Let’s face it: Second residences, aka vacation homes, are boring. We don’t blame you for not being fired up to play that same old game of cards on that same old couch after the same old hike you’ve gone on for years. Or worse, how about that guilt that sets in when you vacation somewhere other than your second home or the headache of dealing with a property management company or maintenance team while you’re not occupying the space? Maybe that’s part of the reason second home purchasing saw a 30 percent drop in 2007, according to the National Association of Realtors. Aren’t vacations supposed to be about adventure and relaxation? Enter the latest and greatest in luxury vacationing: membership in a luxury Destination Club.
With membership in one of the world’s twenty Destination Clubs, gone are the days of vacationing at the same tired, predictable vacation home. Last year, according to the same NAR report, Destination Club membership sales increased between six and eight percent. And it’s not too hard to see why.
The clubs work like this: buyers put money down to purchase their membership. Almost always, this sum is much less than the down payment would be on an equivalent luxury second residence. Members are then free to travel to any one of the residences in their Club’s portfolio, often ranging in size between 2,000 and 6,000 square feet and accompanied by top-of-the-line amenities. Before you arrive, let the concierge team of your club arrange for golf-tee times, adventure activities for the family,
babysitting services, luxury vehicles and chauffeur services, theatre and ski tickets, personal butlers, laundry services, private chefs, equipment rentals, personal shoppers – the list is virtually endless.
But what then, you ask, is the difference between a Destination Club membership and ownership of a fancy timeshare? In a timeshare situation, you buy a week or two at a time at one location that can be traded in for other locations – in essence, you own around 1/52 of a small, often one to two-bedroom property or hotel room, and gain a fraction of its equity each year. When you want out of a timeshare, you must sell it.
A club membership differs because you do not own any portion of the properties in the club’sinventory of luxury two- to five-bedroom homes, typically hovering somewhere in the $3 million range, and outfitted with the best, state-of-the-art gourmet kitchens, audio/visual equipment, furniture and fixtures. However, upon termination of your membership, many clubs offer between 80 and 100 percent return of your joining deposit. In addition, you don’t just get one week of vacation time in the club’s homes. Clubs, on average, offer between two and six weeks of availability in their destinations in such varied locations as Fiji, Aspen, Manhattan, Provence and Cabo.
One such Destination Club, Distinctive Holiday Homes, based in New Zealand, boasts one of the best member-to-destination ratios in the industry at 6:1, and it is one of the only clubs that offers yachts as part of their destination inventory, catering to those vacationers who like their luxury on the high seas.
If earning equity in a property is important to you, then you might want to explore a “fractional ownership” opportunity. In this scenario, big names in luxury hotels offer a way to own just part of a property, reducing the risk of investing in a second home in this unpredictable real estate market, but still allowing a buyer to gain equity.
Take the Ritz-Carlton Residence Clubs, for example. With properties in San Francisco and Lake Tahoe, these residences are perfect for the last-minute, spontaneous getaway. But buying in one of these locations also guarantees owners use of the other Ritz-Carlton Residence Clubs around the globe if Abaco, the Bahamas, Kapalua, Hawaii, or Vail suit your whims at any given time.
Similarly, the Fairmont Heritage Place in San Francisco’s historic Ghirardelli Square offers all of the comforts of a second vacation home without any of the hassle. With all the extravagant amenities you’d expect of the Fairmont, ownership also allows buyers to store personal items year-round to provide a more convenient alternative to packing, which is perfect for the adventurous family who likes to hit the road at a moment’s notice. Owners also have access to all of the Fairmont’s exclusive hotels and luxury destinations around the world.
Whichever vacation option you choose, you can feel confident that you are getting the most out of your vacation dollars and are getting in on the latest trend in opulent holiday stays. You work hard. It’s time you got out of that vacation home rut and started playing hard too.
