Owners of luxury fractional property buy a share of a single residence, that provides them with a couple of weeks to thirteen weeks of usage a year. The ownership period varies by development and can be expressed as a fraction (eg 1/10, 1/8, or ¼) or as a number of weeks (eg 5, 6 or 12 weeks).
Private Residence Clubs are the upper tier of the luxury fractional market, providing all the services of a five star hotel together with the ownership.
There are hundreds of fractional and Private Residence Club developments located in city, beach, mountain and resort destinations. Use our home directory to search through these locations.
They are sometimes compared to timeshares, although there are several key differences. For instance luxury fractionals are in better locations, are more luxurious and typically larger, providing 2, 3 or 4+ bedrooms. They also offer true, deeded ownership whereas timeshares usually just offer a "right to use."
This article covers the reasons people buy fractionals and PRCs, and if you're looking to buy read the list of questions to ask before buying your fractional. For easy reference there is a glossary of terms.
The latest news and research on luxury fractionals and Private Residence Clubs is available below.
The National Association of Realtors (NAR) survey showed vacation home sales hit a record 1.07 million in 2006 representing 14 percent of all homes purchased last year. Sales of luxurious shared ownership homes showed a similar trend according to Ragatz Associates.
Timbers Resorts has earned an excellent reputation as a developer of private residence clubs and high-end boutique resorts. We recently spoke to David Burden the founder and President of Timbers resorts about the companies resorts to date and its future plans.
Many of the Private Residence Clubs that we see offer access to golf courses, but one that is very much designed from the ground up for golfers is Private Quarters Club. Owners enjoy luxury golf vacation homes with first class amenities, and the privilege of golf and country club membership. At last weeks Ragatz Fractional conference we spoke to members of the management team.
Nowadays it's fairly straightforward to obtain a mortgage to buy your luxury fractional or private residence club home. The bad news is that not all lenders are familiar with the concept of fractional property, so you might not be able to obtain a mortgage from your neighborhood bank. The good news is that the number of lenders who are offering mortgages for fractional property including private residence clubs is growing all the time. In fact for the banks that do lend for these types of loans it's essentially no different from getting a mortgage on any other second home.
Luxury hotel brands have some of the most high profile private residence clubs on offer. The rich history and high brand visibility that the luxury hotels have amassed over the years can give their Private Residence Club an edge over others. If you buy into one of their clubs you will know all that the brand has to offer in terms of standards and service. We compare four of these Private Residence Clubs offered by luxury hotel brands, Fairmont Heritage Place, Four Seasons Residence Club, St. Regis Residence Club and the Ritz-Carlton Club.
We hear a variety of reasons as to why people buy into private residence clubs and luxury fractionals. Usually there are several factors that persuade people that this is the right way to go for their vacation property. We've summarized the main reasons here.
The Residences at The Little Nell in Aspen are now priced at $3,000,000 for a 4 bedroom residence and $1,475,000 for a 3 bedroom residence for a 1/8th share. The price of these has increased substantially over the 18 months since they became available.
The Aspen Times reported the sale of all 275 of the memberships at the St. Regis Private Residence Club in Aspen. Prices varied between $300,000 and $1.5m for four weeks of ownership of a 2 or 3 bedroom suite.
The Magellan, an 860 ft long, luxury residential cruise ship will be completed in 2009. The ship will offer both full ownership and fractional ownership in a variety of suite sizes. Owners will be able to circumnavigate the globe every two years, with stops at 150 ports of call each year.
This is clearly not your typical Private Residence Club, and is the first vessel we've seen of this size to offer fractional ownership.