A new way to own a holiday home-for a few people: Partial ownership of holiday homes, also known as private residential clubs, is a relatively new concept that allows you to enjoy four to 12 weeks of home ownership privileges in high-end luxury resorts each year, but only costs a small amount of overall ownership section.
If you want to own an impressive second house, it has personalized service and is located in an expensive resort area, but you can’t reasonably justify the cost because you will only spend one year Use it in a few weeks or months, this type of real estate arrangement may appeal to you.
Plenty of facilities
Most private residential clubs provide a wide range of facilities. These may include luxury clubs and spas, plus five-star hotel services, which are the kind you can’t expect in a sole proprietorship, high-end apartment or timeshare hotel.
Imagine this: you are on vacation and call the staff at your private residence club home in advance. According to your request, the staff will shop for you, buy clothes, dry clothes, book restaurants, heat your private splash pool, and put gadgets and family favorite photos around your residence. A staff member will pick you up at the airport, the shuttle will take you to your home, and a Jaguar that has just stopped is sitting in your parking space for you to use.
Take the photo? The private residence club is not your ordinary second hometown.
Score or residence clubs have sprung up in the world’s unique world-class resorts. St. Thomas, the Virgin Islands, Puerta Vallarta and Mexico are popular locations.
In the United States, the first fraction is located in the main ski areas of the west, especially Colorado, where real estate is expensive, so for most people, it is impossible to completely own a second home. Eventually they spread to the northeast ski area. Since then, score subsections have appeared in golf-oriented communities such as Hilton Head Island, South Carolina and popular beach states such as Florida.
Some of the most popular scores can be found in Jupiter in Florida. Aspen Heights, Bachelor Canyon and Aspen Snowmass (CO); Lake Tahoe, California; and Whistler, British Columbia. The fractional part located in the United States usually provides good access to major airports, thus making transportation arrangements easier.
Five-star company management
The key to decimal success is their professional management. Most hotels are operated by well-known hotel companies that are world-renowned, which are known for their world-class resorts. These include the Ritz-Carlton, known for its five-star service and facilities, Four Seasons Hotel, Starwood Hotel, Intrawest and Millennium.
Part of the appeal of decimals is that they are completely trouble-free. In addition to having staff who can provide you with personalized services, in a private residential club, you don’t have to worry about repairs, maintenance or housekeeping services. Everything is included in the price and annual fee, and is handled by a professional management company.
So far, few resorts have been developed. The demand is high. As a result, there is likely to be a substantial appreciation, rather than the depreciation that usually occurs during timeshares.
Real estate experts say that the prospects for investment appreciation seem good. You can at least expect to achieve parity with other real estate in the resort area where the fraction is located.
To purchase the fractional part, you need to pay a one-time price and then an annual maintenance fee, which should include all costs related to the ownership of the property and its use and services.
What is the fractional cost? The price varies according to the size of the individual house, convenience facilities and location. But most are between $100,000-$500,000. Remember, these are truly top-notch homes, and if you buy them directly, the price is 2 to 5 times that of a fully-owned holiday home.
Comparison of scores and time sharing
How does decimal compare to timeshare? They really don’t. The fractional part is more exclusive, and it provides more luxurious facilities and services than a timeshare. They tend to be larger houses, usually three to five bedrooms. Timeshares are usually only used for one to two weeks per year. The fractional part provides a period of 2 to 13 weeks, not necessarily consecutive weeks. Choose the week you want.
Regarding financing, it is difficult to obtain loans from banks or mortgage companies in time sharing. Regardless of your reputation, the rate is high. This is because of the well-known fact that most timeshares depreciate over time. On the contrary, banks and mortgage companies consider decimals to be value-added assets and usually treat them like other second-hand houses.
Why do timeshares usually depreciate and scores tend to appreciate? There are two reasons. Using decimals, more of the buyer’s money is spent on high-quality finishes and “bricks and plaster”, while sales commissions account for 40%-50% of the timeshare.
In addition, due to the large number of resales in the market, the value of timeshares has historically been poor, let alone continuous new development. The fact is that the secondary market for timeshares has never really developed.
In contrast, there are a limited number of decimals on the market. Since the score is constructed only in the best and most ideal position, the number is likely to remain a small percentage. As a result, demand exceeds supply, leading to real estate appreciation.
Decimal and apartment hotel comparison
The fractional part (private residence club) is different from an apartment hotel because you have a fixed time to use the holiday home. An apartment hotel is actually an apartment hotel. You can use your device at any time, and you can place it in the rental process when you are not using it. The fractional part does not provide participation in the rental program.
Decimals tend to be larger than most apartment hotel units. Most scores offer three to five bedrooms, while most apartment-style hotel units are studio apartments, one bedroom or two bedrooms. Currently, most apartment-style hotels are located in other cities near Miami and South Florida. Decimals are most common on the West Coast, especially in ski areas. However, both types of real estate are rapidly gaining popularity, and soon there will be more supply across the country to meet growing demand.