DESTINATION
CLUBS
An Alternative
to
Traditional Vacation Home Ownership
Destination clubs, also called vacation
clubs, are receiving much attention lately as consumers
seek to explore all their options for enjoying their
leisure time away from home.
Destination Clubs are part of a new
wave of luxury clubs that let travelers buy into a
portfolio of luxury vacation homes. They are ideal
for the individual who loves variety and opportunities
to visit different locations.
In destination clubs, members get
to spend several weeks a year in million+ dollar houses
or condominiums in any of a couple of dozen ultra-luxurious
properties in highly desirable locations around the
world. The portfolio of homes in a destination club
are the creme-de-la-crème both from a value
standpoint and location.
The homes in the lesser-priced clubs average a minimum
of one million each and go up to $10 million homes
in the higher-priced clubs. They are situated around
the world in the finest locations money can buy. Destination
clubs also often make available to their members jets
and yachts.
There are two types of Destination
Clubs - equity and non-equity. In the first type,
you receive a deed to a percentage of the entire real
estate portfolio. In the other type, you receive a
right to use.
A membership typically costs several
hundred thousand dollars and has annual maintenance
fees up to $25,000.
The advantage of destination clubs
is a wider choice of properties and the high caliber
of vacation homes. However, unlike fractional ownership
in which owners can resell their shares for a profit,
club members generally don't make a profit. They can
however, sell their membership for partial or full
reimbursement of their membership fee. Their annual
maintenance fees are not reimbursed.
- Who's buying:
People who travel often, want extremely luxurious
accommodations and desire regular access to beach,
ski, and city destinations. Also people who might
be able to afford a second home, like the million-dollar-plus
properties available to club members, but who cannot
in their minds justify spending that much.
- What you get:
Generally, you're buying the right to stay for a
certain number of weeks in a property of your choosing.
- Location:
Exclusive Resorts has 123 properties available in
27 locations including Beaver Creek, Colo.; Tuscany;
Naples, Fla.; New York City; and Los Cabos, Mexico.
Abercrombie & Kent, its next biggest competitor,
is in 30 locations including Belize, North Carolina's
Outer Banks, and Rome. Solstice, a new entrant at
the ultra high-end, plans to have a 94-foot yacht
sailing around the Caribbean, the Bahamas and New
England.
- Price:
Solstice tops the list at $525,000 for its top plan,
plus $21,000 in annual dues. Exclusive Resorts charges
$375,000, plus dues ranging from $15,000 to $25,000
depending on the number of desired days. Abercrombie
& Kent's two clubs have an entry fee of $275,000
or $475,000 and dues of $9,500 or $13,500.
- Resale:
Clubs return a portion of your original investment
(usually between 80% - 100%) but not the annual
dues. There is usually a formula for getting your
initial investment back, to wit, for every two new
members that come into the club, one member is permitted
to redeem his membership.
Interested in learning more about
destination clubs? Contact us at info@CondoHotelCenter.com
or call 305-944-3090.
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