There are many types of vacation ownership options for those individuals that are interested in an alternative to full ownership real estate. Vacation ownership is an excellent choice for those who only want to invest in a property for the time that they will spend vacationing instead of being a full owner. The alternatives mean that you will just purchase a fraction of the property for the weeks or months that you want to use it in the year. Some vacation ownership programs, such as Fractional Ownership will even provide you with a deed or title, or it could be a right to use contract that can range from 25-30 years.
Let’s explain the options…
Vacation Ownership and Timeshare
Mostly when we think of vacation ownership we are referring to timeshare, which is when you purchase timeshare membership rather than a particular property on a right-to-use program. Nowadays, most reputable timeshare providers are moving towards points-based flexible programs where you use points towards booking your property when you wish and for however long you wish. Timeshare vacation owners many also purchase a vacation condo or villa with the ‘floating system’ for a week or more, which is perfect for scheduling vacation time. Generally, timeshare vacation ownership is purchased once in a lifetime for around 30 years with upgrades possible, and can be financed through the developer. Maintenance fees will be added depending on the property location, amenities, and the size.
Private Fractional Ownership
The difference between timeshare and fractional ownership is that fractional ownership means that you will be provided with the deeds to your share. This type of ownership has the same kind of benefits of owning a second home, but you won’t be paying the high prices of full ownership. The average vacation home is only used a couple weeks a year, so private fractional ownership is a great option. Many high end hotels or boutique properties provide extra services and amenities that you will be able to take advantage of too, making fractional ownership a luxury product. Along with the purchase price of the private fractional ownership you will have to pay the annual maintenance fees, so consider this.
Destination Club Ownership Options
You will not be buying a designated property if you decide to go with the destination club ownership. You will have the option of choosing from portfolios of top homes that the club company possess. Many of the destination club provides their members with concierge services and members can stay at the destination club for up to nine weeks or less. The price will be a one-time fee, but you may have to pay nightly fees depending on your membership privileges.
Condo Hotel Ownership
A hotel owners may sell portions of their hotels to buyers. As a buyer, you can use the room for your vacation needs or rent it out through a rental program. The buyer is the owner and will receive all the money from the rooms that are rented, and as the buyer you can stay at the hotel, use their services and amenities. Remember, there are usually annual fees with condo hotel ownership and the price can vary depending upon the real estate market.