The Reasons to Buy a Private Residence Club or Luxury Fractional

 
December 13, 2009  posted by Charley Ford

 

We hear a variety of reasons as to why people buy into private residence clubs and luxury fractionals. Usually there are several factors that persuade people that this is the right way to go for their vacation property. We've summarized the main reasons here.


Price and Value
The dollars involved is usually a factor, but different folks have different ways of looking at this. The most straightforward way is to equate the dollars you're spending with the amount of time that you'll spend in your property. Most people with second homes find they only spend 3 to 6 weeks a year at their second home. So by buying a luxury fractional you can effectively only pay for the amount of time that you're going to actually use your property.
Some examples of this in the words of actual owners are:
 
"We paid $400,000 for a fractional share of a $3 million lakefront home that we can use for six weeks out of the year, which is as long as we would use it anyway. It has a private beach and a boat dock, and you are sitting on the lake, all for $400,000. With all this," he enthuses, "why would you buy a complete home?" said Art Savage majority owner and CEO of the Sacramento River Cats as reported in Worth Magazine.
 
"It was very affordable, and the whole resort has the lifestyle amenities I'm interested in, I don't see a downside yet at all.'' said Tim Hoagland, of Los Gatos, CA as reported in The Mercury News.
 
"I can't justify owning a place all year if I'm not going to spend much time there, " said Dennis Howe of Cornelius, N.C. as reported by Vacation Homes Magazine.
In an independent survey carried out by research firm Ragatz Associates in 2005, they confirmed that this fractional cost compared to the full cost of whole ownership, was the most important factor motivating high income households to buy private residence clubs and luxury fractional property.
Lots of Relaxation and No Maintenance
The ability to go on vacation and not have to worry about spending your time repairing or maintaining your (second home) vacation property is another big factor that private residence club buyers mention. You can turn up and just start relaxing and enjoying your vacation and at the end of your vacation you can simply head home without worrying about the property.
Or in the words of some owners:
 
"I didn't fancy going on holiday and spending my time maintaining the property and cutting the grass," says Richard Guy of England, on his decision to go fractional, as reported by The Sunday Times.
 
"We are both very busy professionals and want the benefits of a second home without the maintenance headaches." Said Susan Bazinett, of Danville, CA as reported in Proper Magazine.
 
"It felt like home, it was so relaxing. It's easy living, there's no other word for it," said Debbie Leavitt of Winchester, MA as reported in The Boston Globe.
 
"When we realized that we could have one of these homes at our fingertips with no worries about the everyday running of a second home, plus the luxury of a five-star hotel with daily housekeeping, we bought immediately," said Elaine Carmen of Bloomfield Hills, Michigan, as reported in Executive Travel Magazine.
 
 "I don't need that hassle in my life, I need to make a reservation, show up and have the sheets on the bed and the groceries in the fridge – not find out who's going to mow the field or worry about property taxes." said Bob Alter, who lives in Newport Beach, CA as reported by the New York Times.
Full 5 Star Service
Private Residence Clubs and Luxury Fractionals offer the service levels of luxury hotels with 24 hour concierges and daily maid service. Your home will be prepared for you before you arrive and you can just leave it at the end of your vacation and not need to worry about it. The concierge can book tee times, lift tickets, spa times or theatre tickets to ensure that you make the most of your vacation time. Other services can include airport valet, private chefs, childcare and ski butlers to name but a few.
Some of the things that owners say include:
"We can fax up our shopping list and the concierge will stock our kitchen with what we need," said Don Harrier, of Menlo Park, CA as reported by The Mercury News.
 
 "With the superior level of service and amenities, we feel we are getting a one-of-a-kind experience" said Susan Bazinett, of Danville, CA reported in Proper Magazine.
 
"When I show up, my refrigerator is stocked. Every morning my skis are tuned and waiting for me," said Dennis Howe of Cornelius, N.C. as reported in Vacation Homes Magazine.
Luxury Furnishings & On Site Amenities
The appeal of ski-ing/ski-out properties or walking out of your door onto the championship golf course or golden beach, or using the world class spa, fitness facility and other sports and leisure amenities are all major attractions for private residence club buyers. You can also usually leave personal belongings such as sports equipment in storage at your property, so that you don't need to carry it all back and forth.
 
In addition the properties are furnished to the highest standards and offer the highest quality in all elements of design and construction. This can include marble and granite countertops, state-of-the-art entertainment and communications systems, luxurious fabrics and custom-made furniture.
In a Ragatz survey of private residence club owners, which asked them why they bought, 90% of owners said "Quality of finishes, furnishings" was very important to them and 83% said "Extent of on-site amenities, activities" was very important.
 
We continue to see the number of private residence clubs and luxury fractionals increase each year – spurred on by the clear benefits to ownership. We've also seen examples of these private residence clubs increasing in value just as other real estate increases in value over time.
Written by SherpaReport Staff.

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