Consumers are still “baffled” by the various vacation opportunities offered in today’s changing second home/vacation club marked. To simplify matters, we present a concise question and answer platform to help consumers decide what kind of product best suits their needs. These are beginning questions to help consumers sort out the wide array of information available from web sites, developers and consumer advocate groups.
1. When owning your vacation property, how important is the security of your investment to you?
The most solid shared resort ownership model is a fractional purchase. It fills a void for both consumers and developers: it has a great image; it offers a variety of products and locations; and many major hospitality brands have jumped aboard. It is fully deeded and secure, just like any other form of real estate. The bottom line is that it meets a need and it works! Today’s Fractional Real Estate Owners and developers have benefited by the legal frameworks designed for Timesharing: they are protected with deeds and title insurance, have the ability to obtain consumer loans; they can even re-sell their property.
2.How important is vacationing in various locations to you?
Multi-site clubs (Destination Clubs) such as Exclusive Resorts and others offer members many geographical locations for their use. Many of these properties are in the most popular vacation destinations in the world. However, most frequently, club members do not have a deed to the real estate interest backing up his/her membership.
3. Do you want to own real estate?
Those who buy a membership in a multi-site club are just that, “club members.” They do not own real estate. Those who buy a real estate interest in a private residence club or high end fractional property are owners and members of the owner’s association comprised of all the owners at that project. In other words you own your property even if it is just a portion. You are represented by a board of directors of a Homeowners Association.
4. Do you want to ensure the value of your purchase?
If you are comfortable with a country club style membership which provides luxurious vacations, then a destination club can certainly meet your needs for an expensive buy-in fee. Whatever type of membership or ownership you choose look for credibility in a developer. What have they done before? With who are they associated? Do they know the area? Have they honored the buy-back commitments outlined in contracts? Are your annual dues or fees going to support club operations or are they going to pay the mortgages on the homes in the program? All these elements are keys to a strong, secure investment.
5. What are you looking for in vacationing?
If you are out shopping for vacation products, what should you look for? Since it is real estate, the first component is always location in a popular vacation destination area. Be sure to decide on the area that fits your family’s needs. Are they skiers? Shoppers? Hikers? Swimmers? Art Lovers? Sightseers? Spa goers? Make your choice wisely and you will be happy with your investment in your leisure time.