Are you wanting to purchase real estate in a foreign country and need to know the alternatives in doing this? If so, below we have provided information about vacation ownership in a nutshell. Find out about purchasing timeshare, fractional, destination clubs, condo hotel and more. There are so many ways that you can join the ladder of vacation ownership.
Vacation Ownership in a Nutshell
Right-to-use property ownership is what you get when you buy a timeshare. You can purchase time at a condo or villa through timeshare ownership but never become the actual owner of the property. This has its advantages. Most people who want to have a second home in a foreign country can only use it for a few weeks each year. Timeshare allows you to purchase the time that you want without the added responsibility of the time when you are not there to enjoy your property.
Timeshare vacation ownership usually comes in two main options: points-based systems and fixed weeks. Points mean that you are the owners of enough points to stay in a particular unit for x amount of weeks each year. These points are flexible and you can stay longer or shorter periods than a week, mix and match the properties that you reserve and even use points towards all inclusive upgrades to you stays etc. Fixed weeks are, as the name suggests, a particular week each year, which you can use, swap for other dates or even rent. Sometimes you can buy floating weeks, which is a week in a particular season. The timeshare vacation ownership is usually paid once to the developer or through financing monthly payments, plus yearly maintenance fees that are based on the size, destination, and features of the timeshare that you purchase.
Fractional Ownership / Private Residence Clubs
While timeshare ownership is a great way to own vacation time at a resort, fractional vacation ownership is great when you want to own real estate too. Cheaper than purchasing full ownership of a property, fractional vacation ownership can be bought for less money and responsibilities for the time that you think you can actually dedicate to spending in your second home. The fractional ownership is just like owning a vacation home, but the property is at a top hotel or boutique with services and amenities.
You will not be purchasing a property with the destination club membership, but you get to choose which homes to stay at. The company will provide you with many homes to pick and many of these homes comes with concierge services too. The stay at the destination clubs can go up to nine weeks and the price is paid once. Sometimes, guests are charged nightly fees.
The public can purchase hotel rooms from the owner of the hotel. You, as the buyer can use it for your personal stay and you can rent it out if you are not using it for your selected time. The hotel will manage the rentals and send the proceeds to you. The condo hotels is owning real estate in the best location, but with added amenities and services. The pricing for condo hotels will depend on the real estate market and there will be annual fees or dues to be paid too.