SHARED OWNERSHIP – WHEN PARTS ARE GREATER THAN THE WHOLE
The recreation-driven buyer has returned, but they are cautious and very well acquainted with the market, as the internet provides easy access to a wealth of information. In addition to solid market knowledge and financial assessments, Buyers are often considering the amount of time they are able to utilize their recreation property, as typically these are not primary residence purchases. When Buyers conduct an honest assessment of how much time they have available to use a property, often they realize there are far more open weeks in the calendar than full ones. The concept of leveraging available time on properties that are under-utilized is not new; timeshare and fractional ownership has been part of the real estate landscape for many decades. Often they are focused on resort-style real estate with high demand and the pricing to match. Sharing a ranch in Montana may be something many buyers have not considered, but there are many good reasons to consider this approach.
Unlike timeshares, which typically do not involve deeded ownership, shared ownership allows multiple parties to have deeded ownership in the same property. Just like any deeded ownership, these purchases can be conventionally financed and sold independently. There are several ways to structure shared ownership including forming corporations or buyers can simply take title with their percentage of ownership. Tenancy in Common and Joint Tenancy are common ways to take title to shared properties. Tenancy in Common refers to property ownership where two or more owners have rights to access the property and share income/expenses. Tenants in Common may possess different percentages of interest and can be distributed to any heir. Joint Tenancy provides a similar set of shared rights, but is distinctly different as ownership will pass to the other tenants in the event of a death. How you take title to a property is an important business decision and it is important to consult with your legal and tax advisors prior to taking title to any property.
Our Wise River Ranch listing is an excellent example of a shared ranch that provides access to a much larger Ranch than you can find anywhere else in the Big Hole Valley for under $1.5M. The Wise River Ranch is set up with two owners, who each retain an individually-deeded and wholly-owned 5 acre parcel where their homes are located, and the remaining 468± acres of the Ranch are owned jointly. This allows the owners to split annual maintenance costs but take full advantage of the fishing on over 1 ½ miles of the Wise River, have access to the abundant hiking trails on the Ranch and the adjoining National Forest, enjoy the wide array of wildlife and breathe in the slow rhythm of life while enjoying all that nature has to offer.
The Wise River Ranch brings to life the scenario where the sum of the parts is greater than the whole.