What is Vacation Ownership?
The key definition of Vacation ownership is essentially a group of people coming together and investing in a vacation home.
The word “vacation ownership” has grown over decades and transformed into a wide variety of vacation products and plans. Vacation Ownership is also known as “holiday ownership” and interval ownership. The umbrella of vacation ownership covers, fractional ownership, private residence clubs, destination clubs, point clubs and more. The term can be broadened further to include campground membership and the “condo hotel” concept. In this concept, a condo is purchased by the owner but is only allowed to use it for a specific period of time and it is put to rent by a hotel management company for the rest of the tenure.
There are many ways to define Vacation ownership, but the basic structure of vacation ownership is extremely simple. You and a set of other people come together and share the purchase cost of a vacation accommodation. This purchase lets you use this accommodation for one week (or more) which guarantees your ability to use that accommodation during the period of time you choose either for life or for a specified number of years. Accommodations generally range from hotel rooms to condos, to cabins to luxury houses.
Owning a vacation ownership in the standard sense means a villa, house or hotel is subdivided into 52 separate units of time (52 weeks in a year), and is usually sold to a maximum of 51 (keep 1 week every year for annual renovations/maintenance). Each investor would own a deeded share of 1/51 of the unit. Each share is considered as one week of vacation. Every owner is given ownership rights and they can enjoy all the privileges of the shares that they own. The price of the ownership is usually determined by the resort’s location, size of the unit and the time of year purchased by a new owner. Owners also have to pay an annual maintenance fee for the aftercare of the property.
To provide more clarity and reduce discrepancies, we have culled out information on how to pick a vacation ownership option that suits you best.
Vacation ownership is the best way to plan your holidays. But it is necessary to make the right choice. You don’t want to be locked in a package or holiday resort that doesn’t suit your or give you required facilities.
Below mentioned are the checklist that will guide you in the right direction:
- Does the vacation ownership offer you locations, activities, features and facilities which you always wanted when you thought of a dream holiday?
- Does the package accommodate your entire family and is it flexible enough? You need to check the facilities, comfort level and make sure the resort has facilities to engage your entire family
- Always compare resorts in your “meet-my-needs” category, so that you don’t settle for the first mediocre resort that comes your way.
- When you finalise on the bundle of your package, make sure you have the flexibility of various instalment choices for simplicity of financing.
- Do not forget to check whether the package you are about purchase gives you exchange points or credit that can be redeemed at other network resorts/ destinations.
- Last but not the least; make sure your vacation ownership resort is a member of AIRDA. The AIRDA membership automatically guarantees industry acceptable standards of features, facilities, package formats and compliance to the code of ethics.
In India, the best way to acquaint yourself with this lucrative concept of “Vacation ownership” is by availing Club Mahindra membership. Know more about its membership plans and fees and secure yourself a lifelong vacation plan.