A new way to own a vacation home is for the few to choose: Fractional ownership of holiday homes, also called private leisure clubs, is a relatively new concept that allows you to enjoy four to twelve weeks of property privileges per year in a high-end luxury resort, but at a fraction of the cost of the entire property.
If you want to own an impressive second home complete with personalized services and are located in an expensive resort area, but cannot fully justify the costs, because you will be using it only a few weeks or months a year, this type of real estate agency can turn to you.
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Most mansions offer extensive amenities. These can include an extravagant club and spa, as well as five-star hotel services that you could not expect in a fully owned vacation house, a high-end condo or a timeshare.
Imagine the following: you go on vacation, and you call the staff of your house in a private house. At your request, the staff of the stores for your groceries, dry cleaning clothes, forces your restaurant to order, heats your own splash pool, and also places knick-knacks and favorite photos of family members around your residence. You are met at the airport by an employee who sends you to your home, where just a detailed Jaguar that you need is sitting in your parking space.
Get the picture? Private residences are not your usual second home.
Outstanding locations
Factions or residential clubs have sprung up in exclusive world-class resorts around the world. St. Thomas, Virgin Islands, Puerta Vallarta and Mexico are popular places.
In the United States, the first fractals were located in major ski areas in the west, particularly in Colorado, where real estate was so expensive that for many people homeowners were completely absent. Sometimes they extend to northeastern ski areas. Since then, fractals 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 fractals can be found in Jupiter, Florida; Aspen Highlands, Bachelor-Gulch and Aspen Snowmas, CO; Lake Tahoe, California; and Whistler, British Columbia. Factions located in the United States usually offer good access to major airports, making it easy to arrange transportation.
Management of five-star companies
The key to the success of fractals is their professional management. Most of them are managed by respected hotel companies, world-famous for their world-class resorts. Among them, Ritz Carlton, Four Seasons, Starwood, Intrawest and Millennium, brands known for their five-star services and amenities.
Trouble free property
Part of the appeal of fractals is that they are completely free. In addition to having personal staff for your personalized service, in a private residential club, you don’t have to worry about repairs, maintenance or housekeeping. Everything is included in the price and annual fees and takes care of a professional management company.
Assessment potential
To date, there have been very few fractional resorts. Demand is high. As a result, most likely, there will be a preliminary estimate, rather than depreciation, which usually occurs with timeshares.
Real estate experts say that the prospects for raising investments look great. You can count, at least, on parity of an assessment concerning other real estate in the resort zone in which there is a fractional part.
Prices
To buy a fractional amount, you pay a one-time purchase price, and then an annual maintenance fee that covers all costs associated with owning and using real estate and services.
What are fractional sums worth? Prices vary depending on the size, convenience and location of the individual object. But most of them are in the range of 100,000 to 500,000 dollars. Keep in mind that this is definitely a top-of-the-line home that will cost you two to five times more if you buy directly as a fully owned vacation.
Comparing fractals with timeshare
How to compare fractions with timeshare? They really don't. Fractions are much more exclusive and include much more luxurious amenities and services than timeshare. They are usually large houses, usually from three to five bedrooms. Timeshares usually allow you to use only one or two weeks a year. Fractions offer from two to 13 weeks, and those who do not need to spend consecutive weeks. Select the weeks you want.
As for financing, getting a loan in a bank or mortgage company for a timeshare is difficult. The rates are high, no matter how good your loan is. This is because it is a well known fact that most timeshare depreciates over time. Conversely, banks and mortgage firms believe that fractals value assets and will often treat them like any other second home purchase.
Why do fractals tend to appreciate, while deserters usually depreciate? There are several reasons. With a fraction, more than a dollar of a buyer goes for a high-quality finish and “bricks and mortars” compared to sales, which can be up to 40% -50% with timeshare.
In addition, the values of timeshare historically were bad because of the large number of resales in the market, not to mention the continuous flow of new developments. The fact is that the secondary market for timeshare never developed.
On the contrary, there are a limited number of fractions on the market. Most likely, this number will remain small, because the factions are built only in the best, most desirable places. Consequently, demand is ahead of supply and leads to the recognition of real estate.
Price comparison for hotels and discounts.
Fractions (clubs of private residence) differ from condo-hotels in that you have a certain amount of time when you can use your home for a holiday. Condo hotels are actually villas located in hotels. You can use your device whenever you want and put it in a rental program when you are not using it. Fractions do not offer participation in the rental program.
Fractions are usually larger than most condo hotels. Most fractals offer between three and five bedrooms, while most condos offer studios, one bedroom or two bedrooms. Currently, most condo hotels are located in Miami and other nearby cities in South Florida. Fractions are most common on the West Coast, especially in ski areas. However, both types of real estate are quickly gaining popularity, and soon there will likely be more supplies throughout the country to meet growing demand.
