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The Muskokan Resort Club is the only luxury fractional real estate development
on Lake Joseph. Shared ownership is the smart way to acquire an exclusive
million dollar-plus Muskoka waterfront cottage. The Muskokan Resort Club,
the first luxury fractional cottage development to open in Muskoka, is
set on 40 acres on the best sand beach in Muskoka. Set in a secure, private
environment where only owners and guests congregate, the Muskokan offers
care free cottage lifestyle with all the amenities and privileges of the
finest resort club in Muskoka including its own Boat Club.
When making your cottage purchase decision, consider
these questions:
Q: What
are the benefits of Fractional or Shared Ownership in Muskoka?
Q:What
is the information we should know before purchasing?
Q:Mixed
Use Development (hotel and restaurants) are they an advantage?
Q:What
is the value of an exchange company?
Q:Are
you looking for a private Cottage community?
Q & A
Q:What
are the benefits of Fractional or Shared Ownership in Muskoka?
A:•
Investment equals the actual time you use it
• Own
a million dollar-plus property for a fraction of the cost
• Vacation
home properties are generally an illiquid form of investment; therefore
you don’t have that much  of
your portfolio invested in this asset category
 - Hedge against the swings
in the value of vacation home properties
- Invest $200,000 rather
than $2 million! But still enjoy a $2 million cottage
• Purchase in Canadian
dollars
- Hedge against currency
swings
• Purchase known
real estate. Historic long term appreciation in values of real estate
on major lakes
• Purchase within
driving distance to get maximum use of your cottage
• Avoid foreign
ownership pitfalls/rules/regulations/right to sell
- Invest close to home
and use Vacation Exchange Company to travel the world
- Don’t own real
estate in areas prone to natural disasters, hurricanes/floods
- Consider travel costs
airfare/distance to home resort
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Q:What
information should we know before purchasing?
A:•
Balance sheet and financial statements for the development should be readily
available
• Are
there large debts against the project?
• Can
the developer or other owners mortgage the property?
• Does
the developer restrict sale of your unit? Why?
• Have
there been any resales? At what price?
• Density
how many units will be built on site?
- How does this compare
to total number of acres of the site
• Are
the water and sewage systems owned by the development or provided by third
party?
- Whose responsibility
and costs to maintain?
• Is
there a capital reserve fund study available for review? Is the reserve
adequately funded?
• Level
of services provided;
- Housekeeping etc
- On site management
• Amenities
- Pools /tennis courts
/ sports court /club house/swimming pools/ exercise facilities?
- Who owns them? The
developer? If so how are costs allocated?
• Property
Management
- Is the development
managed by a professional management company?
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Q:Mixed
Use Development (hotel and restaurants) are they an advantage?
A:•
Do you want to own a fractional which is part of a hotel and restaurant
operation?
• Consider
noise issue re: transient hotel guests, conventions and weddings
• How
far is the hotel located from your fractional? security, privacy issues
• Is
the fractional development situated within an owners community versus
the transient guest population of the
hotel
• Be
wary of mixed use developments hotel/retail/ restaurants on site - do
you really want to worry about
the risks of these commercial
operations and how it may affect your investment
• Restaurants
on site are a mixed blessing. Most developments offer fully equipped kitchens.
Therefore,
restaurant operations
require outside users to remain economically viable
• Are
cost allocated properly by developer for these commercial areas.
• Is
it viable business on its own? Will developer be committed to operating
if losses are sustained in
operations?
• How
do the hotel rates compare with the cost of the fractional? With the cost
of the maintenance fees?
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Q:What
is the value of exchange company?
A:•
Leverage your fractional through the exchange company and travel to exotic
places
• Credits
of your resort versus others
• Availability
of trade
• Concierge
programs
• Can
you use for mini vacations if you can’t take full five weeks holidays
• Consolidate
off season weeks and travel to exotic destinations in prime time
• Bank
your weeks and travel later
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Q:Why
should we consider a private Cottage community?
A:•
Is the development a Private gated community?
• Does
it offer a Secure family environment?
• Do
most owners use or rent their units?
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