Consumers are still “baffled” by the various vacation opportunities offered in today’s marked second home / vacation club. To keep things simple, we present a concise question and answer platform to help consumers decide which type of product best suits their needs. These are initial questions to help consumers sort through the wide range of information available from websites, developers, and consumer advocacy groups.

1. As a vacation property owner, how important is the security of your investment to you?

The strongest shared resort ownership model is a fractional purchase. It fills a gap for both consumers and developers: It has a great image; offers a variety of products and locations; and many of the major hotel brands have joined. It is fully titled and secure, like any other form of real estate. The bottom line is that it meets a need and it works! Today’s fractional real estate owners and developers have benefited from legal frameworks designed for timeshare: they are protected with title and insurance, they have the ability to obtain consumer loans; they can even resell your property.

2. How important is vacationing in various places to you?

Multi-site clubs (destination clubs), like exclusive resorts and others, offer members many geographic locations to use. Many of these properties are located in the world’s most popular vacation destinations. More often, however, club members do not have a real estate interest deed to support their membership.

3. Do you want to own a real estate property?

Those who buy a membership in a multi-site club are just that, “club members”. They are not real estate owners. Those who purchase a real estate interest in a private residence club or high-end fractional ownership are owners and members of the homeowners association comprised of all owners of that project. In other words, you own your property, even if it is only part of it. It is represented by a board of directors of a Homeowners Association.

4. Do you want to ensure the value of your purchase?

If you’re comfortable with a country club-style membership that gives you luxury vacations, then a destination club can certainly meet your needs for an expensive entry fee. Regardless of the type of membership or ownership you choose, look to a developer for credibility. What have they done before? Who are they associated with? Do you know the area? Have they fulfilled the repurchase commitments described in the contracts? Will your dues or annual fees support the club’s operations or will they pay for the mortgages on the homes included in the program? All these elements are key to a solid and safe investment.

5. What are you looking for on your vacation?

If you are shopping for vacation products, what should you look for? Since this is real estate, the first component is always the location in a popular vacation destination area. Make sure to decide on the area that suits your family’s needs. Are they skiers? Buyers? Hikers? Swimmers? Art lovers? Tourists? Attendees at the spa? Make your choice wisely and you will be happy with your investment in your spare time.

For more information: www.carlgberry.com www.starresortgroup.com