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PRICES AT
RITZ-CARLTON
PRIVATE RESIDENCE CLUBS
 Q:
With regard to Ritz-Carlton private residence clubs,
is pre-construction pricing usually the lowest the
price for a property, even better than resale prices?
A:
I'd have to say absolutely, unequivocally, yes. Private
residence clubs are typically built in upscale markets
where real estate values are escalating rapidly, making
it less feasible for an investor to shell out the
money to purchase an entire vacation home when he
might only use it 30 days or so a year. That is why
fractionals (which is just another name for private
residence clubs) make so much sense.
Now if you figure that a property
will take anywhere from 1-3 years to sell out of all
of the developers units, the property will likely
have already had a few years of appreciation figured
in to resale prices.
Now just last week I had an investor
asking me about resales in the Ritz-Carlton in Aspen.
I deduced that he was asking because he was looking
for something inexpensive. My advice to him resulted
in a sale to him at a different club at a price that
saved him between $60,000-$80,000. Best of all, by
acting quickly, he purchased his unit prior to the
price increase which was about to take place.
How far in advance does Ritz let people
know where the new properties are going? I don't know
the answer to this. However, I would imagine that
their authorized agents, like my company for instance,
will know far in advance of the general public as
we are frequently in touch with our sales consultants
at their existing four clubs.
If you are seriously considering
a purchase at any of the Ritz-Carlton Clubs, it is
better to move forward now than later. When additional
clubs are added, prices will be increased as, through
their exchange program, each unit in all of their
locations becomes more valuable.
The above question(s) were submitted
via e-mail by a visitor to www.condohotelcenter.com.
The answer was prepared by Joel Greene, a licensed
real estate broker with Condo Hotel Center which specializes
in the sale of condo hotel units and fractional ownerships
in private residence clubs.
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