As the economy stabilizes and people again look for diversity concerning their investments and lifestyle, we appreciate the many options associated with vacation home ownership. No matter what type of ownership you consider, the present time may offer a “buying opportunity” which in the future we may remember as an opportunity missed.

For many prospective vacation homeowners, fractional and interval ownership opportunities offer many advantages and access to a vacation residence at a much-lower price point. While the “time-share” industry suffered from bad publicity during the 1970s and 80s, the industry has changed. Major players include Ritz-Carlton, Four Seasons, Marriott, Wyndham and others. In addition, updated real estate safeguards have made interval and fractional ownership as secure as fee-simple ownership.

There are many legal and technical differences concerning leased and deeded interval and fractional ownership. However, the common denominator for most is the luxury of usage. While a weekend home within close proximity to one’s primary residence may receive 100 nights of usage per annum, most vacation homes located beyond150 miles receive on average just 23.5 days of usage per year.

The interval and fractional ownership opportunity should be considered by those who may be using their vacation residence for less than one month per year, desire a maintenance-free property and are looking for ownership at an affordable entry point.

Fractional and interval ownership arrangements have many advantages, yet are not correct for every purchaser. If considering the purchase of a vacation residence, the first and foremost thing to consider is the amount of usage. This includes your immediate family, friends, and associates and of course, we would be remiss if we did not mention possible rental income from nights of non-use.

Fractional and interval ownership may be more complex versus fee-simple ownership. We strongly suggest you consult with local real estate brokers in the vacation community you are considering as well as with your attorney and/or tax advisor as each ownership option has difference tax advantages and consequences.

As the economy begins to stabilize, we at The Society have enjoyed an increase in calls concerning our marketing services for vacation home rentals. Yet, before considering a purchase and/or interviewing management companies, it may be best to “Try Before You Buy”.

Let’s face it, we have all been on vacation and while enjoying ourselves, we begin to fantasize about the possibility of a vacation home purchase and start looking in the windows of real estate offices next door to the tee-shirt shop. While ownership can take many different forms from interval-ownership, time-shares, full ownership, partnerships and so forth, we suggest you “rent before you buy”.

1) Learning the Lay of the Land: Recently I enjoyed a vacation in Costa Rica. We stayed at a wonderful resort community and were truly enjoying the exemplary service provided by the management company representing our vacation home rental. We opened a dialogue with the management company assuming they would be most proactive in assisting us with a purchase and management contract in the community. To our surprise, the management company advised us 1) High-season is vastly different than the time we were visiting and 2) they suggested another area of Costa Rica to visit and 3) consider visiting at different times of the year. The management’s suggestions were right on target. We found a neighboring area we were even more impressed with and were assured in-season crowds would be minimal. All of this came about due to my comment “If I have to place a book on my lounge chair at 7AM to reserve it, I will not be a happy camper”.

2) Multiple Visits: From my experience as a real estate broker with experience in resort communities, I suggest visiting 3-4 times before making a purchase. By visiting multiple times, you can assess if the initial “wow-factor” continues on each visit and learn about the different seasons. For example, one of my clients bought in Vail, Colorado for the skiing. Yet, after a summer visit and enjoyment of the many golf courses, the clients now rent their vacation residence during the winter months (through The Society) and enjoy the summers on the golf course and biking the many mountain and paved trails.