Exclusive Resorts is one of the largest equity vacation clubs in both the number of destinations and members.
The club offers many residences, and even has resort homes in some locations. The club also organizes Once in a Lifetime trips to interesting places around the world. Their locations include Aspen, Bahamas, Cabo Sans Lucas, Hawaii, London, New York, Paris, Turks & Caicos, Tuscany, Vail, and more.
Is an investment in Exclusive Resorts likely to increase in value?
Real Estate portfolio investments across America have been performing exceptionally well since 2008. However, some industry experts firmly predict declining property values soon. As prices have appreciated significantly for such a lengthy period, it is unlikely to continue to increase at the current rate. The property market is currently extremely high, and this impacts luxury vacation properties like Exclusive Resorts.
However, this is only one opinion. Nobody can predict the future. It also possible that real estate prices double in the next ten years. So a person must consider all possibilities and fully prepare for real estate to move in either direction or not at all.
Since Exclusive Resorts is a club and not a fractional property it may be more difficult to sell your membership in a saturated property market or when people have less disposable income.
Consider the opportunity cost of your upfront investment.
When assessing any sizeable financial investment, it is essential to compare it with other investment options available. Since the upfront investment in Exclusive Resorts is high, that money can be used for other capital deployments. An opportunity cost rate of 3% on invested capital of $100,000 is $3,000 per year in missed investment income.
The annual fee of investing in Exclusive Resorts is high. If you are a member for 10 years in Exclusive Resorts, you will end up paying over $150,000 in maintenance fees. You by no means will recover this investment through real estate appreciation. However, the homeownership appreciation may end up offsetting some of the costs.
Proposed federal taxes on property ownership.
The National Association of American Realtors is warning of planned new federal tax laws that will reduce the benefits of property ownership in the 2018 fiscal year. This will specifically target coastal properties and second homes. This proposed change may initially adversely impact Exclusive Resorts property value because of their locations.
Consider the additional benefits of an Exclusive Resorts Investment.
The upkeep of a vacation home requires extensive administration, maintenance, and connections to respected local service providers. Instead of dealing with this by owning your own vacation home, Exclusive Resorts takes care of 100% of this for you.
To maximize the enjoyment of your vacation, a personal concierge service books your travel arrangements and leisure activities in advance of your arrival.
So the benefits to you may be worth the extra annual cost.
Another important aspect to consider is to realistically estimate the amount of time you will be utilizing your vacation property. This will have a large impact on which investment option is best suited for you. If you cannot use the full allotted time Exclusive Resorts provides each year, the costs may not be worth it.
If you like to vacation in a new exotic destination every year, Exclusive Resorts is perfect. Remember that in owning a single vacation home outright you may grow tired of visiting in a few years.
Vacation club investment options present an alternative to full-time ownership and upkeep of a property you only use periodically.
With Exclusive Resorts, all it takes to visit one of your homes is a phone call!
What does “value” mean to you personally?
This is an important point to consider before committing financially to any investment. While considering the financial costs and benefits of investing in Exclusive Resorts, it is also important to first establish what “value” means to you and your family.
In today’s world, the constant stress and demands on “breadwinners” and their family are fast increasing. The negative impacts of such busy lifestyles on all aspects of a family are well documented. It is vital to designate some downtime for you and your loved ones.
It is essential to ensure that when you can vacation, you embrace it to the fullest!
The appreciation of an investment in Exclusive Resorts comes in many forms.
For the most part, full ownership of an exclusive vacation property is not a viable option for many. Investing in Exclusive Resorts is a way to ensure you have ownership of real estate that suits your individual requirements, for a portion of the year, without incurring all the costs and demands of owning a property individually.