Travel to the 4th Dimension of Strata ...

Sometimes in Strata you might think that you’re in the Twilight Zone … but don’t worry you’re not.

However, a Fourth Dimension in real estate does exist and I’m exploring that in today’s blog.

Whilst paper and conventional real estate is two dimensional (plotted in plan perspective by depth and width only) …. strata title is three dimensional -  space divided in depth, width and height.  And, over the last 4 or 5 decades that has started to transform everyone’s perspective on real estate and property ownership.  

It’s becoming increasingly common (and acceptable) to only own the parts of real estate that you need for yourself all the time and share ownership of the parts you only need sometimes (like pools, gyms, gardens, etc) or always share with others (like driveways, foyers, building services, etc).  And, most people will own and live in that environment in the future.

So how does real estate (and especially strata title) move into four dimensions ?

Wikipedia says that in mathematics the fourth dimension, or a four-dimensional ("4D") space, is an abstract concept, obtained by taking the rules of our three dimensional space and generalizing them to a space with one more dimension. It has been studied by mathematicians and philosophers for almost two hundred years, both for its own interest and for the insights it offered into mathematics and related fields.

Algebraically it is generated by applying the rules of vectors and coordinate geometry to a space with four dimensions. In particular a vector with four elements (a 4-tuple) can be used to represent a position in four-dimensional space. The space is a Euclidean space, so has a metric and norm, and so all directions are treated as the same: the additional dimension is indistinguishable from the other three.

The fourth dimension in this space was sometimes interpreted as time, but this is no longer done in modern phsyics.

It looks something like this.

And a rotating version (which is pretty cool) can be viewed here or by clicking on the image.

So, whilst this theory is fine, in practice I think that four dimensional real estate is divided into fractional ownership by time (and not space).

You might know this as time-share and it may have bad connotations as a result of less than reputable time-share sales scams and some poor holiday experiences by people in the 80’s and 90’s.

But, these days it’s called ‘fractional real estate‘ and is enjoying a resurgence around the world and Australia.  For instance, there’s the following resources and organizations -

• The Fractional Real Estate Ownership Education website
• The news site Fractional Real Estate News
• A business site called Fractional Life
• An Australian site called Fraction Facts

And, if you’re really interested there’s a Fractional Real Estate Conference ‘Fractional Real Estate Essentials’ in Sydney on 7 July 2010.  The programme is set out below and you can register by contacting Fraction Facts.

  

Fraction Real Estate Essentials | Conference Programme

Morning Sessions: “A Beginners Guide”

8.45am - 9.15am: Registration

9.15am – 9.20am: Introduction & Welcome

John Smith, Managing Director, Horwath HTL Australia & John Stawyskyj, Partner, Blake Dawson

9.20am - 10.00am: Introduction to Fractional Ownership & its Global Evolution

Dr Richard Ragatz, President, Ragatz Associates

10.00am - 10.40am: Is There a Market in Australia?

John Berenyi, Managing Director, Bergent Research

10.40am - 11.10am: Legal Fundamentals for Fractional Real Estate in Australia Rhonda Hare, Partner, Blake Dawson Robert Williams, Partner, Baker & McKenzie

11.10am - 11.40am: Coffee break

11.40pm - 12.10pm: The Role of Exchange Programs

Charisse Cox, Managing Director Pacific, The Registry Collection

12.10pm - 12.50pm: Investment Perspectives and the Role of Fractional Products in Mixed Use Developments: Panel: James Walker, Director, Head of Investments Asia Pacific, Blue Sky Capital Andrew Taylor, Development Manager, Mirvac Hotels & Resorts

Michael Burns, President & CEO, Private Residence Resorts

12.50pm – 2.00pm: Lunch Break Afternoon Sessions: “Key Issues”

2.00pm – 2.40pm: Prerequisites for a Successful Project and Traps to Avoid Presentations by: Paul Dean, Managing Director, Dean & Associates Dr Richard Ragatz, President, Ragatz Associates

2.40pm - 3.10pm: Branded vs Non-Branded Options and the Service Overlay John Small, Chairman, ResortCom International

3.10pm – 3.45pm: Coffee Break

3.45pm – 4.45pm: Sales & Marketing Options and Strategies – What Will Work Best in Australia? Chair: Len Silverfine, President, The Big Idea Co. Panel: Joe Buchanan, Director Head of Sales, Firstlight International

Dean Dransfield, Managing Director, Shared Ownership by Dransfield Leigh Ratcliffe, Chief Executive Officer, Private Residence Clubs Australia Ric King, Managing Director, Lifestyle Fractions

4.45pm – 5.30pm: Q & A and Open Forum Chair: Paul Dean, Managing Director, Dean & Associates Panel: James Walker, Director, Head of Investments Asia Pacific, Blue Sky Capital Dr Richard Ragatz, President, Ragatz Associates Charisse Cox, Managing Director Pacific, The Registry Collection John Small, Chairman, ResortCom International Michael Burns, President & CEO, Private Residence Resorts

5.30pm Depart for Hilton Sydney

6pm to 8pm: ANZPHIC 2010 Opening Cocktail Function at Hilton Sydney

So, why not enter the fourth dimension of strata and own real estate part-time ?

Francesco …