There are different plans available for clubhouses and resorts that come with features which draw the attention of the people. If one plans to keep one's property for many years, one needs to be sure that it fits one's needs completely. Resort home ownership, such as condo hotels and fractional shares are different from the concept called home ownership. One is likely to get anxious before getting hold of your allotted space. So, it assumes importance to ask some questions before signing on the dotted line for ownership of a resort property. A property in the early stages might look great to someone who is on the look out for a small facility with less populated surroundings. Some questions typically apply to a majority of resort property ownership, unless otherwise taken care of.
Some properties will offer a little bit of flexibility in price, while some others have a consolidated price. This situation is usually determined by the demand factor and the overall policy of the property developer or property management Company. If one has a clear knowledge of who stands to profit from the property sale and by how much amount, it will really help you in one's negotiations.
One has to check whether the project has reached completion or whether it is in its pre-construction stage. This question is of vital importance because the answer, in all probability, will affect the price of the property. Properties in the beginning stages of construction would be sold at a discounted price to attract buyers. As it becomes an assured investment in the Company, and the units attract an increase in demand, the price will surely go up. The question regarding the number of owners is central for people considering purchases of fractionals. The price will hinge on the number of other ownership opportunities obtainable in the particular unit; more owners will make way for the competition for prime space.
Regarding the type of financing available for property in general, both the condo hotels and fractionals are deemed timeshare properties. Even if the property is viewed as a second home, the bank will consider it as a secondary obligation; one that is less important than one's primary house mortgage. In that situation, you may have to pay more as down payment and the interest rate will be high. Some property developers offer financing services, which seem helpful, but make it a point to understand the details. This arrangement might be fine with you, but you may not want any surprises.
Typically, there will be expenses related to insurance, real estate taxes, and improvement of the property facilities. Usually property owners are made to pay for these items, especially in a condominium hotel setting; still it is important to ask. Other expenses you need to verify are the housekeeping and general maintenance expenses of the property. These costs are usually borne by the facility; but one shouldn't take it for granted. Make sure that there is plenty of flexibility to suit your style, so that you can make adjustments to get the most out of your property.
Martin Wynn
