The Growing Popularity of Private Residence Clubs

November 19th, 2009 by fractional ownership No comments »
The luxury home at 1845 North Orchard Street, ...
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Private Residence Clubs are a unique variation on the concept of timeshare resort ownership. Growing by leaps and bounds, these clubs rely on the concept of fractional ownership, They provide increased amenities and services, compared to traditional timeshares, but at an increased cost. If you love luxury, they may be a good fit.

A Private Residence Club, or PRC, as they are commonly know as, is vacation real estate that is both owned and operated by members. There is usually an average of 5-10 owners per unit, and each person owns a fraction of a club residence, in addition to the common areas and the facilities. PRC’s differ from timeshare ownership in that timeshare owners usually have the rights to a specific week limited to a certain unit, although they may have exchange, or floating week privileges.

Like timeshares, clubs are located in vacation areas in prestigious locations, with PRC’s, the location may often be exclusive, which is a large part of the appeal. Private residence clubs have a certain cachet, and appeal to people who are looking to have a large section of time in a luxury home, but do not want to deal with the upkeep of owning a second vacation home on their own.

PRC’s and timeshares also differ with their facilities as well. Larger units, such as 3 or 4 bedrooms, are more typically found at clubs. Often, timeshare units tend to be a studio or a 1 bedroom. An increased level of services are also found at private residence clubs. Most clubs have a variety of concierge services, and offer perks such as year around storage areas, greens fee discount rates, free airport shuttle service, and more. Similar to a hotel, PRC’s provide a level of personalized service and amenities that are not found at the majority of timeshare resorts.

The increased luxury also comes at an increased cost. Private residence clubs have yearly maintenance fees that are often 8-10 times the cost of the average timeshare yearly maintenance fee. Most private residence clubs have limited financing by the developer, as the majority of the purchasers will have access to other sources of financing and are able to make a larger down payment than timeshare owners.

PRC’s provide many of the amenities of a vacation home with hotel-like luxury service. Owners enjoy more spacious units in more prestigious locations than the typical timeshare owner. A private residence club may be a good choice if you are looking to invest in a second vacation home, but want more amenities with less of a hassle. However, if you are looking for more of a bargain, you may want to stick with timeshares on the resale market, which tend to be much less expensive.

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Timeshare Explained: What is Timeshare?

November 19th, 2009 by fractional ownership No comments »
Sutton Hall, Sutton-under-Whitestonecliffe, bu...
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A time share is a name given to a piece of property shared among number of owners. This involves use and cost of maintaining the property. Although the majority of the timeshare properties are condominiums and resorts, you can also find a hotel timeshare, a motor home timeshare, a cruise timeshare, or even a campground timeshare. The choices are increasing by the day.

The idea of a timeshare property originated in Europe in the 1960s, when property values were skyrocketing and it was impossible for people to afford a full time vacation house. People found that by sharing ownership, the burden of maintenance and other costs on a single person were greatly reduced. These also greatly enhanced the fortunes of real estate developers, because they were able to successfully market and sell the properties to a greater number of people.

A key point to remember in timeshare properties is that a timeshare is owned by a number of people who have no relation to one another, so it’s not like a standard home ownership. A technical definition of timeshare property is that owners have specific time (often one week per year) that they own in a property.

As more and more properties are converted into timeshare properties, flexible timeshare options have taken the foreground. Flexible timeshares offer owners the option of choosing more than one timeshare destination and more than one specific time of the year.

Timeshare properties are usually found in warm destinations like Florida, where people like to vacation a lot. They can also be found in cold weather areas near ski resorts, like Sun Valley in Utah.

Timeshare properties are typically furnished in full and usually have one to three bedrooms, multiple bathrooms, a kitchen, and a living room. Many timeshare properties also come with indoor or outdoor swimming pools–a common feature of most timeshare properties nowadays.

The typical duration of a timeshare ownership unit is one week. Depending on what time of the year you own the timeshare, the price may vary. For example, a timeshare property in the month of April in Florida will be much higher than in a less desirable month like August. Rates may vary with the season and demand.

Some resorts give color coding to different seasons, depending on the demand. For example, some resorts term high demand season as red season, meaning the prices of the timeshare will be highest in that season.

Timeshares can usually be inherited by your children, just like any other real estate property. Timeshare properties offer not only a great vacation, but also a great investment. Most people rent their timeshares to others when they do not use their timeshare. Timeshare rental has a double advantage: you earn rent, along with the appreciation of the property with passage of time.

Timeshare properties are exchangeable and tradable with other properties in most cases. While it may be easy for the owners of red season timeshares to exchange their unit with other owners, it might be difficult or even impossible for owners of low season timeshare owners to get a high season timeshare unit in exchange.

You can purchase timeshares through financing, but usually, resale properties purchased from individuals are paid in cash. The cost of management and maintenance for common areas, like pools and tennis courts, are paid by timeshare owners. Fees may vary, so always be sure to find out what the fees are before buying a timeshare.

There are many types of timeshare properties. A “fixed unit, fixed week, deeded timeshare” allows you to own a specific timeshare at a specific time each year. A “floating time” agreement allows you to be flexible about the dates that you can use your timeshare. In these cases, reservations may on a first come, first serve, because many owners would like to go for that option. A “right to use timeshare” is a leased timeshare, where you no longer have rights to the property after the lease expires.

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How to Sell your Timeshare

November 19th, 2009 by fractional ownership No comments »

To start with, old-timers of Timeshare owners know this most important rule: Never pay an up-front fee in an effort to sell your Timeshare! Either if the fee has been called in many terms such as: appraisal fee, market analysis fee, marketing fee, advertising fee or even new “fee” terms not been heard in the timeshare trading market, I tell you, all the results turned out historically bad ever since.

Mostly, these companies do it through cold-calls and that is one important tip that you must remember.

There are times that you may have faith in the credibility of the company and he has a legitimate buyer or even a list of several buyers that are waiting to do a deposit on your week. That the company needs is a small hundred of pounds as a deposit from you and that it is refundable. Even if that the company does have a money back guarantee scheme.

Once you fall into this trap and your money is deposited in these companies, then wave goodbye to your hard earned money. Even after going through all the efforts of trying to contact these companies and despite guarantees or promises they told you, the bottom line is that you won’t get your money back. Never bother complaining to them, it will be just a waste of your time.

Timeshare Appraisal

Now, the tip here is that try to be as realistic as you can be you’re your price if you plan to advertise this online or through media (newspapers, tv ad). What you should know is that timeshares being sold in a resale market will have a par value of only 10%-30% of the price when you bought it with your developer. Please don’t be shock by this realistic figure coz it’s true.

One more thing to consider is that there are lots of multiple listings for the same or similar timeshares throughout the web and buyers do know where to find these listings and tends to buy the one listed with the lowest bid price. So if you plan to list your timeshare week, do it with the low price scheme. Or else expect then that your week will be in that listing for a period of time.

Online and Offline Advertising

One great move is to advertise your timeshare offline and online. Meaning, advertising through your local town through fliers, newspaper ads, radio or TV and inform friends, colleagues and other networks that you may have about your timeshare and give them commissions. While doing online advertising is visit websites that offers free timeshare resale services that you can advertise for free or for a low cost (e.g. Timeshare’s Largest Multiply Listing Service, e-Bay).

Selling Price vs. Timeshare Loan

Does your timeshare have an outstanding loan? To tell you frankly, there are a few potential buyers that will be having an interest in buying timeshares that has a loan on it.

The best way to deal with this is to consider refinancing your loan. Getting a financial institution that offers a low interest rate with a monthly payment plan that will not hurt your budget. Other ways that may save your timeshare is to get a home mortgage refinancing scheme or open up a home equity loan that will help you pay that timeshare loan with high interest rates. Solving this problem will increase the marketable price of your timeshare.

Buyers Need Accurate Information

When the time comes and you have been receiving calls and emails from prospective buyers. Be prompt in replying through those email messages and practice courtesy with all your calls, to be able to be considered for a successful purchase of your timeshare. One more thing to consider is to have a reasonable counter offer once a buyer offers less than what you have offered.

Accurate information from your advertisements and online postings are also a measure of your credibility as a seller. Providing wrong information from what they actually read and what you are telling them will be a disaster of losing a prospective client. In short, nobody wants to deal with sellers who are not consistent with their information especially with your Timeshare week details.

Handling your Positive Buyer

In the event that you and your buyer is in the closing stage, my tip is that every little detail of the Timeshare sale is indicated in black and white or in a contract such as ownership transfer and payment terms. Getting some assistance from a lawyer of an online Timeshare consultant will even make the transaction smoother and eradicate further hassles in selling your Timeshare.

Donate your Timeshare

In the event that after doing all the necessary tips indicated in this article and still there has been no success in selling your timeshare then the last option to do is to donate your timeshare and make a tax deduction claim for it.

Generally speaking, selling your Timeshare would really take a lot of your time, effort and patience to make a successful sale. Hence, if you need more advice from experts on this field then I recommend you to visit the site in the author’s bio of this article and they can help you out further for free.

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Used Timeshare Property Vs. Buying a New Timeshare Property

November 19th, 2009 by fractional ownership No comments »
timeshare ownership in puerto-rico
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With so many options out there, it can be a daunting task to decide where to buy your first timeshare. Let alone the decision to buy a timeshare resale or directly from the timeshare resort or developer. Both of these options have there pros and cons which makes it that much more complicated. Buying a timeshare resale from an auction site, licensed broker, or even a classified ad is still a relatively new concept when the only option before was to buy directly from the resort or developer. The Internet has been vital to the growth of the timeshare resale industry. Websites like eBay.com, bidshare.com, and redweek.com have given potential buyers more information on the timeshare resale properties as well as a variety of buying options.

Think back ten years ago when a timeshare buyer could only buy a timeshare through a time consuming presentation by the timeshare developers. The buying decision for a potential buyer was mostly based on impulse buying rather than someone’s research. This of course changed once the internet auction sites came along and offered the necessary tools to allow someone to research and analyze the prices before even going into the timeshare presentation. The timeshare buyer is now able to make a more informed decision about purchasing a timeshare than earlier. Timeshare buyers can also bypass the entire mind-numbing timeshare presentation by purchasing a timeshare resale. Consider that the average timeshare presentation can take 90 plus minutes or even longer. Furthermore, if you attended a presentation for the purpose of the “free gift,” you were then subjected to extremely high pressure selling techniques to buy the timeshare right then and there.

When discussing the cost comparisons of buying a new timeshare or buying a timeshare resale, the cost of a new timeshare unit will have the cost of the advertising, the presentations, the free gifts, etc. which could amount to a ridiculous 40% of the cost of the timeshare! There are times that the all of the aforementioned costs could equate to more than what it would cost to buy a timeshare resale. If you were to buy a timeshare through the resale market, you will likely save 30%-50% off the cost of buying a new timeshare. In addition, buying through the timeshare resale market will give you more choices, as well as allow you to select the unit that you want from any area that you want. You will also put your mind at ease knowing that you can get the best price provided you do your homework. Even if your “homework” took hours to do, wouldn’t that be worth it to save thousands of dollars off of buying a new timeshare?

However, there are good reasons to buy directly from the timeshare developer or resort. Many of the timeshare resorts are owned by household names like Disney, Wyndham, Marriot, Hilton, etc. But when you buy through the timeshare resale market, the trust factor is low and your investment might not even be secured versus buying new. Remember that these timeshare developers spend enormous amounts of money to develop the timeshare resort and also have put their reputation on the property to further the trust factor with the timeshare buyer. These developers will include the latest and best amenities which you can never get from a resale unless it is a fairly new property. The other factor in buying through the timeshare developer is that your purchase will likely have other incentives built in to the cost. For example, it is common to get bonus weeks, or discount tickets on the local attractions, car rentals, and more. These benefits and perks will likely not be available to you through the timeshare resale market as the developers oftentimes do not include these perks in resale units. Also remember that the timeshare developers will typically have many financing options that you would likely not get from the resale market.

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Live Like a Millionaire With Fractional Ownership

November 10th, 2009 by fractional ownership No comments »
Lamborghini Gallardo LP560-4
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Want a more luxurious way of life – but lack of millions of dollars in cash to finance this? You’ve worked hard and done well, but the corporate jet, the yacht and the shore house 4 million U.S. dollars out of reach for now.

The fractional ownership may be the answer to your dilemma! With fractional ownership, a high asset prices (jet, yacht, vacation home, classic car) is owned in partnership with several others, each owns a percentage share of assets and defines the rights and privileges their use. The management company provides the continuity and organization to allow share owners free access problems and predictable for good.

This concept works well with many types of assets that can be used regularly. As an example, second homes are occupied by their owners, 2 to 4 weeks per year on average. If you have visited a marina, lately, he has observed that most of the strips are occupied by ships – ie not in use. Corporate jets sit idle until travel is required by the executive.

Fractional ownership gives the owner a share, reliable access to luxury assets that you want or need, but are not willing to pay for 365 days a year. And because you are part of a group of owners, all maintenance, management, maintenance and repair costs, taxes and insurance are shared among the group. The company offers content management for use by owners and is responsible for routine maintenance, accounting and repairs.

In summary: what you want, whenever you want – without the headaches, expense and responsibility of individual property altogether.

Fractional Ownership is being used more and more for ultra-luxury items. Many companies selling fractional shares of corporate jets (flexjet.com, netjets.com) turboprop aircraft (avantair.com) and helicopters (heliflite.com, sikorskyshares.com).

Fractional ownership of luxury boats and yachts – both power and sail – is widespread. Companies like monocleyachts.com, eusamarine.com and provide seanetco.com fractional ownership of yachts in the east and west coasts, the Caribbean and the Mediterranean.

Sale of cars like the Lamborghini Murcielago, Lamborghini Gallardo, Rolls Royce Phantom, Bentley Continental GTC, Aston Martin Vanquish S, high-end Porsche and Ferrari 360 Spider are accessible through fractional ownership, with companies like extremecarshare.com, curvyroad. com, and clubsportiva.com. Fractional Shareholders in these clubs might decide on a membership that allows the possession of his deputies from different cars in the fleet, not just owning a fractional part of a classic car.

RVs are another category of luxury item that is often more than episodic use, so it gives the fractional ownership wisdom here as well. Both coachshare.com and sharerv. com offer fractional shares of luxury coaches from Monaco.

Racehorses have long been owned by the unions – groups of owners coming together to spread the expense and risk. Associate unions were often friends or partners who know each other and privately created the union. Now, the fractional ownership models are coming into use. In Britain, the 2005 Vodafone Derby winner made history in the racing world: Motivator, the winning horse, a breeder outside of super-rich or a famous person, but by a syndicate of 230 people from the business classes.

The idea of fractional ownership creatively expanded in many areas. Wine Estate Capital Management offers fractional ownership of vineyards in France and South Africa. Many find it valuable art doners to donate a fractional part of his art to the museum of their choice, thereby ensuring continued enjoyment of the museum of his collection to a portion of each year.

Luxury handbags are now available for fractional ownership, so if you want to diversify your collection without having to buy them all, their dilemma is resolved. Shouldercandy.com offers Chloe handbags, Balenciaga, Louis Vuitton, Prada, Burberry, Marc Jacobs, Chanel and more.

The most widespread use of the idea of fractional ownership, however, is in the field of holiday home. Due to the growing appeal of fractional ownership vacation home and the added challenge of dealing with real estate, this topic will be a future article.

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