Types of Second Home Ownership In Park City Utah
Full Ownership
Full ownership is the traditional way many people purchase a second home just as they would their primary residence. Since real estate traditionally appreciated over time, purchasing a vacation home can be justified as not only a recreational expense but also as an investment.
It’s especially ideal for someone who wants to be able to use the property any time and desires that flexibility. Individuals may either keep it to themselves or place it in a rental pool to get some income to offset costs of ownership. If you would like to place it in a rental pool it is important to make sure the property is in an area zoned for nightly rental.
If your interest lies in a full ownership property, I can help you find the property that best suits your needs whether it is ski-in ski-out, golf course property, near Main Street, house or condo.
Fractional Ownership
Fractional ownership of vacation homes, also called private residence clubs, is a relatively new concept that allows you to enjoy up to three months of home ownership privileges at an individual top-of-the-line, luxury resort but at a fraction of the cost of whole ownership.
Fractionals and private residence clubs offer you the opportunity to purchase a deeded share ( usually 1/ 4 to 1/13 ) in a residence that gives you a certain number of weeks per year at a the property and use of all amenities.
This type of real estate arrangement is ideal if you want the benefits of owning an impressive second home complete with personalized services and located in a very exclusive community but can’t justify the investment because of limited use.
Prices range widely from $40,000 to more than $1 million, depending on the location, number of weeks, number of bedrooms and level of luxury. Residences may be hotel suites, cabins, townhouses, villas or detached homes. Keep in mind that these are truly top-of-the-line residences that would cost you two to five times as much if purchased outright as wholly owned vacation homes.
In Park City there are several different developments that offer fractional condo ownership opportunites which include locations at Deer Valley Resort and The Canyons Resort. Please contact me if you are interested in finding out about the fractional ownership opportunities in the Park City area.
Destination Clubs
Destination clubs also called vacation clubs, have suddenly become the talk of the vacation industry. The concept is simple: much like a traditional country club, members pay a membership deposit and annual dues to join and access the club’s properties. But rather than access to a single golf course as with a country club, members of vacation clubs enjoy the use of a portfolio of high-end homes in resort destinations. They are ideal for the individual who loves variety and enjoys the thrill of visiting different locations.
The portfolio of homes in a destination club are the crème-de-la-crème both from a value standpoint and location. The homes in the lesser-priced clubs average a minimum of $1 million and go up to $10 million homes in the higher priced clubs. They are situated around the world in the finest locations money can buy.
There are two types of destination clubs which are equity and non-equity. With the equity type, you receive a deed to a percentage of the entire real estate portfolio and in the non-equity you receive just a right to use.
Destination clubs promote anytime, anywhere availability. While property availability in destination clubs far surpasses that of timeshares due to lower member-to-resident ratio (typically 10:1 in destination clubs vs 48:1 in timeshares), the fact is that you are still sharing homes with other members.
Most clubs provide up to 8 weeks of use per year, but limit the time you can stay in a single property to 2 to 3 weeks. All clubs charge a one-time refundable deposit ranging from $75,000 to over $500,000 (depending of value of homes in the portfolio). A portion of your membership deposit is refundable if you decide to opt out and most clubs charge a transfer fee which varies. Then there are annual dues to cover property expenses such as maintenance, utilities, real-estate taxes, etc.
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