 into a home used for just part of the year, when you need only invest 1/3 of that? And, with all the boomers now looking for these types of properties, what are the chances you'll make a profit when it's sold in year 7?

Third ... you always have an "out", at least in this particular case i.e.  as the partnership automatically terminates in year 7, if you tire of Mexico, you'll receive your share of the home sale proceeds then. Plus, if you want out before then (maybe a death in the family; maybe a sickness, who knows??), we, as the original owners, with no questions asked, will buy out your share for the price paid, less 4% for each year, or part year thereof, that you have been in the partnership. 

Fourth ... you know the home will be well maintained (that's important, because you'll want to maximize value when the partnership terminates in year 7 and the home is sold). This will happen because we, as the original owners/builders of the home, will remain involved as one of the partners, and because the "improvement pool" will be well funded. 

Here's more detail on the plan:

1. Structure-wise, you're a partner with 2 others. The three of us have an equal interest in the home (and in its net sale proceeds when, in year 7, the home is sold))

2. Your entitlement to occupancy is split between FIXED weeks (same year-to-year) and VARIABLE weeks (where the order of selection rotates between the partners one year to the next).

3. The cost for your 33% share is CDN$160,000. In addition, you will also be investing $7,500 into a one time "IMPROVEMENT" account, held with Lloyds, to pay for major repairs, new appliances and any home infrastructure needed during the 7-year term of the partnership (any unspent balance is returned to you at conclusion of the partnership).

4. You'll also be required to pay your share (fixed at a maximum of Cdn $3,500/yr each for the 1st three years, but it could vary thereafter) of annual (accountable) costs incurred to operate the home - gardener, maid, hydro, water, propane, telephone, satellite TV, internet, minor repairs, etc. 

To enquire further, please email us at UpperCrustLiving@lakechapalahomes.com or call us in Canada at 519 742-1289, and ask for David.

Here is some more information:

• a description of the numerous features of the home, and

• a map showing where we are and directions on how to get here

Here are a few of our favourite pics: