Private Residence Clubs
Private Residence Clubs (PRC’s) have taken the hassle out of vacation home ownership and provided an attractive alternative to wholly-owned second homes at a fraction of the cost.
These luxury properties are frequently found in the USA, Canada and Mexico, and are rapidly gaining in popularity in Europe and the Far East.
Not to be confused with a timeshare or a typical vacation ownership plan, which is basically a renewable vacation, a Private Residence Club is a real estate investment with flexibility of use that models single-home ownership. With Private Residence Clubs, the buyer has an expectation of value and price appreciation.
Membership functions like that of a private equity golf and country club. The level of social interaction and pattern of use can be chosen to best fit the needs of the individual members. Amenities abound, with recreational, dining and shopping options that rival five-star resorts. And comparable to joint ownership of jet aircraft, the maintenance costs and use of an expensive asset is shared.
For example, a one-eighth share of a $2 million luxury home is purchased for $250,000. Each owner receives four weeks of guaranteed time during prime season, to be reserved six months in advance. Owners can book the weeks they want on first, second and third choice basis.
The home is guaranteed to the eight owners for a total 32 weeks. The remaining 20 weeks of the year are "open access" time when any owner can make a reservation at no additional charge. This allows owners to obtain several weeks of extra time as their individual schedules permit.
Private Residence Clubs address a previously unsatisfied need at an affordable price to an enlarged and aspiring audience set on luxury vacation ownership. As consumer awareness increases and the fractional property industry matures, more and more buyers will be drawn to this concept by the global recession and reap the rewards and lifestyle benefits of a luxury second home without the hassles and price tags that burden sole ownership.