A New and Growing Vacation Ownership Option

 

One reason for the switch — most clubs provide a guaranteed refund of deposit, which may be more appealing than the liability of purchasing a second home in a potentially risky real estate market.

“With the current market, people are looking for alternatives to owning a vacation home. They still desire the quality time spent on vacations, but they want options,” says Steve Greer, founder of the LUSSO Collection, a boutique luxury travel destination club. “Destination club members get the opportunity to have luxury vacations around the world, without the hassle of second home ownership. Plus they have peace of mind because of the refund available on their deposit.”

Besides being concerned about the unstable real estate market, many people are finding that having a second home is simply too much work. Although you have the benefit of total control over design and decor in your own home, it often requires a lot of maintenance that can add up fast in time and money. If you live far away from your vacation home, that means hiring out the upkeep of the property. If you live close, you might spend half your time there tending to necessary household tasks.

Destination Clubs Offer Peace of Mind in a Risky Market

Destination clubs are another option that consists of members who join a country club type of organization to utilize a portfolio of properties that the club owns. The clubs work well for people who enjoy the privacy, space and conveniences a home offers, but don’t want to worry about maintenance hassles or be limited to one destination. Additionally, certain destination clubs also provide vacation planning and on-site concierge services that you would normally find at a luxury hotel.

Decor and amenities are determined by the club, and although this freedom is forfeited, many view this as a positive. Some people prefer not to spend their own time on these items and find comfort in knowing the organization is consistently keeping the properties in superb shape.

Interest in destination clubs is evident in the recent growth of LUSSO, which has doubled in size since 2007 and recently reported its strongest quarter since its start in 2006. The concept for the LUSSO Collection came to Greer after traveling with his wife and first child. They found rented homes to be unsatisfactory and the prospect of buying a second home unappealing. The need for rented cars, car seats, toys, games and groceries made the travel experience less than pleasant.

With its unique boutique structure and a members-to-residence ratio of 5.5-to-1, LUSSO is a choice that makes sense for a lot of people. Members get unlimited use of private luxury homes that are fully equipped with all needed items including a Lincoln Navigator, golf clubs, a gourmet kitchen stocked with pre-arrival groceries and amenities for all travelers regardless of age. The membership deposit is 100 percent refundable upon resignation as well as annual dues.

With an economic structure that is similar to a country club, members pay a fully refundable deposit (currently $425,000) and annual dues for unlimited access to the club’s portfolio of residences and services. Properties are in locations such as Lake Tahoe, Calif.; Cabo San Lucas, Mexico; Aspen, Colo.; Manhattan; Hawaii; the Bahamas and other choice destinations. For more information, visit www.lussocollection.com, or call (866) GO LUSSO.

Courtesy of ARAcontent

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Many people enjoy vacation properties because they promote spending quality time with friends and family and create cherished memories. If you are considering this investment, it’s worth your time to consider your options to make sure you get the right property for you.

“Each person’s situation is different when vacationing,” comments Kiersten Hegna, vice president of service delivery services at The LUSSO Collection, an organization that specializes in luxury vacation residences. “What works for one person might not be another person’s ideal situation. When taking the first steps toward investing in a vacation property, there are some things you need to think about so in the end you have what you want without regret.”

Location
Where is your favorite place to vacation? Is it a lake a couple of hours away from your home or a tropical island in the Pacific? If you have a favorite area you are able to access frequently, it might be worth buying a second home. When considering a second home, you might want to think about:

* What activities will you do there? For example, if you want to boat your vacation home should be on the water and if you ski it should be by a mountain resort.
* How often will you visit? Think about how much time and money you will invest driving or flying.
* Who do you plan to vacation with? How many bedrooms will you need to accommodate family and friends?
* Do you have the time to care for a second home? Or will you hire someone for maintenance?

Those who enjoy vacationing, but don’t necessarily want to be tied down to one location might consider other options. Destination clubs, for example, are a new concept in upscale vacationing that combines the spaciousness and splendor of a private home with five-star service and amenities. A destination club offers its members access to a portfolio of luxurious private homes in a variety of locations. This option has many of the benefits of second-home ownership, but with more flexibility and choice as to where you travel.

Maintenance
The reason many people end up selling their second home is because of maintenance hassles. Before investing, consider the time and cost it takes to care for an additional home. Often seasonal homes will have to be opened and closed depending on the weather. In addition there is yard maintenance, home cleaning and other regular chores needed to take care of a home. These can be hired out, but often can get costly. If you have the time to invest, you can do these yourself but many don’t want to spend half their vacation caring for their home. If you decide to purchase a permanent property, be sure to anticipate the maintenance responsibilities.

With destination clubs, each member pays a fraction of the maintenance costs through the annual dues. Each property is maintained by professionals so that it is clean and updated each time you visit. Maintenance processes are determined and managed by the club .

Amenities/Service
Second home ownership gives you complete control of your home, but you are pretty much on your own to navigate the area and schedule your vacation’s activities. Destination clubs often offer services that you would normally only receive at high-end hotels. This means that someone is there to assist you with your family’s needs. For example, at LUSSO they work with each member to provide complimentary personalized services such as pre-arrival grocery shopping, daily housekeeping, airport transfers and a luxury vehicle.

Cost
Cost is a priority when considering a vacation investment. For a second home, consider the property cost, the annual taxes and cost of maintenance and regular updates to the home. For a destination club, consider the initial deposit to join and how much is refundable should you decide to leave, annual dues, and any extra costs associated with services. After deciding on what you want and the overall costs of the investment, the right choice should be clear.

With properties in locations such as Aspen, Colo.; Cabo San Lucas, Mexico; New York City; Naples, Fla.; the Bahamas and other choice destinations, LUSSO members pay a fully refundable deposit (currently $395,000) and annual dues for unlimited access to the club’s portfolio of residences and services. For more information, visit www.lussocollection.com, or call (866) GO LUSSO.

Courtesy of ARAcontent

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