What consumers need to know about shared vacation ownership

Consumers are still “puzzled” by the many vacation opportunities offered in today’s rapidly changing second home/vacation club market. To keep things simple, we introduced a concise question and answer platform to help consumers decide which type of product best suits their needs. These are starter questions to help consumers sort through the wide range of information available from websites, developers, and consumer advocacy groups.

1. As the owner of your vacation property, how important is the security of your investment to you?

The strongest shared resort ownership model is a fractional purchase. It fills a void for both consumers and developers: it has a great image; offers a variety of products and locations; and many major hotel brands have jumped on board. It is fully titled and secured, just like any other form of real estate. The bottom line is that it fills a need and it works! Today’s Fractional Real Estate Owners and developers have benefited from the legal frameworks designed for Timeshares: they are protected with deeds and title insurance, they have the ability to obtain consumer loans; they can even resell your property.

2. How important is it to you to vacation in various places?

Multi-site clubs (Destination Clubs) like Exclusive Resorts and others offer members many geographic locations to use. Many of these properties are located in the world’s most popular vacation destinations. More often than not, however, club members do not have a real estate deed to support their membership.

3. Do you want to own real estate?

Those who purchase 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 ownership are owners and members of the homeowners’ association made up of all the owners of that project. In other words, you own your property, even if it is only part of it. It is represented by a board of directors of a Homeowners Association.

4. Do you want to ensure the value of your purchase?

If you’re comfortable with a country club-style membership that offers luxury vacations, then a destination club can certainly meet your needs for an expensive entry fee. Regardless of the type of membership or ownership you choose, look for credibility in a developer. What have they done before? Who are they associated with? Do you know the area? Have they fulfilled the repurchase commitments established in the contracts? Will your annual dues or dues go to support the operations of the club or pay the mortgages on the houses in the program? All these elements are key to a solid and safe investment.

5. What do you look for when vacationing?

If you’re shopping for the holidays, what should you look for? When it comes to 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? buyers? Hikers? swimmers? Art lovers? Tourists? Spa attendees? Make your choice wisely and you’ll be satisfied with your investment in your free time.

For more information: www.carlgberry.com www.starresortgroup.com