What is a Residence Club?
October 6, 2015
Residence Clubs (of Private Residence Clubs) offer fractional interests in time at properties and facilities that are owned by the club or related to the club in some partnership way. The following article from Luxury Living Magazine's Best Private Residence Club website is one of many that distiguishes between Residence Club interests and Timeshare interests. When reading through the article, you will see many similarities between the Grand Luxxe Residence Club and other private Residence Clubs. You will also appreciate the differences between a typical Timeshare interest and your interest in the Grand Luxxe Residence Club. Enjoy the article:
The following FAQ’s (frequently asked questions) discuss common features of private residence clubs and the benefits of owning this particular form of fractional real estate. However, since every residence club is unique, you are encouraged to call specific clubs or visit their websites for detailed information.
What is a Private Residence Club?
A Residence Club is a shared-ownership vacation property that offers all the benefits of having a second or vacation home, but allows you to avoid the drawbacks associated with whole ownership and/or timeshare. Conceptually, Residence-Club ownership is similar to membership in a prestigious equity golf country club—except that you reserve time at your vacation home rather than tee times.
What are the advantages of residence club ownership?
Here are the big three:
• Price: Residence clubs dramatically reduce the financial burden of purchasing and maintaining a second home through shared ownership. So, you can own a vacation home that fits your lifestyle and family size at a fractional price.
• Convenience: Residence club ownership allows you to avoid the headaches of upkeep. Your club home is kept clean, secure and well-maintained by a professional staff—giving you more free time to spend vacationing.
• Luxury: Most residence clubs offer vacation-enhancing extras that are simply unavailable with whole ownership, such as concierge service, chauffeured airport transportation, and comfortable owners’ lounges and club houses. Additionally, worldwide exchange programs are available to owners of many of the clubs on this website (for more exchange information, visit http://elitealliance.com/#about).
How do residence clubs differ from timeshare?
Both are fractional-real estate products, but Residence Clubs deliver far more prestige, luxury, exclusivity and vacation time. Residence clubs are designed to feel and function like your personal vacation home. In contrast to timeshares—which offer ownership of a specific week—residence clubs allow you to request vacation times of your choosing each year. In addition to these planned vacations, most residence clubs permit you to schedule last minute vacations on a space-available basis (and typically at no additional cost).
How much does a residence club ownership cost?
The residence clubs featured on this site offer ownerships starting from $70,000. Prices vary from club to club, depending on such factors as location, fraction size and amenities. Predictably, ownership of a luxurious club residence overlooking a secluded beach in Bermuda will cost more than ownership in a more modest club residence occupying a less coveted location. For pricing details, call the individual residence clubs featured on this site, or visit their websites.
If I purchase a residence club, do I own real estate?
Yes. Your fractional ownership is evidenced by a real estate deed that conveys an undivided, deeded interest in one of the club’s residences. Although your ownership deed applies to a specific residence, you enjoy access to all residences within your residence category (i.e. two- or three-bedroom floor plans) for maximum vacation flexibility. As with other real estate, you can sell, will or transfer your club ownership at any time.
What ownership fractions do residence clubs offer?
The residence clubs on this website offer ownerships ranging from 1/6 to 1/14, which is why this is sometimes referred to as interval ownership. Most residence clubs offer only one fraction option, which is typically based on anticipated owner use and seasonality. For example, The Residences at The Chateaux—a luxurious residence club located near the ski lifts of Deer Valley Resort, Utah—offers 1/6 ownerships in order to accommodate the vacation plans of its members during the relatively brief winter season. Residence clubs in locales with long, high-demand seasons can offer smaller fractions because owners have a greater time span to book vacation dates such as the case with The Asheville Club at 151 which offers 1/10th shares.
What if the number of owners wishing to stay exceeds the number of residences available?
Residence clubs are designed to equitably allocate planned vacations when demand for lodging may exceed supply. Most clubs use a rotating reservation system that ensures all owners have equal access to high-demand seasons over the years.
Do owners always stay in the same residence?
No, not typically. To provide greater flexibility and availability, owners have equal access to all club residences of their residence category. Requests for specific residences will usually be granted when possible.
Can owners reserve more than one residence during the same time period?
At many clubs, yes. Because you are not restricted to a particular residence, you may reserve more than one residence at any given time, if sufficient residences are available.
Do owners have guest privileges?
Yes, most do. Guests may stay with you in your club residence during your vacations (based on the clubs maximum occupancy). Also, you may invite unaccompanied guests to use any of your planned vacations. Once again, this varies per club.
Do owners pay annual fees?
Yes. Owners pay annual fees for the professional management, operation and maintenance of club residences and facilities. These fees—which vary from club to club—are significantly lower and are more comprehensive than those of a wholly owned vacation home.
Do owners pay lodging charges when they stay at their club?
No. Owners do not pay for use of club residences. Typically though, they do pay for housekeeping and any additional requested services such as room service or spa treatments.
Source: http://www.bestresidenceclubs.com/frequently-asked-questions/
Compare what you own through the Grand Luxxe Residence Club with the statements in the above article and let us know your observations.
Interesting.....with more to come....