Destination clubs and fractional ownership are two are very different models. The biggest difference is that you do not actually own anything in a Destination Club – you pay for access to use the club’s vacation homes. With fractional ownership, you actually own real estate.
Destination clubs resemble country clubs – it has members that are charged a large initiation fee and annual membership dues to gain access to the club’s vacation homes. Often, they rely on a constant influx of new members and their cash – a model that degrades exclusivity and, inevitably, the users’ experience because there are too many members and the homes you desire are not available for you to use.
Leaving a destination club may take a long time as you get put on a waiting list and are only allowed to leave when a certain number of new owners have joined the club. This creates long waiting lists that may take a few years for you to reach the top.
In the event that a destination club fails, its members’ investments are at risk. In the event a Destination Club fails, its members lose their entire initiation fee which typically ranges from $300K to $600K.
By contrast, Elite Destination Homes’ simple, fractional ownership model is actual ownership of a second home with a few other like-minded families with a clear operating agreement governing the home, including the ability to sell your home at any time.
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