There are different kinds of ownership in Hawaii. Most people are aware of Fee Simple ownership, which is most common. Another type of ownership is Leasehold ownership, where you own the condo or home, but not the land. But today, I am going to discuss Fractional Ownership, which is available on Kauai at Timbers Resort. Here are some answers to questions I frequently get:
Is Fractional Ownership like a Timeshare?
No. Unlike Timeshare ownership, Fractional Ownership is Fee Simple, Deeded Ownership that allows for flexible, unlimited use, subject only to reservation procedures. Like Whole Ownership, the Fractional Ownership in the Private Residence Club is a true real estate asset deeded into perpetuity. The asset may be retained in perpetuity, transferred, bequeathed to heirs, or resold anytime.
How Does Fractional Ownership at Timbers Resort Work?
It depends on whether you buy 1/12 (Maliula Residences) or 1/6 (Kaiholo Residences) ownership. For 1/12 ownership, you get:
- Planned Vacations – Owners select three (3) Planned Vacation weeks. After all Planned Vacations have been confirmed, the remainder of the calendar year is open for owners to access via Space Available and Short Notice Vacations.
- Space Available Vacations – Owners may reserve one (1) Space Available Vacation week after the Planned Vacation weeks are reserved. Once an owner checks in for their reserved Space Available week they can immediately reserve another Space Available Vacation week. There is no limit to the number of Space Available Vacation weeks an owner may use and there is no additional cost outside of housekeeping.
- Short Notice Vacations – May be booked within thirty (30) days or less from arrival. Once an owner checks in for a Short Notice Vacation, they may immediately reserve an additional Short Notice Vacation week. There is no limit to the number of Short Notice Vacation weeks an owner may use and there is no additional cost outside of housekeeping.
- The only difference between 1/12 and 1/6 ownership is the amount of time deeded. 1/6 Ownership comes with six (6) planned vacation weeks, the ability to reserve two (2) Space Available Vacations weeks at once.
What is Timbers Reciprocity Program and How Does It Work?
Timbers Reciprocity Program (TRP) provides the opportunity for Timbers Kaua’i Owners to access planned vacations across the entire global portfolio of 16 resorts in the Timbers Collection. Residence Club Owners may, if they wish, deposit any of their Planned Vacations into TRP which then provides a credit they may use toward reservations at any of the other resorts in the collection. Maliula Residence Club Owners may deposit up to three (3) Planned Vacation weeks. Kaiholo Residence CLub Owners may deposit up to six (6) Planned Vacation weeks into TRP. Whole owners may deposit up to six (6) weeks annually into TRP.
The only cost is a $250 facilitation fee and housekeeping fees may apply.
Can Owners Rent Their Residence?
Yes, Owners may rent their residence. Timbers Luxury Rentals brings its vast database and marketing channels to ensure rental success. Plus, the revenue split between the Owner and Timbers Luxury Rental ranks as one of the most advantageous in the industry with an 80-percent share of net rental proceeds going to the Owner.
In order to ensure the highest flexibilty of use for the Maliula and Kaiholo Residence Club, the number of weeks that may be rented is limited to one (1) week for the 1/12 Maliula Residence Club and two (2) weeks for the 1/6 Kaiholo Residence Club.
What Are Some of the Owner Privileges at Timbers Kaua’i?
- Daily housekeeping
- Preferred owner discounts in-resort
- Private on-site concierge
- Access to fresh organic produce from the Farm at Hokuala
- Hawaiian cultural programming
- Private owner storage
- Personal adventure guides, custom excursions, and valet beach services and gear
- Pre-arrival grocery shopping
- Airport and in-resort transportation
What Is Available for Purchase Currently? (At the time this article was published)
- Maliula 1/12 Deedeed Ownership Interest – $445,000
- Kaiholo 1/6 Deeded Ownership Interest – $955,000
- Maliula Luxury Residences – $3,990,000 to $4,390,000
- Laola Luxury Townhomes – $5,850,000 to $7,250,000 (Pre-Construction)