Owning a cottage or other recreational property is part of the Canadian dream but for many people, the financial burden and maintenance hassles make the goal unattainable.
Fractional ownership offers vacationers – including empty nesters contemplating new arrangements for perhaps a combination of residences – the opportunity to obtain their place in the sun by purchasing a share in a recreational property, representing a lower financial commitment and minus the need to fix roofs, cut grass and repair septic systems.
"Fractional ownership is a much more cost-effective way to own cottage property," says Robert Edwards, owner of Quebec’s Dupont Estates development. "You get the flexibility of having a vacation home and at the same time you avoid the financing and maintenance associated with ownership."
Two developments studied, Dupont Estates in La Belle Province and Frontenac Shores in Ontario, offered similar benefits but slightly different ownership and use packages.
Frontenac Shores, located in the Land O’ Lakes region in eastern Ontario, offers one-tenth shares at $59,900 to $79,900 on property on Mississagagnon Lake. The nearest community is Kaladar, on highway 7. Four cottages have been built and were to be ready for occupancy in April. Another 30 are to be built in coming years.
While similar to the well-established timeshare concept, fractional ownership is touted as a significant improvement because it provides participants with actual ownership in property, says Frontenac Shores spokesperson Pat Storms.
"Fractionals are administered in the same way as a timeshare but the major difference is ownership. You own part of it, you have equity in a not-for-profit corporation and you have your own deed in the property," says Storms. "With a timeshare, all you own is a piece of air."
Considering that distinction, Vancouver lawyer and author Douglas Gray stresses that it is essential consumers know exactly what they are purchasing. "Make sure you know what you are getting," says Gray. "Some people who purchase the ‘right to use’ type think they are actually buying a ‘fee simple ownership’ portion."
The lack of responsibility for upkeep is a big incentive for many fractional investors, says Storms. Many of those who like cottaging do not want to put out the capital outlay or the time needed to maintain a cottage, she says. "And they do not want to be obligated to go all of the time. The new generation of buyers of vacation properties wants to have their cake and eat it too. If the average family is going to spend only three to five weeks at a cottage, why own it? Use the money to take a trip around the world.
"It is affordable luxury," says Storms, who is developing Frontenac Shores with her husband David. "You are getting a share of a property that is not run down and that will not require you to do work every time you use it … and you are not overbuying because you are buying exactly what you want."
For their investment, fractional owners receive a set amount of time each year to use the cottage and all of its amenities and are required to pay an annual maintenance fee. If they own more shares, they receive more time and pay higher maintenance fees.
Their share at Frontenac Shores includes a piece of everything at the resort from the cottage itself, dishes, linens and furniture, to the beach, roads and a boat launch. All of the cottages will be brand new and equipped with high-end furnishings.
Frontenac Shores owners receive five weeks of use for each one-tenth share and pay an annual fee of about $2,400 that covers maintenance of the cottage and property, plus amenities, cleaning, security, property taxes and capital improvement. So, an owner with a one-tenth share gets one week of usage in the summer, three weeks in the other seasons and a floating week. Frontenac Shores allows owners to hold up to seven shares.
The Frontenac Shores cottages are adjacent to 3,000 feet of waterfront.
Further east, Quebecers looking for a water lifestyle in the summer combined with alpine skiing in the winter might consider buying shares in Dupont Estates, which is building cottages on the Rouge River about 30 minutes from Mont Tremblant, Que., 90 minutes north of Montreal, next to 2,000 feet of river waterfront on the Rouge.
Dupont is offering one-sixth shares for between $99,000 and $149,999 (US). The company has owned and operated hotels in Miami, New York, the Dominican Republic and Haiti.
Unlike Frontenac Shores, Dupont Estates buyers can purchase all six shares if they so desire; an annual, still-to-be determined fee covers all ongoing costs. Fractional owners are entitled to eight weeks of exclusive use of the property per year, says Robert Edwards.
All property owners will have access and use of the Red River frontage and beaches that are directly on the development. In addition, there is a 150-kilometre snowmobile and bicycle trail, tennis courts and canoe, kayak and fishing dock. Volleyball and handball courts are accessible to fractional owners.  
Snowbird author Gray advises prospective buyers of fractional properties to speak to existing residents about their experience, and ask the management group for a trial run. "You may tire of going to the same location every year, as your needs may change over time," Gray points out. "Most companies will permit you to stay at their locations for a nominal fee, to see if you like them."
Gray also suggests buyers understand the legalities of future property transfer. If the property is sold, the owners would receive their proportional shares of any increase in net after-sale proceeds. They would also normally be able to rent, sell, or give their ownership portion to anyone they wished.
For more information about the Dupont Estates Rouge River development, call 954-570-9400, email: dupontrust@comcast.net or visit dupontestates.net. Contact Frontenac Shores at: 866-240-5194 or frontenacshores.com. Douglas Gray offers advice on owning recreational property and the snowbird lifestyle at snowbird.ca.