The Eden Residence Club - Well That Explains That Then

1. WELL THAT EXPLAINS THAT THEN! BY DAVID SMITH to the same location, year after year. More often than not they are built in world-class ski destinations, cities, beach locations or other desirable lifestyle locations. Some of the PRC’s also offer the opportunity to swap your time and location with other locations within their group (e.g. Four Seasons, Ritz Carlton). Destination Clubs on the other hand provide access to a wide variety of single properties, often spread throughout the world, and may also provide access to specialised travel and tours. Whereas the developers of Residence Clubs own and operate the whole community, Destination Club buy single units and do not own or operate the community. Members in Destination Clubs have a variety of locations to choose from each time they go on vacation. PRC’s usually offer true deeded fractional ownership in real estate. Many Destination Clubs either offer an “equity” participation in one form or another, either directly, by being structured as an investment company or indirectly by offering members a share in the increased value of the properties. Other Destination Clubs simply offer Members “non-equity” or a licence to use. These types of Destination Clubs are essentially renting access to the homes and services, and members don’t have an ownership interest in the properties. There’s no “right” answer to this structure - it really depends what your objectives and desires are, and what you feel comfortable with. “Whichever side you look at it from its just made both Residence Clubs and Destination Club a whole heap more appealing.” Punta Cana Residence, Punta Cana J terminology is confusing and the lines between these two are getting increasingly blurry. In many cases the terms are used interchangeably so you’ll find some companies that might fit closer to a Destination Club, but which refer to themselves as Private Residence Clubs. Both of them are alternatives to fully owning a luxury second home, or renting luxury vacation villas and both offer impeccably furnished, luxurious accommodation. Both also provide very high levels of service to their members and owners. Both require an initial upfront payment to purchase a membership or share (equity) and then both have annual dues or maintenance payments. But there are several key differences between the two. The most important difference is that with Private Residence Clubs (PRC) you are buying a share in one property in one location typically operated by a luxury hotel chain. They come with access to lots of luxury facilities in a community of luxury homes rather than buying a standalone home outside of a community. They are therefore great for folks who know that they want to go back ust as I manged to get my head around the definition of Destination Clubs and Private Residence Clubs which have a lot in common, a hybrid comes along which could just be the making of all of them. The Owners of Private Residence Clubs own actual real estate and have a title and deed. As such they can gain or lose as the real estate values move with the market. The properties within PRC’s are bought using a fractional ownership plan. This means the owners each purchase a share of a property, the size of the share denotes the amount of time that they can use in the property. For example, if a quarter share is purchased, it entitles the buyer to use the property thirteen weeks a year. Typical shares are 1/6, 1/7, 1/8, and 1/10. Some clubs also allow their members to exchange the time they have available in their own property, with other members who own properties in a different location under the same group. Like a home, each owner is free to sell their share at any time, and so may benefit financially if the value has risen. The share can be mortgaged or resold without the need to contact the other owners. WHICHDESTINATIONS.COM Viceroy Residence, Anguilla

2. Castiglion del Bosco, Tuscany The hybrid I referred to earlier is The Eden Residence Club. A ‘Club of clubs’ or association of Residence Clubs and Destination Clubs. The Eden Residence Club can only be accessed by members of participating clubs. For Residence Club owners it allows them to rent out un-used nights for a set sum each night with no management fee or deductions. Additionally they have access to visit The Eden Residence Clubs home in St Andrews Scotland, the most luxurious private residence club in the UK. Owners may also opt in and acquire an Eden Residence Club membership which allows them to travel the world and stay in all of the other participating clubs at discounted Members rates. It’s not an exchange program, just a simple cash on reservation system. The membership can be added to their deeded interest and transferred if they ever sell their fractional interest within their Residence Club and the owners keep the upside of any uplift the combination makes. For Destination Club owners it provides a substantially larger pool of luxury homes in each location they can access, as well as hundreds of other locations around the world in consistently luxurious surroundings. Moreover, they have no financial commitment of upkeep as the club operates without debt merely utilising the un-used inventory of the world’s most exclusive private clubs. For some it’s a low-cost hedge so they can guarantee they can get what they want in the locations where they want to travel, opening up parts of the world where they would otherwise be unable to travel. For others it simply allows them to maximise the efficiency of ownership, turning nights that were previously un-rentable in to free cash. Whichever side you look at it from its just made both Residence Clubs and Destination Club a whole heap more appealing. For more information visit www.theedenresidenceclub.com La Reserva Residences, Paris WHICHDESTINATIONS.COM