Destination Club Warning
Destination Clubs are different from time shares and fractional interests. Generally people buy into the club and pay annual dues, much like a country club. Buy-in costs range from $100,000 to $400,000. Buyers don't get an ownership share of the properties, but get to use a variety of luxury homes around the world, and sometimes get to use a jet or a yacht as well. One of the advantages is that up to 80% of this may be refunded when you leave the club. The Wall Street Journal today reported that Tanner & Haley Resorts, a destination club, has filed for bankruptcy protection. If these deposits or buy-ins are not protected, that could cause a major slowdown in these destination clubs. This comes at the same time as sellers in our high inventory market are asking whether they can sell their condos as fractional interests or to a destination club.
3 comments • Sharon Simms St Pete FL - CRS CIPS CLHMS RSPS • July 29 2006 09:55PMComments
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Sharon,
My website gets 5,000 unique visitors per month all looking for fractional properties, and I can tell you from the stats that Destination Clubs are alive and well and....popular! They get many more hits on average than fractional Private Homes or Private Residence Clubs...or any other category for that matter.
There truly are just a handful or two of Destination Clubs out there, but there are many, many Private Residence Clubs which are somewhere between Destination Clubs and Private Homes. You actually purchase a deeded interest in a particular villa or home on one of their properties, but can exchange that at will for another villa or home at another of their locations.
-- Lisa/Luxury Fractional Guide