Cottage Point waterfront carved up into 12 portions with expatriate buyer expectations
Sydney entrepreneur Drew Muirhead is now seeking to sell his unsold five-bedroom Cottage Point waterfront on Sydney's Pittwater in 12 shares, each costing more than the average Sydney home.
It has been given a nominal $7.8 million value, with each portion listed in $650,000 part ownership shares, while he would retain two himself.
The house was briefly listed for sale in late 2006 and then almost ever since April 2010 with $10 million plus hopes through four different estate agencies.
It's possibly the biggest house within one of Sydney's smallest suburbs, Cottage Point, complete with infinity-edge pool, spa, jetty and pontoon.
Last traded for $1.7 million in 2005, the vendor has previously rejected the suggestion the almost $3.5 million he spent building his dream home was an overcapitalisation.
He says when he had hopes of selling for more than $10 million, he had interest at $8 million.
Designed by architect Richard Cole, it has water views from every room with its pitched ceiling expanding the view to include the bushland behind.
Fractional ownership is a model used in the US and Europe.
"It is not time share," Drew Muirhead says.
“I have chosen this method because the market is at an all-time low and the top end is getting hammered, so I have been researching for the last 12 months to see what else I can do.
"There are few people who have $6 million to $8 million to buy a holiday house these days, and the strength of the Australian dollar is killing the greenback, so we have no expats investing – which is probably where I would expect the buyer to originate,” Muirhead says.
The five-bedroom home was featured on Grand Designs Australia in 2010.
It has been rented out for $20,000 a week in the peak season, with Australian actress Kim Wilson once calling it her "perfect piece of Sydney paradise".
Muirhead is offering the property under a co-ownership agreement drawn up by PodProperty chief executive Jeremy Levitt, who says the method has become more popular especially for holiday homes.
"The owners will have a deeded share of the title of the bricks and mortar and can use their share for their own holiday stay, or rent out your time for a great return," Levitt says.
Trent Brewer of Ray White Terrey Hills says there is usually only one sale a year in Cottage Point, the highest being $6.45 million in 2008.
Have you had experience with part ownership in a holiday property? Tell us your thoughts.
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Meanwhile, Mike Quigley, boss of the federal government's National Broadband Network, has also sold his Mosman mansion recently at $3,555,000. It represented a loss on the $3.6 million paid in 2007.
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