Lessons Learned

Posted by: dan in Untagged  on Print PDF

Sometimes the most obvious solution isn't the best one.... I'd like to start sharing some lessons and tips on this blog that I pick up as I work my way through the new but interesting world of fractional home conversion... (I'd actually like to make this a regular contribution to my blog so that all of my readers can learn right alongside me!)

This lesson here, is a small one but it shows the power of fractional ownership. It involves the current project we have going on in Mexico at the moment. In the process of setting up the use plan we decided that we were going to have three 3-month blocks and three 1-month blocks during the summer. This would provide us the best overall flexiblity for prospective buyers who have different needs. This is all covered in an earlier blog post so I won't repeat it here.

The "Ah-ha" moment came when I naturally assumed the most "valuable" block of time would the Nov-Dec-Jan block, but this turned out not to be the case.

As we investigated a little further, it turns out that from rental records for the area (a beach community known to Canadian and American "snow birds") the most popular time is actually February, March and April! So that made the Feb-Mar-Apr block the most appealing from a sales perspective and thus it could command a premium. The reason is logical - the "snowbirds" like to be around their homes for the holidays but by February, the holidays are over and they are sick of the snow! Makes sense to me. 

So that is an example of how you can go into a situation with certain assumptions, but those assumptions turn out to be false when you really look at the data.

Take care everyone!

 

 


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