Imagine that you have a lovely cottage amidst a valley in some upscale resort, and every summer you take your brood there to enjoy the cool mountain air. A place you can call your own during the entire duration of the stay. This is not some castle-in-the-air dream but a viable option that you can adopt, saving you trouble of spending all your possessions for a simple vacation home. To give credit to the skeptics, this really sound like a farfetched idea. However, say, instead of owning the entire property by yourself, what if several people come together and then buy a vacation home. What if everyone shares the cost and the time spent for holidays. What if the property is rented out and the profit divided among all the members. Then the idea does not look so farfetched and the lovely cottage in the hills doesn’t seem like a distant dream. Such a place is known as a travel vacation club, where several members pool together to buy a property, and then either they use it or rent it out. No wonder, this is a great offer for many people, who would otherwise have to compromise on their vacation house due the high cost. Naturally, due to a host of advantages, the travel vacation club has a number of takers. However, you must also consider the few disadvantages that it has. To know more on the advantages and disadvantages of a travel vacation club, read the article given below.
Advantages And Disadvantages Of Travel Vacation Club
The Pros Of Travel Vacation Club
- The greatest advantage of a travel vacation club is that you only pay for what you use. Instead of owning a condominium and staying in it only for the vacation and taking up the maintenance cost of the whole year, you pay for staying only during the vacation, thus saving a lot of expense.
- You are also saved from a lot of hassles. In a travel vacation club, you don’t have to deal with the upkeep and also about the property security.
- You are guaranteed a vacation destination once a year, as stipulated in the agreement of the property. So, it is easy for you to budget and save the days which you will require for your vacation.
- If you are not too particular about going to a different destination every year then, it is a very good investment option.
- Travel vacation club is also very economical for large families. Large families going on a vacation is always a nightmare. Apart from the financial consideration, it involves a lot of stress in finding the right hotel with the right number of rooms, vehicles etc. You are saved from all these in a travel vacation club. In addition, they are more luxurious and fully equipped which can appeal to the entire family.
- Another very good advantage of a travel vacation club is that you can convert it into a very good source of revenue by subletting it to other vacationers. This source of investment is very good for those who are less interested in holidaying. Renting out will also bring in your cost of repairs, taxes and other necessities.
The Cons Of Travel Vacation Club
- Though you are saved from the worry of maintenance, you will have to pay a large fee for its upkeep. And the maintenance charge may increase from year to year. The cost of maintenance also depends on the type and location of the property.
- After a year or two, you may get bored of vacationing in the same place again and again. If you can’t sell it, then you are stuck with it.
- Again, the resale value will depend on the real estate market. If the market is down then you will have to sell it either at a loss, or keep it and bear the maintenance charges until you are able to sell it without any loss.
- Since a vacation club has a number of owners it becomes a battle to decide who gets the property at a given time. Most often all the owners will want the house at the same time and this may give rise to conflict.