Vacation Home Option
If you are reading this, chances are that you have a vested interest in real estate in the Vallarta region. You are most likely a buyer or a seller (or both) or a professional involved in the industry, and you need sources of clear and current information about the state of the market. Redefine Leisure Travel. With today’s evolving vacation home market, consumers are faced with an increasingly diverse marketplace and options in leisure travel, according to the American Resort Development Association (ARDA). To select the vacation home best suited to their lifestyle needs and vacation dreams, consumers must educate themselves about the market terminology and ownership options, and assess their vacation preferences, travel goals and budget. "Terms such as 'deeded,' 'fractional ownership residences,' 'destination clubs' and 'timeshares' are frequently heard because of a surging interest in vacation properties that move beyond the traditional vacation accommodations or second home,” said Howard Nusbaum, president and chief executive officer of ARDA. “Sorting through exactly what these products offer and for whom they are best suited can puzzle even the most sophisticated consumer." Four out of every 10 purchases are a second home, being used for either an investment or vacation property, according to the National Association of Realtors, and this trend is expected to grow as Baby Boomers enter their peak earning years. The growing variety of vacation home options is redefining leisure travel, with the following product categories. Timeshare / Vacation Ownership Pricing: With vacation ownership, consumers buy in increments of one week. It is a one-time purchase, and owners also pay an annual maintenance fee, depending on the unit size, location and amenities of the resort. Timeshare is not intended to be an investment opportunity, rather an alternative to traditional vacation accommodations and a way to hedge against "vacation inflation". According to a recently released Ernst & Young study, the weighted average price of a timeshare interval, or week, sold during 2005 was $17,797 USD. Fractional Ownership / Private Residence Clubs Pricing: According to the 2006 Fractional Interests Leisure Real Estate Market Report, fractional pricing ranges from $60,750 to $649,564 USD per interest, based on floor plan, location and size of the fraction. In addition to the purchase price, there are annual maintenance fees, which in 2005 averaged $5,575 USD. Destination Clubs Pricing: The Fractional Interests study also states that the average length of stay at destination clubs ranges from one to nine weeks, with costs including a one-time fee of $20,000 to $1.5 million USD, which is typically between 80 and 100 percent refundable if they choose to exit the program. Annual dues range from $1,500 to $30,000 USD. The club may also charge a nightly fee while guests are in residence. Condo Hotels Pricing: Condo hotel pricing varies by real estate market trends; currently there are a few options available for condo hotels in Vallarta. Traditional Second Home Ownership Pricing: In Vallarta, condominiums can range from $100,000 to over $1 million USD and homes commonly from $250,000 to over $2 million. Vacation Assessment Questionnaire
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