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FRACTIONALS
& PRIVATE RESIDENCE CLUBS
A Fast-Growing
Form of Vacation Ownership
Do you like the idea of owning a
vacation home in your favorite location but don't
want the burden and cost of repairs and upkeep?
Do you love the services of a luxury hotel but dislike
living out of your suitcase?
If you answered "yes," to either of these
questions, you're not alone. A new breed of vacation
home ownership, called "fractional ownership,"
is becoming increasingly popular with busy professionals
looking to maximize their vacation time.
Fractionals
& Private Residence Clubs
Fractional ownership of vacation
homes, also called private residence clubs, is a relatively
new concept that allows you to e njoy up to three months
of home ownership privileges at a top-of-the-line,
luxury resort but at a fraction of the cost of whole
ownership.
Fractionals and private residences clubs
offer you the opportunity to purchase a deeded share
(usually 1/4 to 1/13) in a residence that gives you
a certain number of weeks per year at the property
and use of all amenities.
Because you're essentially only paying for the time
you use, as opposed to paying for all the time with
whole ownership, fractionals can be a much more cost-effective
way to vacation in the most desirable locations in
the United States and around the world.
This type of real estate arrangement is ideal if you
want the benefits of owning an impressive second home
complete with personalized services and located in
a very exclusive community but can't justify the investment
because of limited use.
Prices range widely from $40,000 to more than $1 million,
depending on the location, number of weeks, number
of bedrooms and level of luxury. Residences may be
hotel suites, cabins, townhouses, villas or detached
homes.
Exceptional
Amenities
Fractionals and private residence
clubs typically offer extensive amenities, ranging
from a lavish clubhouse and spa to five-star hotel
services that would not be available with wholly-owned
vacation homes or timeshares.
Imagine this:  You are going on vacation and you call
ahead to the staff at your fractional or private residence
club. The staff stocks your kitchen with groceries.
They place candles and pictures of family members
around your residence, and mount your favorite paintings
that you've had in storage.
A staff person shuttles
you
from the airport to your home where a shiny Jaguar
is sitting in your parking space for use at your disposal.
When you get there, the staff unpacks and dry-cleans
your clothing, gets you theater and ski-lift tickets,
makes your dinner reservations and heats your private
splash pool to the exact temperature you prefer. Everything
you want, basically anything you can think of, is
taken care of so that your vacation is everything
you dreamed.
Personal service is where fractional properties and
private residence clubs clearly outshine traditional
second-home ownership. For most people today, time
is their most valuable commodity. Who wants to spend
it cleaning, unpacking, grocery shopping and mowing
the lawn?
Get the picture? Fractionals and private residence
clubs are NOT your ordinary second home.
Premium Locations
Fractionals or residence clubs have
sprung up in exclusive, world-class resort destinations
worldwide. In the U.S., the first fractionals were
in major ski areas out west, particularly Colorado.
Eventually they spread to northeastern ski areas.
Since then fractionals have begun appearing in golf-oriented
communities like Hilton Head Island, South Carolina
and popular beach states like Florida.
Some of the most popular fractionals can be found
in Miami Beach and Jupiter, FL; Aspen Highlands, Bachelor
Gulch, and Aspen Snowmass, CO; Lake Tahoe, CA; and
Whistler, British Columbia. In almost all U.S. locations,
fractionals offer good access to major airports that
allows for easy, flexible transportation arrangements.
Exchange Weeks
and Travel the World
The ability to exchange weeks with
other resorts and destinations is a great concept
from timeshare days. The good
news is this concept hasn't been abandoned but instead
greatly improved when applied to fractionals and private
residence clubs.
With four or more weeks to enjoy,
 you can choose to spend part of your time at a different
property in another part of the country - or the world.
Most fractional properties participate in an exchange
program that gives owners the ability to reserve time
with other properties that have a similar level of
luxury and service.
Don't feel like visiting your
Caribbean property in the summer? Trade it for a week
in the green mountains of Vermont instead. Always
wanted to see Italy? Reserve two weeks in a Tuscan
villa.
Though getting the location you want often involves
planning ahead, this flexibility is one of the most
exciting aspects of fractional ownership.
Resorts Managed
by Five-Star Companies
The key to the success of fractionals
is their management. Most are operated by well-respected
hospitality companies known worldwide for their first-class
resorts such as Ritz Carlton, Four Seasons, Starwood,
Intrawest and Millennium. These are brand names that
can be trusted with sophisticated, experienced operations
and a proven ability to deliver five-star service
and amenities.
Hassle-free Vacation
Home Ownership
Part of the beauty of fractionals
and private residence clubs is that they are completely
hassle free. In addition to having a staff for personalized
service at your disposal, you never have to worry
about repairs, maintenance or housekeeping. Everything
is handled for you. Best of all, it's included in
the price and annual fees.
Appreciation
Potential
There are a limited number of fractional
resort developments and private residence clubs. As
a relatively new concept and because of the emphasis
on placement in only the most highly-desirable locations,
demand currently exceeds supply. As a result, it is
likely there will be substantial appreciation, rather
than the depreciation that usually occurs with timeshares
which are far more common.
Real estate experts say that the outlook for investment
appreciation appears excellent. You can expect at
the very least an appreciation parity against other
real estate in the resort area in which their fractional
is located.
The resale value of shares at the oldest private residence
club in the country, the Deer Valley Club in Park
City, Utah, has increased 16% a year since 2001, according
to Hobson Advisors, a consulting firm specializing
in fractionals. Prices for a share in the Colorado
Timbers Club, meanwhile, are 50% higher than they
were when it opened in 2000, and there is a waiting
list of potential buyers.
Fractional Pricing
What do fractionals cost? Obviously
they vary based on the size, amenities and location
of the individual property. But most are in the $100,000-$500,000
range. Keep in mind that these are truly top-of-the-line
homes that would cost you two to five times as much
if purchased outright as wholly-owned vacation homes.
Typically, you pay a one-time purchase price and then
a yearly upkeep that covers all of the expenses associated
with property ownership and its use and services.
Want to know more about fractionals
and private residence clubs?
Interested in learning more about
fractional ownership, private residence clubs or destination
clubs or need help selecting a property or club that's
right for you?
Contact Condo Hotel Center today for information,
info@CondoHotelCenter.com
or call (305) 944-3090.
To get information on new fractionals
just coming on the market, be sure to sign up for
our Property
Alerts. |
