Fractional Ownership and True Equity

When considering the purchase of a vacation home in a residence club, equity (and the question of whether or not you’ll have it) may take a backseat to visions of sharing vacation memories with your family or having the flexibility to stay in exclusive vacation homes at various desirable locales throughout the year. "Equity" might sound considerably less sexy than "experience" or "exclusivity." However, it is actually one of the most significant advantages to owning a fractional home within a private residence club like The Élan Collection.

“The ‘equity' or deeded interest in an Élan property carries many of the same attributes as whole ownership—but for a fraction of the price,” said Stan Tonkin, vice president of international marketing and sales for The Élan Collection. “When you engage in a deeded real estate transaction with Élan, you will have use in perpetuity.”

Owners also have control of their deeded interest. It is sellable, and not to mention, willable. And, it is a way to enjoy a luxury vacation experience without the expense, responsibility and (sometimes) hassle of owning a property solely. Here is how Tonkin tells it:

“The Élan Collection is a true equity program,” he said. “We try to minimize risk as much as possible. Once the shares in a specific Élan residence are sold, that property is free and clear of encumbrances.”

The amount of time you can use your Élan property is proportionate to the amount of money you invest. For example, if you purchase a share in The Coral House in Turks and Caicos you will have four weeks of guaranteed use, and you have the option of exchanging guaranteed use time with other property owners in different locations through Élan’s voluntary reciprocal use trade program. And of course, you’ll enjoy all of the resort-style amenities you’ve always dreamt of-- 24/7 concierge services, travel accommodations, onsite luxury SUV, private chef and placement of personal items upon each visit.

Just how important is equity to a vacation homebuyer today? Is equity worth more or less? Feel free to share your thoughts with us!